Cybersecurity Opinions Examined in Collaborative Study
In a recent survey conducted by Coalition, it was revealed that many small businesses underestimate their risk of cyber attacks. The study, available at this link, found that 61% of small businesses believe they are too small to be attractive targets for cyber attacks, despite 77% of them having experienced at least one cyber attack in the last five years.
The Coalition's cyber insurance offerings are designed to help businesses manage and mitigate cyber risks. For small businesses, these offerings include access to a team of security experts and state-of-the-art cybersecurity capabilities. For middle market businesses, Coalition has expanded its offerings to include enhanced coverage and free access to advanced cybersecurity tools such as attack surface monitoring and an in-house response team of security experts.
The study also highlighted the misunderstanding of risk that leads to a lack of preparedness and cybersecurity investment among small businesses. This lack of understanding stems from factors such as limited resources, competing business priorities, lack of cybersecurity expertise, and a false sense of security. Small businesses typically face financial pressures, workforce limitations, and many competing priorities, diverting their attention and investment away from robust cybersecurity measures.
Hackers increasingly target small businesses because they often have weaker defenses, but many small business owners do not recognize this vulnerability or the severity of the threat they face. As small businesses adopt more digital tools, cloud services, and remote work arrangements without proportional security investments, they expose themselves more to attacks such as ransomware, phishing, and social engineering. However, they frequently underestimate the risk or fail to keep pace with necessary security updates.
The average cost of a data breach for SMBs can be devastating, with the average cost being $3.31 million. Despite this high potential cost, many small businesses fail to connect this with the need for preventative investment. The study found that 63% of small businesses allocate 10% or less of their total budget to cybersecurity, and 53% of small businesses spend 10 hours or less on cybersecurity per week.
In light of these findings, it is crucial for small businesses to invest in robust cybersecurity measures to protect themselves from potential attacks. Coalition's cyber insurance offerings can help businesses respond effectively to cyber incidents and provide peace of mind in the face of increasing cyber threats.
References
- Coalition. (2024). Small Business Cybersecurity Study. Retrieved from https://www.coalitioninc.com/blog/small-business-cybersecurity-study-june
- Verizon. (2025). 2025 Data Breach Investigations Report. Retrieved from https://www.verizon.com/business/resources/reports/dbir/
- Ponemon Institute. (2024). 2024 Cost of a Data Breach Report. Retrieved from https://www.ponemon.org/2024-cost-of-a-data-breach/
Small businesses should invest in cybersecurity to mitigate their risk, as highlighted in Coalition's Small Business Cybersecurity Study. The study revealed that despite having experienced cyber attacks, 61% of small businesses still underestimate their vulnerability to cyber risks, as their attention and investment are often diverted by competing business priorities and lack of expertise. To help manage and respond effectively to cyber incidents, Coalition offers cyber insurance with access to security experts and advanced technology.
