Insurance Curator The cyber‐risk landscape in the United States is evolving at break-neck speed, and so are the insurance products built to transfer that risk. From Fortune 100 enterprises headquartered in New York to fast-growing SaaS start-ups in Austin, Texas, nearly every organization now shops for cybersecurity insurance. Yet policy language, coverage triggers, limits, sub-limits, and pricing can vary wildly from one carrier to the next.
This ultimate guide breaks down how the leading U.S. cyber insurers stack up—feature-by-feature and dollar-for-dollar—so you can make an informed buying decision.
Table of Contents
- Why Carrier Selection Matters
- Methodology & Sources
- Market Snapshot: U.S. Cyber Insurance in 2024
- Carrier-by-Carrier Coverage Comparison
- Pricing Benchmarks by Company Size & State
- Critical Endorsements & Exclusions
- Expert Takeaways & Buying Checklist
- Frequently Asked Questions
Why Carrier Selection Matters
Not all cyber policies are created equal. Carriers differ in:
- Limit Structures: Some share one aggregate limit for first- and third-party claims; others split them.
- Incident Response Panels: Quality of breach coaches, forensic firms, and PR vendors varies.
- Ransomware Sublimits: Many policies now cap ransomware payments at 50% or less of the overall policy limit.
- Underwriting Appetite: Industries like healthcare in California or payment processors in New York face stricter underwriting rules.
Choosing the wrong carrier can leave costly gaps—especially when exclusions kick in. (See our deep dive on 12 Common Exclusions Hidden in Cybersecurity Insurance Policies for more details.)
Methodology & Sources
To create an apples-to-apples comparison, we:
- Reviewed 62 specimen policies filed in California, New York, and Texas between January 2023 and February 2024.
- Analyzed broker rate sheets from Marsh, Aon, and Lockton available Q4 2023.
- Interviewed six underwriters and four breach coaches with 10+ years’ experience.
- Cited third-party studies for pricing and claims trends, including:
- 2023 Cost of a Data Breach Report (IBM/Ponemon)
- 2023 U.S. Cyber Insurance Market Update (Fitch Ratings)
- Marsh Global Insurance Market Index Q4 2023
All dollar figures are in U.S. dollars and reflect average premiums for standalone cyber policies with a $1 million limit and $10 k retention, unless noted otherwise.
Market Snapshot: U.S. Cyber Insurance in 2024
| Metric | 2022 | 2023 | % Change |
|---|---|---|---|
| Total Direct Premiums Written | $7.2 B | $9.0 B | +25% |
| Average SMB Premium (1M Limit) | $2,835 | $3,622 | +28% |
| Average Ransomware Claim Payout | $826,000 | $937,000 | +13% |
Source: Fitch Ratings, Marsh.
Key trend: While rates moderated in late 2023, carriers tightened terms—especially around ransomware and social-engineering fraud. If your organization relies on mission-critical SaaS or processes sensitive data, policy nuances matter more than ever.
Carrier-by-Carrier Coverage Comparison
The table below summarizes seven top carriers active across the continental United States. All offer nationwide forms but may file state-specific endorsements (notably in California and New York).
| Feature | AIG CyberEdge | Chubb Cyber Enterprise Risk Mgmt | Travelers CyberRisk | Beazley Breach Response | Coalition Active Insurance | Hiscox CyberClear | CNA CyberPrep |
|---|---|---|---|---|---|---|---|
| Incident Response Panel | 50+ vendors, 24/7 hotline | 40+ vendors, digital portal | 30+ vendors | 60+ vendors, including Kroll | Proprietary in-house SOC | 25+ vendors | 35+ vendors |
| Ransomware Sublimit | 75% of policy limit | 50% | 50% | 75% | 100% (behavior-based triggers) | 50% | 60% |
| Social Engineering Fraud | Optional, $250 k sublimit | Included to full limit | Optional, $100 k | Optional, $250 k | Included, $500 k | Optional | Optional |
| Business Interruption Waiting Period | 12 hrs | 8 hrs | 8 hrs | 12 hrs | 0 hrs (subject to scans) | 12 hrs | 10 hrs |
| System Failure Coverage | Included | Included | Optional | Included | Included | Optional | Included |
| Typical Premium (50-employee SaaS firm in CA) | $4,500 | $4,950 | $4,100 | $4,300 | $3,900 | $4,250 | $4,400 |
| Retention | $25 k | $25 k | $15 k | $25 k | $10 k | $15 k | $25 k |
| 24/7 Breach Coach? | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Notes:
- Premiums reflect Q1 2024 quotes for a 50-employee SaaS company in San Jose, California with $10 million revenue.
- Coalition leverages continuous active scanning; underwriting credits can cut premiums by up to 15% for low-risk networks.
- Chubb’s ransomware limit can be restored for an additional premium after the first event.
Deep-Dive Highlights
AIG CyberEdge
- Strength: Broad first-party language, especially for system failure and reputational harm.
- Weakness: Higher minimum retention ($25 k) may not suit micro-SMBs.
- Notable Endorsement: “Technology Upgrade” pays to replace outdated systems after a covered breach.
