Small Business Cyber ​​Gap

Yvette Prichard says cyber insurance continues to be an area where small businesses have significant gaps in their insurance portfolios. “It’s a big risk; any business that does anything on a computer needs cyber liability,” said Prichard, who is president of small business, at Heffernan Insurance Brokers in Walnut Creek, California.

According to Hiscox’s Cyber ​​Readiness Report, which surveyed 5,000 cyber security professionals across the globe, including more than 500 small business professionals in the US, despite a 10% increase in median information technology budgets and a 24% increase in cybersecurity spending over the last 12 months, 59% of small businesses don’t use security awareness training.

Among the US businesses surveyed, the reported median cost of cyberattacks has decreased from $10,000 in 2022 to $8,300 in 2023. However, the median number of attacks has risen from three in 2022 to four in 2023.

Hiscox reported that US small businesses paid over $16,000 in ransom for each ransomware attack over the past 12 months due to cyberattacks. While over half (53%) of small businesses responding to the survey said they have either a standalone cyber insurance policy or coverage through another policy, preventative measures and training to avert attacks lag. Two