Cyberattacks are no longer rare occurrences—they’re a daily threat, and small businesses are increasingly becoming the prime targets. Why? Cybercriminals know that smaller companies often lack the advanced defenses of larger corporations. The financial and reputational impact of an attack can be devastating, but cyber insurance can help. It’s not just an extra layer of protection—it’s an essential tool for safeguarding your business.
At Monmouth Cyber, we’ve seen firsthand how businesses with cyber insurance are better equipped to recover quickly and minimize damage. Here’s everything you need to know about why cyber insurance matters and how to prepare for coverage.
What Is Cyber Insurance?
Cyber insurance provides financial protection for businesses in the event of a cyberattack, data breach, or other IT-related incident. Coverage typically includes:
- Notification Costs: For example, notifying clients and employees when personal data like Social Security numbers or credit card information is compromised.
- Data Recovery: Helping restore your systems after a ransomware attack or accidental deletion.
- Legal Fees and Regulatory Fines: Covering lawsuits or penalties resulting from a data breach.
- Business Interruption: Reimbursing lost income while your operations are down due to an attack.
- Reputation Management: Assisting with public relations to rebuild trust with your customers.
- Ransom Payments: Some policies cover ransom payments (although this is increasingly scrutinized).
Example: A healthcare provider faced a ransomware attack that encrypted patient records. Thanks to their cyber insurance policy, they recovered quickly, with costs for legal fees, public relations, and system restoration covered.
Why Small Businesses Need Cyber Insurance
You might think your business isn’t a target, but here’s the reality: 43% of cyberattacks target small businesses, and the average cost of a data breach for small companies exceeds $100,000.
Here are just a few of the risks you face:
- Phishing Scams
Hackers trick employees into revealing passwords or downloading malicious software.
Example: An employee at a construction company clicked on a fake invoice email, giving hackers access to sensitive client contracts. - Ransomware
Cybercriminals lock your files and demand payment for their release.
Example: A small accounting firm faced a $50,000 ransom to recover financial data they thought was securely backed up but wasn’t. - Regulatory Fines
Mishandling client or employee data can lead to penalties under laws like HIPAA, PCI-DSS, or New Jersey’s data protection regulations.
Cyber insurance not only covers the costs of these incidents but also provides peace of mind, knowing you’re financially protected against the unexpected.
What Do Insurers Expect?
Insurance companies want to see that you’re taking basic cybersecurity precautions. Without these measures, you may struggle to qualify for coverage—or face significantly higher premiums.
Here’s what most insurers require:
- Firewalls and Antivirus Software
Basic protections that block unauthorized access to your network. - Employee Training
Regularly teaching your team to recognize phishing attempts and practice good password hygiene.
Example: A business reduced phishing incidents by 80% after implementing quarterly cybersecurity training. - Incident Response Plan
A documented plan outlining how your business will respond to a breach. - Regular Security Audits
Vulnerability scans to identify and fix weak spots in your defenses.
Example: A retailer we worked with discovered outdated POS software that left customer payment data exposed. Updating the system prevented a potential breach. - Access Controls
Multifactor authentication (MFA) and role-based access to sensitive data, ensuring only authorized personnel can view or modify critical files. - Reliable Data Backups
Regular backups stored offsite or in the cloud to ensure data recovery in case of an attack.
By implementing these measures, you’re not only protecting your business but also demonstrating to insurers that you’re serious about cybersecurity.
How Monmouth Cyber Can Help
At Monmouth Cyber, we don’t just fix problems—we help you prevent them. If you’re considering cyber insurance, we’ll work with you to ensure your business meets all the requirements and is prepared to handle any potential threats.
Our services include:
- FREE Security Risk Assessments to identify vulnerabilities.
- Employee Training Programs to prevent phishing and insider threats.
- Backup and Disaster Recovery Planning to keep your data safe and accessible.
- 24/7 Monitoring and Support to catch and address threats before they escalate.
Protect Your Business in 2025
Cyber insurance is more than just a safety net—it’s a critical part of any modern business strategy. If you’re ready to take the next step, Monmouth Cyber can help you prepare your defenses, qualify for coverage, and build a resilient IT infrastructure.
Contact us today for a FREE Security Risk Assessment and ensure your business is ready for the challenges of 2025.
