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 dont 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


Source link: Insurance Journal — https://bit.ly/3BHEwjm

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The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


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