Chubb Cyber ERM
- Strength: Best-in-class business interruption waiting period (8 hours).
- Weakness: 50% ransomware sublimit unless insured completes Chubb’s Ransomware Supplemental.
Travelers CyberRisk
- Strength: Competitive pricing in Midwest states like Illinois and Ohio.
- Weakness: Social-engineering fraud is not automatically included; requires a Crime endorsement.
(The nuances above are covered in full in What Does Cybersecurity Insurance Cover? Comprehensive Breakdown by Coverage Part.)
Pricing Benchmarks by Company Size & State
To ground the discussion, below are real-world quotes gathered from brokers in February 2024:
| Company Profile | Austin, TX | New York City, NY | San Francisco, CA |
|---|---|---|---|
| Retailer, $5 M revenue, 25 employees | $2,100 (Travelers) | $2,600 (Hiscox) | $2,800 (Hiscox) |
| Fintech, $50 M revenue, 150 employees | $12,400 (Chubb) | $14,900 (AIG) | $15,700 (AIG) |
| Healthcare system, $300 M revenue, 1,200 employees | $96,000 (Beazley) | $108,000 (Chubb) | $112,500 (Beazley) |
Observations:
- New York (especially businesses governed by NYDFS Part 500) sees a 10–15% rate load vs. Texas.
- California tech firms pay a wildfire‐like premium due to concentration of cloud dependency and higher litigation risk.
- Mid-market healthcare faces the steepest rates because ransomware frequency remains highest in that sector.
Critical Endorsements & Exclusions
Even the richest base form may leave holes without the right add-ons.
Must-Have Endorsements in 2024
- Invoice Manipulation / Payment Diversion: Extends social-engineering coverage to vendor impersonation schemes.
- Cryptocurrency Ransom Payments: Clarifies reimbursement when Bitcoins are used.
- Reputational Harm: Covers lost income from brand damage post-breach (AIG & Beazley).
- System Failure (Non-Security Trigger): Pays when a coding error—not a hacker—causes downtime.
High-Risk Exclusions to Watch
- “War” Exclusion with “Cyber Terrorism” Wording
- “Failure to Maintain Minimum Security Standards”
- Prior Acts Exclusion with Retroactive Date Reset
A line-by-line walkthrough of these clauses is available in How to Read a Cybersecurity Insurance Policy: Clause-by-Clause Analysis.
Case Study: Ransomware Sublimit Pitfalls
In July 2023, a Brooklyn-based logistics company suffered a REvil ransomware attack. They carried a $2 million CyberRisk policy with Travelers but overlooked that ransomware was capped at $1 million. Total incident costs:
- Ransom Payment: $650,000
- Forensics & Legal: $300,000
- Business Interruption: $450,000
Total: $1.4 million. The sub-limit left $400,000 uninsured.
Key takeaway: Always align ransomware limits with realistic worst-case scenarios. See our dedicated guide on Ransomware Coverage Limits in Cybersecurity Insurance: How to Get Adequate Protection.
Expert Takeaways & Buying Checklist
Cyber broker Maggie Liu, CPCU (Chicago), shares:
“Don’t chase the lowest premium. Focus on panel quality and sub-limits. A cheap policy with a 50% ransomware cap can be more expensive in the long run.”
10-Point Checklist Before You Bind Coverage
- Confirm policy aggregate limit vs. sub-limits for ransomware, social engineering, and BEC.
- Verify retroactive date—ideally “Full Prior Acts.”
- Scrutinize waiting periods for business interruption (8–12 hours is market-best).
- Make sure incident response expenses erode the retention rather than the limit.
- Ask if the carrier will provide a limit reinstatement option post-claim.
- Review war and terrorism language for nation-state attacks.
- Check whether system failure includes non-malicious outages.
- Obtain endorsement for PCI/DSS assessments if you process payment cards.
- Ensure social-engineering coverage mimics real-world invoice diversion scenarios.
- Validate that the carrier’s panel vendors can legally operate in all 50 states.
Frequently Asked Questions
Q: Can I buy cybersecurity insurance bundled with Tech E&O?
A: Yes. Chubb, AIG, and CNA all offer packaged programs. Be aware that Tech E&O limits often share the cyber aggregate, potentially diluting available funds.
Q: Are premiums tax-deductible?
A: Generally, yes, as an ordinary business expense under IRS § 162.
Q: Does compliance with NYDFS 500 guarantee insurability?
A: No. While compliance helps underwriting, carriers still evaluate ransomware controls, MFA deployment, and backup hygiene.
Q: How often should I shop my cyber policy?
A: Annually. Market conditions fluctuate, and continuous security improvements can yield double-digit premium savings.
Final Thoughts
Carrier selection is one of the most consequential decisions in your cyber-risk management strategy. Compare limits, sub-limits, and exclusions—not just premiums—across at least three carriers. In high-risk jurisdictions such as New York and California, getting the right endorsements can be the difference between a fully funded recovery and a budget-breaking breach.
When in doubt, partner with a specialized broker and cross-reference specimen policies with our detailed coverage analyses throughout the Policy Coverage & Exclusions pillar.
Last updated: February 2, 2026
