While data breach continues to be the primary concerns of SMBs (small and medium-sized businesses), a recent survey confirms that risks are shifting to Social Engineering Fraud (SEF) and Ransomware, and that more SMBs are buying comprehensive Cyber Risk Insurance (also called Data Breach, Privacy and Network Security insurance coverage).
According to the USI Insurance Services’ 2017 Cyber Security and Data Privacy Study (here), loss of confidential customer and employee data continues to be the cyber security biggest concern of SMBs. SMBs are defined in this survey as having revenues from $5.0 million to $100 million. The biggest concern for large companies is managing reputational and regulatory risks (includes loss of revenue following a cyber incident).
- 32% of SMBs confirmed being a target of impostor fraud (SEF): There is a massive uptick in impostor fraud incidents.
- 25% reported being targeted by Ransomware attacks, with losses under $250,000 for a majority of survey participants
- 32% reported experiencing a data privacy incident
These figures are consistent with a prior survey in 2017 which found that 53% of businesses have experienced a cyber attack in the past year (see here).
And the USI survey noted that 82% reported purchasing Cyber Risk Insurance. This is higher than the 27% we have reported previously (73% do not buy, see here), but the low end cutoff of $5.0 million in revenues excludes many small businesses.
Cyber Risk Insurance is an essential coverage for businesses of all sizes for protection from both criminal attacks and employee error; it should not be optional. Coverages vary widely, and a thorough review is essential to ensure that comprehensive coverage is in place.
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 and specialty insurance (E&O, D&O, EPL, Cyber Risk, Specialty). We excel at hard to place accounts. Review our expectations here.
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