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According to AdvisorSmith, 69% of small business owners surveyed said that they have concerns about falling victim to a cyberattack. However, despite this growing issue, only 17% of small to medium-sized businesses (SMBs) said that they have some form of cybersecurity insurance.
Last year, 72% of SMBs in the U.S. purchased a cybersecurity insurance policy after experiencing or hearing about a cyberattack. Source: AdvisorSmith.
And while cybersecurity and ransomware attacks have become a growing issue among SMBs, a shocking number of owners still aren’t buying cyber insurance to help them mitigate risks. In fact, 19% of SMBs surveyed said that while they know about cybersecurity insurance, they have no plans to buy a policy.
Wondering why that is?
According to the survey, 40% of SMBs stated that they simply need to do more research before deciding on a policy. In fact, 8% of SMBs surveyed said that they purchased cybersecurity insurance based on the recommendation of a broker or agent.
If you’re an insurance professional with SMB clients, this insight presents you with a prime opportunity to educate your policyholders on the importance of having a cybersecurity insurance policy and to provide them with various coverage options so they can make an informed decision.
The following presents additional insights into why some SMBs are putting off buying cybersecurity insurance. These can help you be better prepared when discussing this important coverage. Of the SMBs surveyed:
34% believe that cybersecurity insurance is too expensive. 64% aren’t familiar with what cybersecurity insurance is and how it works. 39% are confused about exactly what a policy covers.
Conclusion
“[The] rapid, widespread adoption of working-from-home tools has put considerable strain on security teams, who must safeguard business networks without making it harder for employees to work. Source: Kaspersky.
By 2025, the cybersecurity insurance market is expected to become a $20 billion industry. As we move into 2023, now is the time to start thinking about creating marketing campaigns that focus on presenting cybersecurity insurance to your business clients.
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