What AI startup insurance costs

Nobody publishes a price for AI cover on its own: it comes as part of tech E&O, cyber or D&O. These are the prices brokers and insurers do publish for those policies, with who each figure describes, so you can tell a median for funded startups from an average for one-person IT firms.

Every figure is linked to its source and dated. Checked 22 October 2026. Published figures are not quotes.

The headline numbers

Tech E&O, startup median: About $2,000 a year
Cyber, startup median: $2,755 a year
D&O, startup median: $6,000 a year
Seed-stage package: $2,000 to $4,000 a year

Medians are from Vouch’s own clients; the seed package is Corgi’s estimate for general liability, tech E&O and cyber at $1M limits.

Tech E&O

Source	Price	Who it describes	Limit and deductible	Dated
VouchMedian	About $2,000 a year	Vouch’s tech clients with a $1M limit	$1M per claim and in total	16 Jul 2026
InsureonAverage	$110 a month (about $1,320 a year); annual costs range from about $500 to over $9,000	Small IT and tech businesses that bought through Insureon, mostly under five employees	$1M/$1M, $2,500 deductible	28 May 2026
InsureonAverage	$126 a month ($1,516 a year)	Small SaaS businesses that bought through Insureon	$1M/$1M, $2,500 deductible	24 Jun 2026

Cyber

Source	Price	Who it describes	Limit and deductible	Dated
VouchMedian	$2,755 a year	Vouch clients with standalone cyber policies	Not stated for the median; customer contracts often require $2M, $5M or $10M	20 Oct 2026
InsureonAverage	$179 a month (about $2,150 a year); annual costs range from about $650 to over $9,500	Small IT and tech businesses that bought through Insureon	Not stated	28 May 2026
InsureonAverage	$129 a month ($1,552 a year)	Small businesses in all industries that bought through Insureon	Limits typically $1M to $5M	24 Apr 2026

D&O

Source	Price	Who it describes	Limit and deductible	Dated
VouchMedian	$6,000 a year	D&O policies Vouch bound in the past 12 months	Varies by stage: often $500K to $1M at seed, $2M to $3M at Series A	6 Aug 2026
InsureonTypical	$428 a month (about $5,140 a year)	Small technology businesses that bought through Insureon	Limit not stated; average deductible $2,500	7 Jul 2026

How price grows with your company

Tech E&O, median a year, by revenue

Under $1M$1,600
$1M to $2M$3,500
$2M to $5M$5,400
$5M to $10M$9,600
Over $10M$14,400

Vouch clients; higher bands may include higher limits. Vouch, 16 Jul 2026

D&O, median a year, by capital raised

Up to $1M$3,300
$1M to $2M$3,900
$2M to $5M$5,400
$5M to $10M$7,400
$10M to $20M$10,500

Vouch clients, policies bound in the past 12 months. Vouch says capital raised is the biggest D&O price factor for startups. Vouch, 6 Aug 2026

Cyber, median a year, by revenue

Under $1M$2,082
$10M and over$9,202

Vouch clients with standalone cyber; Vouch says revenue is the biggest cyber price factor. Only the lowest and highest bands are shown here. Vouch, 20 Oct 2026

By funding stage

Stage	Estimate	What it covers
Pre-seed and seed	$2,000 to $4,000 a year	General liability, tech E&O and cyber at $1M limits
Series A	$10,000 to $25,000 or more a year	A fuller program; D&O alone can be $5,000 to $10,000
Growth (Series B and later)	$30,000 to over $100,000 a year	All lines, with limits often $5M or more

Corgi’s guidance, not drawn from a stated customer sample; Corgi says the limits, retentions and terms are illustrative. Corgi, 18 Mar 2026

Does AI make your insurance cost more?

