CyberPolicy, the world’s first online cyber insurance marketplace, this week released new findings on the state of cyber insurance within the small and medium-sized business (SMB) market. Interestingly, although being typically reserved for large enterprises with ample capital, the cyber insurance market has experienced significant growth across SMBs over the past year.
This surge is due to an increase in affordability, accessibility and compliance requirements. Furthermore, the rise in cyber attacks against SMBs is making organisations realise the importance of implementing cyber contingency plans.
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According to the report, SMBs are demanding higher cyber insurance limits and extended coverage. Many CyberPolicy customers also want higher insurance limits — 90% of SMBs are purchasing policies with coverage limits between $1 and $5 million.
Cyber insurance is a crucial component for third-party vendor relationships. Nearly half of SMBs cite contractual requirements as being the main reason for getting cyber insurance.
Cyber insurance premiums are decreasing too, this is due to the growing customer base. The average monthly premium in April 2017 for a $1 million limit policy was $271 per month. In June 2018, the same $1 million policy limit, but with more comprehensive coverage, went for nearly $200 less per month ($77/month).
“With more than 30 million SMBs in the U.S., the stability of our economy depends on every business — not just big corporations — understanding that the need for cyber insurance is real,” said Keith Moore, Founder and CEO at CyberPolicy. “It’s our mission to help educate and serve the growing SMB market, and with this report we’re providing full transparency into crucial market trends that will help businesses of all sizes and industries best prepare for and secure their future.”