We just released our latest eBook, The State of the Cyber Insurance Market for SMBs, to help small to medium-sized businesses understand the importance of cyber insurance.
The market for cyber insurance is growing rapidly. In fact, cyber insurance premiums were forecasted to triple between 2014 to 2020. Organizations of all sizes from SMBs to enterprises need coverage as part of their holistic risk management. Should your business experience a data breach, your cyber insurance company can bear some of the costs to reduce your financial burden.
Cyber insurance is designed to protect businesses against cyber risks. Coverage can differ from policy to policy. You can check out our coverages page to see what a comprehensive policy should include. Because cyber risks can be unpredictable and data breaches are more a matter of “when” not “if”, cyber insurance is the ultimate safety net. The market will only continue to innovate as it is still a newer category of insurance.
Profiles of SMBs
Our online cyber insurance quote questionnaire has been live for over a year now, and within that time frame, hundreds of SMBs have filled out the form. We’ve anonymized the results so that you can get a snapshot of the profiles of SMBs seeking cyber insurance in the United States.
The majority of SMBs seeking cyber insurance have 50 or less employees. If you think your SMB is too small to be a target for cyber criminals, think again. Besides inquiring about cyber insurance as a safety net, SMBs also look to buy as part of a contractual obligation. Many enterprises are making it mandatory for the third-parties they work with to have cyber insurance coverage.
Our questionnaire also asks about data stored and what security policies you have to see if you’re putting rules and guidelines in place to protect company data, assets, systems, and other IT resources. This helps us assess your cyber risk. For example, we found that 80% of the SMBs that filled out our questionnaire store third party data, but only 25% have a third party security policy. The most common policies in place were data security, backup retention, and acceptable use policies, but only a little over half of the SMBs had these.
What SMBs are doing right: the majority are encrypting both stored and in-transit data. 88% of SMBs are also backing up their data. Of those that do, 80% backup their data daily and 16% of them backup their data monthly.
Our full eBook includes more insight into the typical SMB profile for cyber insurance and takes a closer look at what cyber insurance is and why you need it. Download the eBook here to learn more.