My newest article on the growing threat of cyber insurance on small business has been published. Here is a sample:

THE CYBER-INSURANCE ISSUE

A relatively new but very consequential issue is currently terrorizing small businesses—comprising 99% of all U.S. firms. Small firms are at a significant disadvantage when attempting to do business with large enterprises or government entities. This is precisely because they are small and therefore unable to access the innate advantages of size, such as economies of scale, vendor leverage, and legal and lobbying resources. To exacerbate matters, this challenge lacks the “shiny object” appeal that typically captures the attention of traditional media companies, even for a fleeting moment. Any broad interest would, at least, put a momentary spotlight on a glaring complication.

Insurance companies are increasingly refusing to renew cyber-insurance policies for smaller enterprises. Despite their adherence to strong cyber-hygiene practices, many insurers are reluctant to underwrite policies for these businesses. Charles Weaver, CEO of MSPAlliance, highlighted this challenge, stating: “It has to be accepted and obvious that SMB providers can’t compete without insurance.”

The cost of entry for providing technology services to sectors such as government agencies, defense contractors, pharmaceuticals, manufacturers, financial services, and life sciences now hinges on having a robust cyber-insurance policy in place. Without such coverage, initiating business with larger enterprises becomes exceptionally challenging, if not entirely prohibitive.

To read the full article: https://www.dbta.com/BigDataQuarterly/Articles/Cyber-Insurance-A-Growing-Threat-to-Small-Business-Survival-169042.aspx?PageNum=2