Fewer Small Businesses Buying Cyber Liability Insurance
|PR Newswire Association LLC|
In the months before the story of Target's data breach broke, nine percent of non-IT insureon applicants requested Cyber coverage. In the months since, only five percent have. While the numbers themselves show that small-business owners aren't aware of the magnitude of the threat data breaches pose, the trend suggests they're being misled by media reports about the nature of hacking events.
"The reality is that small businesses get hacked far more often than big ones," said
Devine added that assuming a business won't be hacked because it's small is like assuming a bully won't steal another kid's lunch money because there's a bank on the corner. "There are small-time hackers, too," said Devine. "And they're going after smaller businesses."
This misperception of data breach exposure has been documented elsewhere, too. Verizon's 2014 DBIR Report notes that, while media reporting "makes quite a splash… from a frequency standpoint, [hacking] largely remains a small-and-medium business issue."
While the trend in small business data breach preparation is largely bleak, there is one bright spot in insureon's data: while small businesses have been less likely to buy
Insureon recommends that small businesses revisit their exposure and their state data breach laws.
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Insureon is the nation's source for small business insurance, offering General Liability, Professional Liability, Cyber Liability, and other products.