Cyber risks are the top concern among businesses of all sizes.
Of the 1,200 business leaders who participated in an insurer-sponsored survey, 55% said they worry some or a great deal about cyber risks, ahead of medical cost inflation (54%), employee benefit costs (53%), the ability to attract and retain talent (46%) and legal liability (44%).
The Travelers Companies, which has been commissioning the 2019 Travellers Risk Index in 2014, said this is the first time in its survey’s history that cyber has been the top concern among businesses of all sizes.
As concerns about cyber threats have grown, a higher percentage of businesses reported taking proactive measures to safeguard against cyber risks; however, a sizable number have not implemented such preventive best practices. The steps taken by respondents include:
- Purchasing a cyber Insurance policy (51% of survey participants, up from 39% last year).
- Creating a business continuity plan in the event of a cyber attack (47%, up from 38%).
- Taking a cyber risk assessment for themselves (49%, up from 45%) and their vendors (41%, up from 37%).
- Updating computer passwords (74%, up from 71%).
Tim Francis, Enterprise Cyber Lead at Travelers, said that while more businesses are taking steps to prevent a cyber event, “it’s still alarming that nearly half don’t have the proper insurance coverage.”
Tim Francis, Enterprise Cyber Lead at Travelers, said that while more businesses are taking steps to prevent a cyber event, “it’s still alarming that nearly half don’t have the proper Insurance coverage.”
Given that a single Cyber attack can put a company out of business, Francis said “taking the threat seriously and implementing a risk management program that addresses possible exposures can help a company not only avoid an attack but also recover from one as quickly as possible.”
Since 2015, the percentage of small business respondents that have suffered a Cyber attack has tripled, from 4% to 12% this year. Increases are also being reported among medium-sized companies (10% in 2015 to 20% this year) and large businesses (from 19% to 33%).
“More companies are experiencing cyber attacks,” Francis said. “The cost of a single breach to a small business can easily reach a substantial amount of money on top of the time it takes to restore the business, so protecting a company’s assets with a Cyber Insurance policy is critical.”
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