How Small Businesses Can Protect Themselves from Cyber Threats
Why Cybersecurity Matters for Small Businesses
Many small business owners believe cyberattacks only target large corporations. The reality? 43% of cyberattacks target small businesses, and 60% of those businesses shut down within six months of a breach. With hackers becoming more sophisticated, having the right cyber liability insurance is no longer optional—it’s essential.
Common Cyber Threats Small Businesses Face
Hackers use a variety of tactics to infiltrate systems. Here are some of the biggest threats:
Phishing Attacks – Fraudulent emails trick employees into clicking malicious links or providing sensitive information.
Ransomware – Cybercriminals encrypt your data and demand payment for its release.
Data Breaches – Personal customer data (credit card numbers, Social Security numbers) gets stolen and sold on the dark web.
Business Email Compromise (BEC) – Hackers impersonate executives or vendors to request fraudulent payments.
Denial-of-Service (DoS) Attacks – Overloading your system with fake traffic, shutting down operations.
How Cyber Liability Insurance Protects Your Business
Cyber liability insurance helps small businesses recover from attacks. Policies typically cover:
Legal Costs – If customers sue after a data breach.
Data Recovery – Paying for IT specialists to restore lost files.
Notification & PR Expenses – Covering the cost of alerting affected customers.
Ransom Payments – Some policies help negotiate and pay ransoms, though this is controversial.
5 Cybersecurity Best Practices for Small Businesses
While cyber insurance is a safety net, prevention is the first line of defense. Implement these steps to reduce your risk:
Train Employees on Cybersecurity – Teach staff to recognize phishing attempts and suspicious emails.
Use Multi-Factor Authentication (MFA) – Require two-step verification for all business accounts.
Keep Software Updated – Regularly update operating systems, antivirus software, and firewalls.
Secure Customer Data – Encrypt sensitive data and limit employee access.
Have a Cyber Incident Response Plan – Know what to do in case of an attack to minimize downtime and damages.
Final Thoughts: Are You Properly Covered?
Cyber threats are a growing concern, but with the right cyber liability insurance and security measures, small businesses can protect themselves from devastating financial losses. Not sure if your policy covers cyber threats? Contact Hixson and Malinowski Insurance Agency today for a risk assessment and policy review.
