Smaller Doesn’t Mean Safer from Cyberrisk
Small businesses are increasingly concerned about cyberrisk, but the Insurance Information Institute and J.D. Power 2019 Small-Business Cyber Insurance and Security Spotlight SurveySMfinds many still are reluctant to insure against it. Based on a survey of more than 500 small business leaders, insurers, and insurance service providers, this paper addresses their continued hesitation and discusses cyber-related loss trends and how firms and their insurers are addressing these perils.
While cyberattacks against large enterprises, compromising massive amounts of personal customer data, continue to consume media attention, small-business leaders would be well- advised to focus on the evolving risks targeting their companies.
According to the Insurance Information Institute (I.I.I.) and J.D. Power, 12 percent of businesses that responded had experienced at least one cyber incident in the past year, up from 10 percent in 2018, and 75 percent said they believe the risk of being victimized by a cyberattack is growing at an alarming rate – up from 70 percent in 2018. Nevertheless, the survey found that getting small companies to purchase coverage remains a challenge.