Small and medium-sized enterprises (SMEs) remain underprotected against cyberattacks, with only 16.8% of global SMEs reporting standalone cyber insurance despite more than a third experiencing a cyber incident in the past three years, according to GlobalData.
The data and analytics firm said 34.7% of SMEs globally experienced a cyber incident over the past three years, highlighting a widening protection gap as digital threats become more frequent and sophisticated.
In Europe, German SMEs were found to be particularly exposed, with 40.3% reporting that they had experienced a cyber incident during the same period, according to GlobalData’s 2025 SME Survey.
GlobalData said cyber insurance is still often viewed by smaller businesses as unnecessary, while limited awareness of cyber risks, affordability challenges and fast-changing threat environments continue to weigh on adoption.
“Low cyber insurance rates among SMEs suggest that many smaller businesses are still overlooking cover—possibly because they do not understand the value of such policies,” said Beatriz Benito, lead insurance analyst at GlobalData.
While some SMEs may 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 acute because SMEs often lack the same level of cybersecurity defenses, incident response capabilities and financial resilience as larger corporations, making them more attractive targets for cybercriminals.
GlobalData said a major cyberattack can have a severe financial impact on a large company, but for a smaller business, an unexpected cash drain could lead to immediate insolvency if adequate insurance protection is not in place.
Cyber insurance has also become difficult for many SMEs to access. Providers continue to price policies cautiously as they deal with fast-evolving risks, limited historical claims data and the need to maintain profit margins.
Benito said insurers need to make cyber cover more accessible for smaller businesses by supporting continuous risk monitoring and promoting stronger digital practices.
GlobalData’s 2025 SME Survey was conducted through an online panel of 2,054 SMEs across Brazil, China, France, Germany, India, Italy, Malaysia, Mexico, Saudi Arabia, South Africa, Spain, the United Arab Emirates, the United Kingdom, and the United States.