Underestimating — Cyber Attacks & the Cost to Small Business

A Nationwide Agency Forward Survey should concern small businesses. Nationwide found that 40% of small businesses think a cyber attack will cost them less than $1,000.

Another 60% say it’s only going to take three months maximum to recover.

Nationwide president of commercial lines, Peter McMurtrie said the data shows a much different picture. The average cost is $15,000 to $25,000 to recover and it can take an average of 279 days.

“Small business owner concern around cyberattacks has risen 15% since the beginning of the pandemic, but most owners still don’t realize the extent of damage a cyberattack could have on their company and livelihood,” McMurtrie said. “Agents have strong opportunities to bust some of these common misconceptions around effects post-cyberattack and emphasize that there is greater risk than just loss of funds – business reputation is at stake.”

• *48% of small business owners say they’re ready to prevent an attack
• *However, just 56% offer any kind of yearly cyber security training
• *Under 25% will test their employees by sending a phishing email
• *Only 28% of small business owners have cyber insurance
• *However, 71% of middle market business owners do

   

  Nationwide also checked in with agents selling commercial lines.

   

• *70% say their clients are worried about a cyberattack
• *But less than half discuss those concerns with their customers