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Survey: 67% of SMBs don't know about cyber insurance, despite risks

Even with cyberattacks on the rise, 67% of SMBs are unaware cyber insurance exists

By Michael Hatamoto on Mar 19, 2015 05:50 pm CDT - 0 mins, 50 secs reading time

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.

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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.

Michael Hatamoto

ABOUT THE AUTHOR - Michael Hatamoto

An experienced tech journalist and marketing specialist, Michael joins TweakTown looking to cover everything from consumer electronics to enterprise cloud technology. A former Staff Writer at DailyTech, Michael is now the West Coast News Editor and will contribute news stories on a daily basis. In addition to contributing here, Michael also runs his own tech blog, AlamedaTech.com, while he looks to remain busy in the tech world.

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