“Think you’re covered? Cyber insurance can have big gaps”
A major cyberattack is a bit like a major hurricane: You don’t really understand the extent of the catastrophe until you’ve experienced it firsthand.
Small- and medium-sized businesses, sadly, are learning that lesson the hard way.
Forty-three percent of cyberattacks are targeted at small businesses, according to Verizon’s 2019 Data Breaches Investigation Report, and nearly 70 percent of small- and medium-sized businesses report experiencing an attack, according to the Ponemon Institute, which studies cybersecurity.
“The thing that you have to start with is understanding your risk profile,” said John Atkins, an insurance attorney at Thompson & Knight. “You can’t just go to a broker and ask for an off-the-rack cyber policy and expect to be covered for those specific risks.”