Three Common Myths about Cyber Security – What Small and Midsize Businesses Should Know as Cyber Risk Grows

Business Wire

New Relation Insurance Services White Paper Explains Why Lack of Insurance Against Cyber Threats Can Be Catastrophic

WALNUT CREEK, Calif.--(BUSINESS WIRE)-- Relation Insurance Services, a premier insurance brokerage that offers superior risk-management, benefits, and TPA-consulting services through its family of brands across the U.S., today announced a new white paper dispelling the three most common myths of small to medium sized businesses (SMBs) regarding the cyber security insurance market. “An Overview of the Cyber Insurance Market” is the result of research into overall cyber security measures, or the lack of, by SMBs.

“There is a lack of awareness by SMBs regarding the impact a cyber-attack can have on their organization,” said Stephanie Reilly, Vice President, West Coast Risk Management Practice, Relation Insurance Services. “According to CyberSense small businesses account for 43 percent of cyber-attacks. It can devastate a business, never to recover. In addition, most general liability insurance policies were not designed to address these breaches, and coverage is limited. Our goal is to help educate SMBs to better protect the most vulnerable businesses.”

Cybersecurity Ventures has predicted that damages from cybercrime will hit $6 trillion annually, by 2021. Nevertheless, SMBs continue to ignore the looming threats, and are not taking the necessary steps to protect the business. Our white paper takes a closer look at the three most common myths that often prevent smaller enterprises, as well as Mom and Pop shops, from including cyber security coverage in their business-insurance portfolios. These are:

Myth 1: “We are too small to be a target.”
Myth 2: “Our exposure is not that great.”
Myth 3: “Our existing insurance coverage protects us.”

“Businesses of all sizes are facing the consequences from cybercrime,” said Steven Billings, Senior Vice President, Relation Insurance Services. “This is new territory for the business world – what was once a one-off, has become almost routine. Consequently, it is a new risk environment for the insurance world with many companies now offering cyber coverage. As such, underwriters are increasingly carving this type of coverage out of conventional policies, in favor of cyber-specific policies, and pricing is all over the map. It is critical for companies to carefully evaluate their policies and invest the time to understand what they’re getting to ensure it’s appropriate for the company.”

Click here to download your free copy of the entire white paper.

About Relation Insurance Services

Relation Insurance Services, formerly Ascension Insurance, is a premier insurance broker that offers superior risk-management and benefits-consulting services through its family of brands across the U.S. It is ranked by Insurance Journal within the top 45 largest agencies in the country by revenue and has nearly 500 employees in more than 30 locations nationwide. Relation is a privately held corporation; alongside its private-equity partners, Parthenon Capital and Century Capital Management, the company expects to continue its strong growth trajectory through additional acquisitions and organic growth. Visit relationinsurance.com for more information.