Cyber-attacks can happen to any business, no matter the size. However, many business owners of SMEs may be forgiven for thinking that a cyber-attack is not an eventuality that they need to prepare for. In this article, we describe the cyber threats posed to SMEs and how to prepare your business, should the worst happen.
Cyber-attacks can happen to anyone
When it comes to the cyber security space, many business owners of small-to-medium enterprises (SMEs) may be forgiven for thinking that they are not on the radar of sophisticated cybercriminal networks and that a cyber-attack is not an eventuality that they need to prepare for. Ironically, it’s precisely this view that makes them such appealing and vulnerable targets.
With the world becoming increasingly dependent on technology, cybersecurity has become a necessity for small business owners, and cyber insurance is an essential tool that can help mitigate these risks and protect businesses from potential financial losses.
43% of all cyberattacks target SMEs
Small businesses are increasingly becoming targets of cyber-attacks - a study by Verizon shows that 43% of all cyberattacks target small businesses. These attacks can have significant financial implications for small businesses and, in some cases, lead to bankruptcy. Cyber insurance provides protection to businesses against these types of attacks, helping them to financially weather the storm should the worst happen.
Evolving threats
One of the most significant risks that small businesses face is data breaches, which can occur when a business's sensitive information is accessed by unauthorized individuals. With 4 in 5 data breaches occurring as a result of human error (Cyber Security Breaches Survey 2022 - GOV.UK (www.gov.uk)) and cyber criminals’ tactics becoming more and more advanced by the day, it may not be enough to just invest in comprehensive anti-viral software. Data breaches can lead to identity theft, financial loss and damage to the business's reputation and can be very costly to get back under control without the necessary cover.
Ransomware attacks are also becoming increasingly common among small businesses, which is a type of malware that encrypts your business's files and demands a large payment (hence the name ‘ransomware’) in exchange for the decryption key.
Additional layer of protection for businesses
It's important to note that cyber insurance is not a substitute for cybersecurity measures, small businesses should still take steps to protect themselves from cyber threats, such as implementing strong passwords, encrypting sensitive data and training employees on cybersecurity best practices. However, cyber insurance can provide an additional layer of protection for businesses that may not have the resources to implement robust cybersecurity measures.
NFP are a cyber insurance partner you can trust
In conclusion, cyber insurance is essential for small businesses to protect themselves from the financial losses associated with cyber-attacks. With the increasing frequency and severity of cyber threats, cyber insurance has become a necessary investment for small business owners. By investing in cyber insurance, small businesses can safeguard their finances and continue to operate even in the face of cyber-attacks.
Let us support you with the insights necessary to minimise and mitigate your risk from cyber exposure. Find out how we can support you with your cyber insurance or email us at insurance@nfp.co.uk