We have known that Cyber Risk Insurance is for smaller firms (see our prior posts here, here and here), and we have been providing comprehensive and inexpensive Cyber Risk Insurance to all types of smaller firms for quite a while. So it is nice to see confirmation of both the need and the buying trend in the media. In a recent Insurance Journal article, Smaller Firms Showing Interest in Cyber Liability Coverage, there is confirmation that the interest in buying Cyber Risk insurance is continuing to increase.
- Cyber liability insurance isn’t just for large corporations anymore.
- Demand for cyber liability insurance is now coming from middle-sized and small businesses
- The rising interest in cyber risk by medium and smaller firms also tracks with their increased awareness of their own vulnerability.
This is driven by media reports of large attacks, such as Target and Sony, and by increasing awareness that small and medium sized firms are vulnerable to cyber attack:
- Forty-four percent of small businesses reported being the victim of a cyber attack, with an average cost of approximately $9,000 per attack (here)
- Close to one-third of cyberattacks occur at companies with fewer than 250 employees, and 85 percent of actual data breaches occur at small businesses (here)
- One-third of all cyber-attacks now target SMBs, and of those small businesses that experience an attack, 60 percent will close within 6 months (here)
- Small businesses are the path of least resistance for cyber criminals (here)
Cyber Risk Insurance is an essential coverage for business of all sizes for protection from both criminal attacks and employee error; it should not be optional. Coverages vary widely and can be tailored to cover the cost of breaches, forensics, business interruption, crisis management and PCI assessments.
Tennant Risk Services is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services to our retail insurance agent clients in the placement of professional liability insurance (E&O, D&O, EPL, Cyber). We excel at Cyber Risk Insurance, including hard to place accounts.