Do Small Businesses Need Insurance for Cyber Attacks?
"One case in particular that stands out is the story of a small business owner who testified before this Committee last year. He owned an indoor go-carting facility in
"In our Committee's efforts to spotlight these serious and growing threats, it has become clear that need to think outside of the box as we work to thwart cyber attacks," added Chairman Chabot.
"The statistics show that there is a sufficient amount of work to be done on part of small companies and their operational strategies. Sixty-five percent of small businesses reported that they do not strictly enforce their password policy; this is the largest gateway for potential breaches. It is imperative that we, as small business owners, fully enforce the most intrusive method of sabotaging our networks, and therefore our business," said
"The role of insurance is continuously increasing as customers are now seeking industry feedback and risk insights. It has become more of a partnership, with businesses focusing on not just what happens post-breach and a loss being paid. They value having a stable of pre-vetted vendors available to them if they are impacted by a data or security event. They are also focusing more on pre-breach services to guide them through risk mitigation tools like technology assessments," said
"The number one reason [that small businesses did not purchase cyber insurance] given was that they claimed they did not need it. The second was the expense of coverage, and the third was that the process was too complicated and confusing. These results suggest that education is key to increasing the take-up rate of cyber insurance by small businesses, particularly given that 86% of the respondents stated that they store Personally Identifying or Personal Health Information," said
You can view the full video of today's hearing HERE https://smallbusiness.house.gov/components/redirect/r.aspx?ID=475086-70877720 and read the full witness testimony HERE https://smallbusiness.house.gov/components/redirect/r.aspx?ID=475087-70877720.
Read this original document at: https://smallbusiness.house.gov/news/documentsingle.aspx?DocumentID=400201
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