Is my business too tiny for hackers to care about? Why Cyber Insurance is a must-have!

Many small business owners think, “My business is too tiny for hackers to care about.” This is a dangerous myth. In fact, more than half of all cyberattacks hit small and medium-sized businesses because they’re easier to break into due to "lack of," or limited, security measures. Hackers love easy targets! In this article, we’ll explain why small businesses are at risk, share simple ways to build a stronger cybersecurity plan, and dive into why cyber insurance is a must-have to recover from attacks.

Why Hackers Go After Small Businesses

Hackers don’t usually pick one small business to attack on purpose. Instead, they operate more like kids throwing a massive net into the ocean, hoping to catch as many fish as possible. Their approach is indiscriminate, relying on volume rather than precision. They send out millions of deceptive emails, known as phishing attempts, set up fraudulent websites designed to trick unsuspecting visitors, or hide malicious viruses in seemingly harmless apps. Because these tricks are incredibly cheap to execute and require minimal effort on their part, hackers only need a few businesses to fall victim in order to turn a profit. It’s a strategy based on probability rather than targeting—a low-risk, high-reward system that ensures they always gain something, even if most businesses avoid the trap. In a way, it mirrors the business model of a lemonade stand, where success isn’t dependent on a single massive sale but rather on selling many small cups to different customers throughout the day.

 

An example of this strategy in action can be seen in a notable cyberattack from 2013. Hackers successfully breached a small heating and cooling company called Fazio Mechanical Services. While this business may not have seemed like a prime target on its own, it was connected to Target, one of the largest retail chains in the United States. By infiltrating Fazio Mechanical Services, the attackers gained access to Target’s network, ultimately stealing personal information from 110 million customers. Such large-scale breaches stemming from small businesses are rare, but they highlight a dangerous reality—smaller companies can unknowingly become a gateway to even bigger targets. Many hackers aren’t necessarily looking for high-profile attacks; instead, they aim to extract small amounts of money or data from numerous businesses. Each compromised computer, system, or device adds to their growing prize in this relentless “numbers game,” where volume is their greatest advantage.

Building a Strong Cybersecurity Plan

While you should discuss your needs with your IT vendor, here are a few easy steps that may help keep hackers out:

• Update Your Computers: Software companies send updates to fix weak spots. Hackers love old systems, so keep yours updated.

• Use Safe Email: Services like Gmail or Outlook block viruses for you. If you have your own email server, add a virus blocker.

• Limit Computer Control: Don’t let every worker have full power over their computer. This stops them from accidentally downloading bad stuff.

• Add Firewalls: Firewalls are like digital gates that block hackers. Get routers with tools to stop sneaky attacks.

• Be Careful with Downloads: Teach your team to avoid random apps or links. Only download from trusted websites.

• Stay Smart Online: Don’t open emails or files from strangers. Check website addresses to make sure they’re real. If something seems weird, don’t click!

• Back Up Your Files: Save copies of your important stuff often. Test your backups to make sure you can get your files back if a hacker locks them.

• Use Multi-Factor Authentication (MFA): Adding an extra layer of security, like a code sent to your phone, can make it much harder for hackers to get into your accounts.

Why Cyber Insurance Is a Game-Changer

Even with a great cybersecurity plan, hackers can still get through. They use easy tools or rent “hacker apps” to attack tons of businesses at once. If your business gets hit, the damage can be huge—stolen money, locked files, or angry customers. That’s where cyber insurance comes in. It’s like having a safety net to catch you if you fall.

Cyber insurance helps pay for the problems caused by an attack. It doesn’t stop hackers, but it makes recovery easier by covering costs like these:

• Data Breach Response: If hackers steal customer info, like names or credit card numbers, you’ll need to act fast. A cyber policy can pay for lawyers, sending letters to customers, and setting up credit monitoring to protect them. For example, if a phishing email tricks an employee into downloading malware that steals client data, your insurance can cover the cost of notifying everyone and fixing the mess.

• Ransomware Recovery: Some hackers lock your files and demand money to unlock them. This is called ransomware. A cyber policy can help pay the ransom or cover the cost of restoring your files from backups. Imagine a hacker locking your online store’s order system right before a big sale—insurance can help you get back to business without losing everything.

• Business Interruption Losses: If a cyberattack forces your business to close for a while, you lose money. Cyber insurance can cover the income you miss out on. For instance, if a virus crashes your bakery’s computer system and you can’t process orders for a week, insurance can help replace the sales you lost.

• Legal Costs and Lawsuits: If a hack hurts your customers or partners, they might sue you. Cyber insurance can pay for legal fees, settlements, or court judgments. Let’s say hackers use your system to steal client payment info, and those clients sue you for their losses—your policy can cover the legal battle.

• Public Relations Support: A big hack can make your business look bad. Cyber insurance can pay for experts to help rebuild your reputation, like creating ads or social media posts to show you’re fixing the problem. For example, if a hacked website leaks customer data and people start posting bad reviews, insurance can fund a campaign to regain trust.

• Regulatory Fines: If you break data protection rules (like privacy laws) because of a hack, you might face fines. Cyber insurance can help pay those penalties. For instance, if a breach exposes customer health records and you’re fined for not protecting them, your policy can cover the cost.

Without cyber insurance, these costs could wipe out your business. Think of it like car insurance—you hope you never need it, but if you crash, it saves you from paying for everything yourself. A good cybersecurity plan lowers your risk, but insurance steps in when the worst happens.

How We Can Help You

Not every cyber insurance policy is the same. Some offer basic coverage, while others are designed to fit your business needs. As an independent insurance agency, we partner with multiple insurance companies to find the ideal cyber insurance policy for you. We’ll sit down with you, learn about your business, and help you with a plan that protects what matters most to you. Don’t fall for the myth that your business is too small to be a target—hackers are ready to strike.

Contact us today to explore how we can safeguard your business with the right cyber insurance. Experience the employee-owned difference!