Cyberattacks don't just target large corporations. 43% of cyberattacks target small businesses, and the average cost of a data breach for a small business is $120,000 — enough to bankrupt many.
What Cyber Insurance Covers
- Data breach notification costs (legally required in all 50 states)
- Ransomware payments and recovery costs
- Business interruption from cyber incidents
- Legal defense and liability from customer data exposure
- Forensic investigation to determine attack scope
- Credit monitoring for affected customers
Cost
Small business cyber insurance runs $500-$3,000/year depending on industry, size, and security posture. Companies with MFA, encrypted data, and employee training get the best rates.
Why It's Urgent
Ransomware attacks on small businesses increased 150% in 2025. The average downtime from a cyber incident is 21 days. 60% of small businesses that suffer a cyberattack close within 6 months.
General liability insurance does NOT cover cyber incidents. You need a separate cyber policy.
