In the digital age, your clients’ and your company’s information is one of your most valuable—and most vulnerable—assets. Cyberattacks no longer affect only large corporations: today, small and medium-sized businesses (SMBs) are among the main targets of cybercriminals, as many lack even basic security measures.
According to PurpleSec, the average cost of a data breach for an SMB can range between $120,000 and $1.24 million. Additionally, in 2023, ransomware attacks increased by 70% compared to the previous year, affecting more than 4,600 organizations—many of them small businesses (source).
This article explains how to protect your business data with practical, accessible, and effective strategies, and how cyber liability insurance can be your best backup in the event of an attack.
Why are small businesses being targeted?
Many SMBs in industries like construction, food service, retail, or professional services handle personal information, credit card numbers, client histories, and even financial data. Without robust protection systems, they become easy targets for:
- Phishing: attackers trick employees or owners through fake emails or messages that appear to come from legitimate sources, in order to obtain passwords, bank details, or other sensitive information.
- Ransomware: this type of malware locks access to files and demands a ransom—usually in cryptocurrency—in exchange for their release. It is one of the most frequent and destructive forms of attack.
- Unauthorized access: this occurs when outsiders gain access to your IT systems, either due to security flaws or weak passwords, putting critical information at risk.
- Loss of critical information: whether due to human error, technical failures, or cyberattacks, losing essential data such as client databases, invoices, or legal documents can have severe consequences for your business operations.
A single attack can disrupt your business, cause financial losses, damage your reputation, or even lead to legal action for failing to protect sensitive client data.
Case study: Michigan clinic closes after ransomware attack
Brookside ENT and Hearing Center, a small clinic with over 40 years of service in Battle Creek, Michigan, was the victim of a devastating ransomware attack. In 2019, cybercriminals encrypted all of their patient records, billing data, and appointment schedules. The attackers demanded a ransom in exchange for returning access to the files. With no guarantee the data would be recovered—and no cyber insurance to support them—the clinic’s owners decided not to pay and permanently closed the practice. The incident not only disrupted operations but also forced them into early retirement. (source)
Simple and effective strategies to protect your business
You don’t need a massive budget to begin protecting your business. Here are some key steps you can take right now:
- Train your team: ensure that you and your staff know how to recognize suspicious emails, malicious links, and unsafe practices.
- Update your systems: keep your software, browsers, and operating systems up to date. Updates include security patches that fix vulnerabilities.
- Use strong passwords and two-factor authentication: encourage long, unique passwords for each platform and enable two-factor authentication for email and billing systems.
- Back up your data regularly: set up automatic backups of your important information and store them in a secure location, preferably offsite.
- Limit access: not all employees need access to all information. Set user permissions based on job roles.
The role of cyber insurance: your safety net when things go wrong
Even with all precautions in place, attacks can still happen. That’s where cyber liability insurance becomes essential.
This type of policy can help cover:
- Data and system recovery costs: covers expenses for restoring lost data, repairing damaged systems, and resuming normal operations.
- Business interruption losses: compensates for lost income if your operations are halted due to a cyberattack.
- Legal expenses for data breaches: includes attorney fees, legal counsel, and other costs associated with lawsuits due to compromised sensitive information.
- Notification expenses for affected clients: many regulations require you to notify clients if their data is breached. This coverage covers communications, call centers, and public relations.
- Regulatory fines or penalties: if authorities determine there was negligence in protecting data, this insurance can help cover any imposed penalties.
For many small businesses, this type of coverage can mean the difference between recovery and shutting down.
Conclusion
Cybersecurity is no longer just a concern for large companies—it’s a priority for any business, regardless of size. Implementing basic protections and securing specialized insurance can save your business from significant losses.
At Rondon Brokerage, we help you find the right cyber insurance coverage for your business, with accessible options tailored to your industry. Contact us today to protect your data, your reputation, and your company’s stability.
