When you think about cyber threats, you might picture a large corporation battling a data breach, not a small construction firm, local brewery or veterinary clinic. But here’s the reality—cybercriminals don’t just go after the big guys. In fact, small businesses are often prime targets because they typically have fewer security resources.
If your business handles sensitive customer information, processes electronic payments or even just operates with email and a website, you’re at risk. That’s why cyber insurance is becoming a must-have for small businesses across all industries.
Why Cyber Threats Are a Bigger Problem Than You Think
A cyberattack isn’t just an IT issue—it’s a business issue.
With small businesses often seen as an easy target for cyberattacks, it’s no wonder business owners have a touch of anxiety when it comes to understanding how to protect data—from banking and payment processing to email and customer databases. In fact, 44 percent of small businesses have experienced a cyberattack, according to computer security software company McAfee.
The average paid claim for a small business cyberattack is $45,000.1
Here are some examples of how the consequences can be costly and disruptive:
Financial loss – A cyber incident can lead to direct financial losses, from fraudulent wire transfers to ransom payments.
Business interruption – If a hack shuts down your website or software, you could lose days (or weeks) of income.
Legal and compliance issues – A data breach could mean fines or legal trouble if you’re handling customer data.
Reputation damage – Trust is everything. A breach could cause customers to take their business elsewhere.
Who Needs Cyber Insurance? (Hint: Probably Your Business!)
You don’t have to be an online retailer or tech company to need cyber protection. Here’s how cyber risks could impact different types of small businesses:
Construction contractors: You store customer payment details, project contracts and employee records digitally. A hacker could steal sensitive data or lock you out of your systems.
Breweries and restaurants: If you take online orders or run a customer loyalty program, a data breach could expose customers’ personal and financial information.
Veterinarian offices: Your clinic stores pet medical records, owner payment details and appointment schedules—making you a target for ransomware attacks.
Religious organizations and nonprofit groups: Many religious organizations and nonprofit groups collect donations online or store member records. A breach could compromise financial data and personal information.
Small retail shops and service businesses: If you accept credit card payments, have an online booking system or store customer data, you’re at risk.
What Cyber Insurance Covers
Cyber insurance is designed to help businesses recover quickly from an attack or data breach. Cyber insurance can cover:
✅ Legal and notification costs if customer or employee data is compromised
✅ Financial loss due to fraud or cyber extortion (ransomware attacks)
✅ Data recovery and IT forensics to identify and fix the issue
Protect Your Business Before It’s Too Late
Cyber threats aren’t going away. In fact, they’re increasing, and small businesses are becoming a top target. No matter your industry, if you rely on technology—even just email and a website—cyber insurance can help safeguard your business.
Don’t wait until a cyberattack disrupts your operations. Learn more and get started today to protect your business.
ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York). The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.
The insurance products and rates, if applicable, described in this blog are in effect as of October 2024 and may be changed at any time.
Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.
