Small and medium-sized businesses (SMEs) are not adequately protected against cyber attacks; only 16.8% of global SMEs report independently cyber insurance Although more than a third have experienced a cyber incident in the last three years Global Data.
The data and analysis firm stated that 34.7% of SMEs worldwide have experienced a cyber incident in the last three years, underlining the widening protection gap as digital threats become more frequent and complex.
In Europe, German SMEs are found to be particularly at risk, according to GlobalData’s 2025 SME Survey; 40.3% reported experiencing a cyber incident during the same period.
Cyber insurance is still viewed as unnecessary by small businesses, with limited awareness of cyber risks, affordability challenges and rapidly changing threat landscapes continuing to put pressure on adoption, GlobalData said.
“Low cyber insurance rates among SMBs suggest that many small businesses are still overlooking insurance coverage, possibly because they do not understand the value of such policies,” he said. Beatriz BenitoChief insurance analyst at GlobalData.
While some SMBs have cyber protection through broader business insurance policies, standalone cyber coverage remains low, raising concerns that many smaller companies may be underinsured.
The risk is particularly serious because SMEs often do not have the same levels of cybersecurity defenses, incident response capabilities and financial resilience as larger companies, making them more attractive targets for cybercriminals.
GlobalData said a major cyberattack could have a serious financial impact on a large company, but for a smaller business, an unexpected influx of cash could lead to instant bankruptcy if adequate insurance protection isn’t in place.
Access to cyber insurance has also become difficult for many SMEs. Providers continue to price policies cautiously as they grapple with rapidly evolving risks, limited historical claims data and the need to maintain profit margins.
Benito said insurers need to make cyber coverage more accessible to small businesses by supporting continuous risk monitoring and encouraging stronger digital practices.
GlobalData’s 2025 SME Survey was conducted through an online panel of 2,054 SMEs in Brazil, China, France, Germany, India, Italy, Malaysia, Mexico, Saudi Arabia, South Africa, Spain, United Arab Emirates, United Kingdom and United States.
