As reports of data breaches become commonplace, cyberinsurance products are quickly gaining popularity. But not all business segments are jumping on the insurance bandwagon.
According to a survey by Software Advice of small- and medium-sized businesses (SMBs) with 500 employees or less, it may be a question of awareness—only one-third of those surveyed knew that cyberinsurance even existed. Adoption of these products is even lower. Only 2% have cyber policies, even though 84% expressed some level of interest in purchasing one.
The problem is that, while cyberinsurance policies may be relatively expensive for an SMB, a single incident could very well put them out of business. Respondents indicated the most important factor they would need to consider before purchasing cyberinsurance would be their own liability for a breach. This was followed by understanding premium costs, the likelihood of a breach and the breadth of coverage.
Despite the risk, 19% said they would never purchase cyberinsurance unless they were required to do so.