Businesses across industry lines have become more reliant on technology to conduct their operations. However, any digital presence—no matter how small—presents a cybersecurity risk. Whether a business utilizes e-commerce, stores sensitive data, or sends emails, it could be vulnerable to cyberattacks.

These incidents can result in large-scale financial losses, regulatory fines, and reputational damage. While such consequences can impact organizations of any size, small businesses may find them particularly devastating due to their limited funds and response resources. That’s why it’s imperative for these businesses to secure cyber insurance.

This coverage can serve as a critical lifeline to small businesses during a cyberattack by helping pay for costs related to data recovery, legal defense, breach notification requirements, and public relations efforts. This article provides more information on the value of cyber insurance for small businesses.

Why Small Businesses Should Consider Cyber Insurance

Although every company can benefit from cyber insurance, there are several reasons why this coverage is particularly important for small businesses.

Cyber Economy

Ventures reported that 60% of small businesses close their doors for good within six months of experiencing a cyberattack. Fortunately, cyber insurance can make all the difference in keeping small businesses afloat following an incident.

Provided by: Marshfield Insurance

This document is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2025 Zywave, Inc. All rights reserved.