Nearly a third of small business owners rank cyber crime, data breaches and fraud as a most concerning risk, particularly after covid disruption forced many to shift to digital, yet just 7% have cyber insurance, according to BizCover’s 2022 Small Business Bravery Report.

The survey of 1327 SMEs across 20 industries found almost two thirds of small business owners are optimistic their company will grow or recover in 2022, yet the research highlighted a significant gap between risk awareness and mitigation strategies.

“Identifying potential risks is an important step in any business strategy but it’s concerning to see some business owners have not taken the next step: mitigating that risk so they have more peace of mind,” BizCover said.

Nearly a quarter developed new products or services to meet market opportunities since covid while 17% of those surveyed developed new online solutions or adopted new technology. City-based organisations in the Accounting, Bookkeeping & Taxation, Consultant and Information Technology industries were particularly concerned about potential disruption from these tech-related issues.

The next two major worries for small business owners are personal liability as a director or manager (26%) and losing key staff members (22%).

Only 2% of businesses had Key Person insurance to help replace revenue and recruitment costs if their best people leave, and though 67% had Public Liability cover, especially those in Hospitality, Manufacturing and Trade, BizCover says “the fact a third of small businesses don’t have Public Liability insurance is still concerning.” Architecture, Engineering & Technical Services and Health Services were least likely to take that cover.

“These businesses are built on giving professional advice, which opens them up to potentially being charged with negligent acts or omissions regardless of how accidental they might be.”

Across Australia, 38% of owners were cautiously optimistic their business will grow or recover, while 24% were very optimistic and just 6% pessimistic.