Every year, over a third of small businesses suffer a cyber-attack or data breach, according to UK government research.

High-profile attacks on household names like M&S, the Co-op and Jaguar Land Rover have grabbed the headlines, but every business is at risk, particularly small businesses.

Thankfully, cyber insurance offers protection at a low cost.

Why small business are a target

Contrary to popular belief, small businesses are an easier target than large businesses, because they tend to have weaker cyber security.

Common methods include phishing, ransomware, business email compromise, and data theft.

Cyber criminals play a numbers game, spreading their net as wide as they can. They know that if they send 100,000 phishing emails, they only need one person or business to trip up. It’s small businesses where they have most luck.

As a small business owner storing customer data, you have a legal obligation, under UK GDPR laws, to secure that data.

An attack that accesses names, email addresses, phone numbers, payment details or sensitive information about your customers can lead to regulatory fines, lawsuits and reputational damage.

You need to ensure your business is protected.

How cyber insurance protects you from the financial losses

The financial implications of a cyber attack that results in a data breach are significant.

You could lose thousands of pounds in downtime, recovery and investigation; lost business revenue or ransom demands could cost you tens of thousands; and you will incur legal fees and customer notification costs on top.

Getting the right cyber insurance cover means your costs associated with system recovery, legal defence, customer notification and PR, and business interruption are covered. Some policies will even cover ransom payments.

Meeting your clients’ expectations

Aside from the legal obligations and the obvious benefits, having cyber insurance gives your clients the reassurance they need when they work with you.

In fact, many B2B clients, especially in tech, finance and healthcare require any businesses they work with to carry cyber insurance.

Get peace of mind today

No matter how confident you are in your cyber security, mistakes can happen.

Most cyber-attacks stem from human error: someone clicks on a bad link or is duped into allowing a criminal access to your system.

So, if your business stores client data or relies on a website or technology to operate, cyber insurance is the financial safety net you need.