Selective Survey Finds Majority Of Small Businesses Lack Cyber Insurance Coverage
Tuesday, March 16th, 2021
A survey of small businesses conducted by Appalachian State University in coordination with Selective found that cybersecurity and technology issues were growing concerns for 44% of survey respondents due to the COVID-19 pandemic. Yet, only 20% of survey respondents have cyber insurance coverage.
The findings highlight an awareness gap among small businesses about the risks they face from cybercrime. Twenty-eight percent of data breaches impact small businesses, and phishing attacks account for over 30% of breaches, making them the biggest cyber threat for small organizations.1Cyber coverage from Selective can help small businesses manage and mitigate risks with comprehensive coverage options and cyber threat education.
The survey was created and distributed by the AppR.I.S.E. (Risk Initiative for Student Engagement) program in the Walker College of Business at Appalachian State University in collaboration with Selective to gauge the insurance impact that COVID-19 has had on professional office small businesses in the United States.
"The pandemic has brought countless challenges to small businesses, including a pressing need to protect against cyber threats. With so many employees working from home and using cloud- and web-based applications and personal email accounts, it's a playground for cyber-attackers," said Mike MacMullin, Vice President, Small Business. "Small businesses need a concerted approach to mitigate the detrimental financial and reputational risks associated with a data breach – cyber insurance coverage is an instrumental first step."
Selective deploys a multi-faceted approach to help business customers manage and mitigate cyber risks through comprehensive coverage options and cyber threat education:
-
Security Mentor online training modules are accessible on the MySelective self-service portal and mobile app to help businesses and their employees build knowledge about cybersecurity issues and hone best practices to protect data assets.
-
Cyber Liability and Data Breach Response Coverage provides broad cyber liability insurance protection at an affordable premium to meet each business's unique needs, with a $50,000 aggregate limit option starting at a flat annual fee of $50.
For the survey, AppR.I.S.E. gathered responses from 369 anonymous respondents from July 7, 2020, to August 30, 2020. To learn more about this study and read commentary from subject matter experts at Selective, visit here.