What Is Cyber Insurance – And As a Small Business Owner, Why Should You Care?

John W. Harmon, PhD
Jul 20
2 min read

In today’s digital world, cyber threats aren’t just a risk for large corporations—they’re a growing danger for small businesses, too. If your business uses email, stores customer information, processes payments, or connects to the internet (spoiler: it does), you're a target. Yet many small business owners don’t realize how vulnerable they are—until it’s too late.

That’s where cyber insurance comes in.

What Is Cyber Insurance?

Cyber insurance (also called cyber liability insurance) is designed to help businesses recover after a cyberattack, data breach, or other digital incident. Think of it like business insurance for your technology and data. It can cover financial losses, recovery costs, legal fees, and even reputational damage caused by cybercrime.

Depending on the policy, cyber insurance may help cover:

Data breach response: Notifying affected customers, offering credit monitoring, and conducting forensic investigations.
Business interruption: Lost income from downtime due to a ransomware attack or system failure.
Cyber extortion: Payments and negotiation help if you’re hit with ransomware.
Legal defense: Costs related to lawsuits or regulatory penalties.
Third-party damages: If your breach impacts your clients or partners.

Why Should a Small Business Owner Care?

You might be thinking, “We’re just a small shop—no one’s coming after us.” Unfortunately, that’s exactly what makes small businesses attractive targets. Most lack the cybersecurity resources and expertise that larger companies have, making them low-hanging fruit for attackers.

Here’s why cyber insurance should be on your radar:

1. Cyberattacks Are Expensive

The average cost of a data breach for a small business is over $200,000. Many companies never recover. Cyber insurance can mean the difference between bouncing back—or shutting your doors for good.

2. You’re Probably Already at Risk

Do you accept online payments? Store customer records? Use cloud apps or remote work tools? That’s all digital exposure. Even a phishing email can bring down your systems.

3. Compliance May Require It

If you work with government, healthcare, or financial data—or if you're aiming for NIST/CMMC compliance—cyber insurance may be required by contract or regulation.

4. It Shows You’re Taking Security Seriously

Having a cyber insurance policy demonstrates to clients, partners, and stakeholders that you take data protection seriously. It’s an added layer of professionalism and trust.

5. It Doesn’t Replace Cybersecurity—but It Complements It

Think of cyber insurance like the seatbelt in your car. It doesn’t stop the crash—but it can reduce the damage. A solid security plan paired with cyber insurance gives you a well-rounded defense.

Final Thought: Hope for the Best, Plan for the Worst

Cyber threats are part of doing business today, whether you’re a local shop, a manufacturer, a healthcare office, or a tech startup. As your trusted IT partner, Computer Solutions can help you assess your risk, improve your security posture, and connect you with the right cyber insurance provider to protect your business.

📞 Call us today at (276) 783‑5500 or (866) 566‑6724

📧 Or email: sales @marioncs.com

🔐 Not sure where you stand? Get your free CyberScore report:👉 https://app.thecyberscore.com/?id=marioncs

📅 Want to talk about your cybersecurity options?

Book a time with Dr. John:👉 https://calendly.com/dr_john/15min