Senators Shelley Moore Capito (R-W.Va.) and John Hickenlooper (D-Colo.) reintroduced the bipartisan Insure Cybersecurity Act to safeguard small businesses against rising cyber threats. According to Accenture’s Cybercrime study, nearly 43% of cyber-attacks target small businesses, yet only 14% feel adequately prepared despite spending between $826 and $653,587 per incident. As many know, 95% of breaches stem from human error.
Clearer Cyber Insurance Policies for Small Businesses
The bill, if passed, would task the National Telecommunications and Information Administration (NTIA) with forming a specialized working group. That group would develop clear guidelines for cyber insurance policies, ensuring transparency for insurers, brokers, and clients.
Senators Stress the Need for Action
“Cyberattacks continue to escalate, threatening businesses of all sizes,” remarked Senator Capito. “Our Insure Cybersecurity Act offers a practical solution to clarify complex insurance policies, easing the financial burden on victims and enabling businesses to stay operational during crises.”
Addressing Industry Challenges
Senator Hickenlooper added, “For small businesses, understanding cyber insurance is crucial. Ambiguous policies leave many vulnerable after an attack. This legislation will ensure clarity and resilience for businesses facing cyber threats.”
Mark Montgomery, Executive Director of CSC 2.0 and former head of the Cyberspace Solarium Commission (CSC), endorsed the bill, stating, “This legislation remains absolutely consistent with the Cyberspace Solarium Commission recommendations, and I believe the Working Group proposed in this legislation can help tackle some of the insurance industries’ underlying problems in cyber policies like a lack of standard terminology and lack of clarity in coverage limits.”
