SMEs underestimate the cost of cyber incidents

A new report from cyber insurance provider Cowbell shows that 90 percent of small business leaders underestimate the cost of a cyber incident.

The study of 500 SME leaders across the US shows that 50 percent of SMEs have experienced a significant cyber incident in the past 12 months and, of those, 90 percent say the attack cost more than they anticipated.

Looking at the sectors which suffer most attacks, computer hardware or software (68 percent), utilities, energy, water and telecoms (61 percent), and financial services or insurance (60 percent) are revealed as the top victims.

However, the report also shows that being prepared can help SMEs lessen the severity of, and even prevent, cyber incidents. 77 percent of SMEs with a cybersecurity strategy own a cyber insurance policy and these are nearly nine times more likely to feel highly prepared to respond to a cyber incident. In addition 91 percent of respondents with cyber insurance say that their insurance provider has helped them to avoid potential incidents.

"The SME market is vast and dynamic. With 33 million US organizations having revenue under $1 billion, this large segment is critically important to the health of the US economy," says Isabelle Dumont, SVP of marketing and technology partners at Cowbell. "As shown by this research, there is an opportunity to educate SMEs and insurance agents about the value of cyber insurance and accelerate adoption."

You can get the full report from the Cowbell site.

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