Hanover Specialty’s new report reveals that small- and mid-sized businesses generally lack preparedness for the increasing threat of a cyberattack, even though they have high confidence in their organization’s cybersecurity posture.
The report, titled “2023 Cyber Resiliency Report,” found that only 7% of small- to mid-sized businesses think it’s very likely that a cyberattack will impact their business in the next 12 months. However, nearly half report their business, suppliers, or customers were impacted by a data breach or cyberattack over the last 12 months.
The report also found that one in two small- to mid-sized businesses has not conducted a business-wide cyber risk assessment in the last 12 months. This suggests that many businesses are unaware of their cyber risk exposure.
The report’s findings highlight the important role independent insurance agents can play in helping businesses protect themselves from cyberattacks. It notes agents can advise businesses on risk management best practices, provide access to cyber insurance coverage, and help businesses develop incident response plans.
Key Findings
The report also found that most small- to mid-sized businesses engage in activities that raise the risk of a data breach or cyberattack. For example;
- 67% of businesses store business documents in the cloud.
- 64% of businesses access business email on personal devices.
- 33% of businesses connect business devices to public or unsecured Wi-Fi networks.
Business leaders also expressed concern about the risk of ransomware attacks. 71% of respondents said they are concerned about the destruction or corruption of business files and data.
The Hanover Specialty report’s findings are a reminder that cyberattacks are a serious threat to businesses of all sizes. It is important for businesses to take steps to protect themselves from the rise in cyberattacks, such as conducting regular cyber risk assessments, implementing cybersecurity best practices, and purchasing cyber insurance coverage.
What businesses can do to protect themselves from cyberattacks
- Conduct regular cyber risk assessments to identify and mitigate security vulnerabilities.
- Implement cybersecurity best practices, such as using strong passwords, multi-factor authentication, and security awareness training for employees.
- Purchase cyber insurance coverage to protect against financial losses in a cyberattack.
- Develop an incident response plan to outline how the business will respond to a cyberattack.
How independent insurance agents can help businesses protect themselves from cyberattacks
- Advise businesses on risk management best practices.
- Provide access to cyber insurance coverage.
- Help businesses develop incident response plans.
Source: 2023 Cyber Resiliency Report