One broker expects so, but no insurer we track says by how much. None of the carrier pages we read says that using AI changes a standard tech E&O or cyber quote, and AI cover is priced inside the policy it is attached to. Vouch says AI companies should expect to budget more than SaaS companies with a similar headcount, and lists what drives the difference: using AI in high-stakes decisions such as healthcare or lending, reliance on sensitive data, exposure to regulators, third-party training data, claims that are hard to defend because the model is opaque, and new kinds of claims such as algorithmic bias. [source]

Expect underwriters to ask how you use AI. Our AI underwriting questions checklist lists what they ask, and answering well is the one price factor you control in the short term.

What sets your price

Revenue and size: Vouch calls revenue the biggest factor for cyber, and company size by revenue one of the strongest predictors of E&O cost. [1][2]
Capital raised: the biggest D&O factor for startups, according to Vouch. [1]
What you do: Vouch says line of work has the biggest effect on E&O premiums, and Insureon says technology businesses pay far more for D&O than retailers. [1][2]
Limits and deductibles: higher limits cost more, and a higher deductible lowers the premium. [1][2]
Security controls and the sensitive data you hold weigh heavily in cyber pricing. [1][2]
Claims history. [1][2]
Customer contracts: they can require higher cyber limits, such as $2M, $5M or $10M. [1]

Where prices are heading

Marsh Global Insurance Market Index: average change in US renewal rates from the same quarter a year earlier.

Quarter	Cyber	D&O	Financial and professional lines
Q3 2026	0%	+1%	+1%
Q2 2026	−2%	+1%	+1%
Q1 2026	−2%	−3%	−2%
Q4 2025	−3%	—	0%

Sources: Marsh, Q3 2026 (21 Oct 2026); Marsh US rates page, Q3 2026; Marsh, Q2 2026 (23 Jul 2026); Insurance Journal on Marsh D&O figures, 23 Jul 2026; Marsh, Q1 2026 (22 Apr 2026); Captive.com on Marsh Q4 2025, 6 Feb 2026. The Q2 and Q1 2026 D&O figures are Marsh’s as reported by Insurance Journal; the Q4 2025 row is Marsh as reported by Captive.com.

US public-company primary D&O rose an average 0.6% in the second quarter of 2026, the first increase after 16 quarters of decreases, according to Aon data reported by Risk & Insurance. Risk & Insurance, 10 Aug 2026
US brokers reported cyber premiums down 3.2% on average in the second quarter of 2026 in the Council of Insurance Agents & Brokers survey. Insurance Journal, 20 Aug 2026
WTW puts North American cyber rate changes between a 5% decrease and a 5% increase. Insurance Journal on WTW, 5 Oct 2026

How to read these numbers

A median is the middle price; an average can be pulled up by a few large policies. Insureon’s pages call their figures averages but say they come from the median policy, so treat them as typical prices.
Each figure describes a different group. Insureon’s customers are mostly firms with fewer than five employees; Vouch’s are mostly venture-backed startups. Do not mix them.
The limit matters as much as the price. Compare quotes at the same limit and retention.
Not on this page: Hiscox’s “starting at” prices, which it calls illustrative, and older benchmark reports with no stated date.

To see who sells AI cover, start with the register or compare startup insurers. For what to buy at each stage, see insurance for AI startups.

Questions

How much does tech E&O insurance cost for a startup?

Vouch says its tech clients with a $1M limit pay a median of about $2,000 a year, rising with revenue to $14,400 for companies over $10M. Insureon says small IT businesses that bought through it pay an average of $110 a month, about $1,320 a year.

How much does AI liability insurance cost?

No insurer we track publishes a price for AI cover on its own. Most AI cover is an endorsement or module on a tech E&O or cyber policy, priced as part of that policy; Embroker, for example, adds its AI endorsement automatically to eligible quotes. Vouch says AI companies should budget more than SaaS companies of a similar size.

How much is D&O insurance for a startup?

Vouch reports a median of $6,000 a year across D&O policies it bound in the past 12 months, from $3,300 for companies that have raised up to $1M to $10,500 for those that have raised $10M to $20M.

Are insurance prices going up or down?

Mostly flat. Marsh's index shows US cyber rates flat in the third quarter of 2026 after 13 quarters of declines, and US D&O up 1%. WTW puts cyber rate changes between a 5% decrease and a 5% increase.