Small businesses account for 99.9 percent “of all American businesses,” with more than 33.1 million small businesses employing a staggering 61.7 million Americans.1 There is nothing “small” about their import to the economy or the unique insurance questions facing them. Nor is there anything “small” about the potential exposure insurers of small businesses face. Small businesses are reported to “account for 43% of cyber attacks annually.”3 In 2020, reports indicate that over 700,000 small businesses suffered cyber attacks, resulting in “a total of $2.8 billion in damages.”4 The potential for cyber claims is likely to increase as instances of cybercrime continue to grow. 1 Ashlee Tilford, Small Business Insurance Statistics 2023, Forbes Advisor, Sep. 28, 2023, https://www.forbes.com/advisor/business-insurance/small-business-insurance-statistics/, and sources cited therein. 3 Nivedita James Palatty, 51 Small Business Cyber Attack Statistics 2023 (And What You Can Do About Them), Astra, October 26, 2023, https://www.getastra.com/blog/security-audit/small-business-cyber-attack-statistics/#:~:text=Small%20businesses%20account%20for%2043,%2425%2C000%20due%20to%20cyber%20attacks.

Source: Forbes January 26, 2024 19:21 UTC