Cybercrime is a growing concern among small business owners and managers, but few small businesses are aware of the need for cyber liability coverage, according to a new survey from Selective Insurance.
The survey, conducted by Selective in conjunction with Appalachian State University, gathered responses from anonymous respondents who actively own or manage small businesses.
The findings determined that concern over cybersecurity has grown significantly during the pandemic with 44% of owners and managers reporting they have been more concerned with cybersecurity and physical technology issues.
There is good reason for this, even beside headlines like CNA’s recent ransomware attack. Work-from- home practices forced on the business world have created “a playground for cyber attackers” said Mike McMullin, Vice President of small business at Selective. This is due to multiple factors including criminals finding cybercrime more profitable amid employees conducting work remotely from unsecured internet connections or devices.
Ransomware and phishing attacks have become the preferred method of theft for cybercriminals. Scammers are getting better at targeting victims and disguising their identities according to Robert McKenna, senior Vice President of enterprise strategy at Selective.
Ransomware, the malicious software that blocks a company’s ability to access its own data, has also advanced significantly in recent years with ransomware scammers now able to remove data from a target company’s database or network.
Each of these crimes has serious potential to damage a small business’s operations and all it takes is a single employee working from home or on an unsecured device or internet connection to create a weak spot for cybercriminals to exploit.
With that in mind, one would think cyber insurance would be a top priority for small businesses. Yet, only 20% of surveyed small businesses have cyber insurance coverage. Considering that 28% of data breaches are directed at small businesses, the lack of coverage creates a concerning gap.