California leads the nation in small to mid-size business cyber insurance adoption, according to a report released on Tuesday by CyberPolicy.
The report shows the highest annual premium in the state totaled more than $16,596, while the lowest annual premium was just $34, and that SMBs face substantial cyber risk, largely due to their limited resources and lack of employee training.
According to CyberPolicy’s report, California-based software development companies are leading the pack in prioritizing cyber insurance as an integral part of their cyber defense strategies.
California-based SMBs not in the technology sector are also actively purchasing cyber insurance, including the following industries (in order of most sales):
- Financial Services
- Healthcare Business Management
The CyberPolicy report shows the largest SMB purchasing cyber insurance in California has 100 employees, while the smallest has just one employee.
“Collective cyber insurance market growth is encouraging, especially given ever-rising threat levels and seemingly constant breaches,” Keith Moore, founder and CEO of CyberPolicy, said in a statement. “California’s cyber insurance adoption rates are particularly impressive, however, and the state’s dedication to proactive cyber defense is worth emulating. We’re committed to helping SMBs of all sizes, industries and locations acquire the cyber protection they need so they can focus on what’s most important: securely growing their business.”
CyberPolicy, which partners with insurers like Chubb and Hiscox to develop bundled cybersecurity offerings for small businesses, is a wholly-owned subsidiary of CoverHound Inc.
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