Cyber risks are changing quickly, but for many small and mid-sized businesses, cyber insurance isn’t keeping up. Brian Clifford, president of the West Region and executive risk at Highstreet Insurance Partners, shared his thoughts on this challenge in an interview. He said the industry still struggles to bring clear and urgent solutions to these smaller companies.
Clifford explained that the cyber market is always shifting. What was true six months ago might not apply today. And predicting what will happen in six months is nearly impossible. This uncertainty makes it hard for companies like Highstreet, which mainly serve small and mid-sized businesses, to close the gap in protection. Many of these businesses remain underinsured or completely uninsured against cyber threats.
Despite frequent news about cyberattacks, data breaches, and ransomware, Clifford hasn’t seen a big jump in demand for cyber insurance among smaller businesses. He pointed out that none of the recent high-profile cyber incidents have caused a flood of calls from worried clients. While some business owners have taken notice when a similar company nearby was hacked, there hasn’t been a widespread moment that pushed many to take action.
He sees this as both a problem and an opportunity. The industry has failed to turn the growing cyber threats into a clear message that urges businesses to get insured. Clifford wonders why, despite the money lost and business interruptions caused by cyberattacks, more companies haven’t been convinced that they need coverage.
One major hurdle is education. Many small businesses find it hard to decide how to spend their limited budgets on cyber protection. Should they invest in prevention tools or insurance? Clifford says this leads to split, often ineffective strategies. He believes a balanced approach, combining prevention and insurance, works best.
Many small business owners still treat cyber insurance as optional. Clifford contrasted this attitude with how businesses view insuring their physical assets. No one skips insurance on their building, but many choose not to insure their cyber risks. This mindset slows progress and puts businesses at risk.
Clifford believes the biggest chance for growth in cyber insurance lies with small and mid-sized businesses. If the industry can improve education, prevention, and tailor insurance for these clients, it could open a huge market. However, the insurance products themselves can be confusing. Policies often have detailed terms that are difficult for small business owners to understand quickly.
This makes the role of insurance brokers very important. Clifford’s job includes helping clients understand their exposure and striking the right balance between prevention and insurance for a full cyber defense.
The stakes are high, he said. Studies show over 70% of companies hit by cyberattacks don’t recover. Small and mid-sized businesses are key parts of their communities, so losing them could have wider effects.
Clifford urged insurers, managing general agents, and brokers to rethink how they communicate the value of cyber insurance. He admitted current messages often don’t get through. It’s up to industry leaders to find new ways to explain why cyber coverage is essential—and to help protect these businesses before it’s too late.