Why Small Businesses Need Cyber Insurance

by | Jul 2, 2021 | Market Trends

With cyberattacks, especially ransomware attacks, on the rise, cyber insurance has become more important in helping keep small businesses safe.

It is estimated that 43% of cyber attacks are aimed at small businesses, but only 14% of small businesses are ready to defend themselves. Although 88% of small business owners felt their business was vulnerable to a cyberattack, many do not have the resources to protect their company.  

Small businesses need to identify and understand common threats to their operations, assess their business’ risk exposures, and prepare themselves before a cyber incident occurs. Cowbell’s cyber insurance policies include many tools and resources to help policyholders keep ahead of modern threats, even as they strive to move and expand their business online.

Here are a few risk factors small businesses should consider:

1. Statistics. A small business is hacked roughly every 19 seconds, and 25% of small businesses filed for bankruptcy protection after a data breach. These numbers highlight how small businesses are at higher risk from cyber threats.

2. Internal Errors. Human error and software vulnerabilities are constant threats to a business’s security operation. Researchers from Stanford University found that 88% of data breach incidents are caused by employee mistakes, which shows the lack of cybersecurity awareness among many working professionals.

3. Underestimated Risks. Although nearly half of cyberattacks affect small businesses, many are unaware of the risk, simply because cyber incidents often go unreported at small businesses. Many also remain in denial, seeing larger companies as more probable targets because of media coverage focusing on major incidents at known brands.

Small businesses are vulnerable to cyber threats, but cyber insurance can keep them safe and help them recover. Cowbell Cyber makes cyber insurance easy by delivering customized, standalone cyber policies with robust coverages tailored to the unique needs of any business. Our AI-powered customized policies bring value through continuous risk assessment, risk improvement resources, and cybersecurity training for employees.

If you’re an insurance agent or broker, take the necessary steps to protect your client’s business. Contact us today at ntrapvrf@pbjoryyplore.nv to learn more.

If you’re a business researching your needs for cyber insurance, feel free to sign-up for a free risk assessment, and you’ll get immediate answers to questions such as, “is my business more or less secure than my peers,” and receive immediate recommendations to fix potential weaknesses that we have identified.

Related Posts

Cowbell Blog

Grow your cyber IQ with our insights into cyber insurance, cyber risk, and cyber security.

See How Cowbell Can Protect Your Business