Just one-third of small and midsize businesses (SMBs) are aware that cyber insurance exists, despite a rising number of cyberattacks - and successful data breaches. Meanwhile, 52 percent of SMBs are "very" or "moderately" interested in purchasing some type of cyber insurance, according to a recent survey by Software Advice.
Some SMBs may have limited cyber coverage, which focuses on business impact related to network loss - and similar business activities - but don't include other financial ramifications from a data breach.
"I would define [its] state ... as 'infant' or 'forming,'" said Bob Rudis, security data scientists at Verizon Enterprise Solutions. "There have been companies selling versions of cyber insurance for a few years, but there is no same standard of practice for vetting a potential company, [sharing] claims data or historical (actuarial) data or even a consensus on pricing models."
Subsequently, cyber insurance is now a booming market, as more business leaders want to make sure they are better able to financially withstand a data breach.