Small Business and Cyber Insurance Trends

Cyber insurance is now a hot topic and is increasingly being purchased by businesses of all sizes. Gone are the days when company executives could claim ignorance of cyber threats. On the flip side, agents can no longer avoid having a conversation with their insureds about cyber threats either. Unless, of course, their agency E&O policy has high limits.

Still, the adoption rate for cyber liability insurance among small businesses, which we define here as those with $25 million or less in revenue, has been historically low.

Numerous studies conducted over the last couple of years offer varying figures on the percentage of small businesses that have purchased cyber coverage, but we think the number of small businesses that purchase the coverage is around 15 percent to 20 percent.

The good news is that we have experienced a tremendous uptick in the buying of cyber insurance by small companies. Though some agents are becoming more adept at discussing cyber coverage, they face limited resources such as the availability of benchmarking data. Additionally, carriers are not sharing this information.

Continue reading and find out “Why Buy Cyber”

Source: Insurance Journal

Article Written By Christiaan Durdaller