The biggest growing insurance line these days is cyber attack coverage. It’s a hugely competitive market for small businesses. Large companies are in a different ballpark.
Willis’ Matt Keeping keeps track of such things and said things are positive for insurance buyers and some softening conditions exist. But cyber coverage for point of service retailers is rising a minimum of 10% this year and — in some cases — hits a maximum of 125% at renewal
It’s much better to be a smaller business but smaller businesses aren’t buying. At least not now. And the reasons are ironic.
• A staggering 95% say they do not possess cyber insurance.
• But a very high percentage — 81% — of those surveyed a cyber attack is a huge concern.
Or so says Endurance International Group’s 2015 Small Business & CyberSecurity survey. The company’s CEO Hari Ravichandran said, “Cyber attacks aren’t just about targeting big business. In our current environment, it’s not a question of if your business will be targeted, but when. This should be a wake-up call to both lawmakers and the small business community that we must remain vigilant in protecting against these cyber threats.”
Here are other statistics from the survey:
• 94% occasionally or frequently think about cyber security issues.
• 31% of small businesses have experienced an attempted or actual attack.
• Just 11% have an IT person on staff or an outside IT consultant to handle cyber security.
• 83% of owners say they handle cyber security matters alone.
• 63% have security software or other measures installed to defend against cyber attacks.
• 42% of small businesses have invested in cyber security protections in the last year.
• 70% don’t believe the federal government is doing enough to fight cyber attacks.
• 83% support efforts by the federal government’s Small Business Administration to provide tax incentives or grants to small businesses that invest in cyber security protections.
Source links: insurancejournal.com and Carrier Management