Cyberattacks are no longer exclusively a concern for large corporations. Hackers often focus on small and medium-sized businesses, correctly assuming their victims have fewer security controls in place. Unfortunately, the financial hit of a serious data breach proves to be too high for most smaller companies.
At The Ingram Agency, we see it every day – businesses built on solid foundations that haven’t accounted for digital risk. Cyber liability insurance closes that gap.
Why Small Businesses Are Prime Targets
Many owners believe they’re “too small” to attract cybercriminals, which paradoxically makes them look like easier prey. That’s why 61% of SMBs have been the target of a cyberattack.
Step back and evaluate how often you:
- Store customer payment information
- Maintain employee records with Social Security numbers or other sensitive data
- Use cloud-based platforms
- Rely on freelancers, part-timers, or remote workers
- Operate online booking, portals, or e-commerce systems
A single phishing email or ransomware attack can expose sensitive data and shut down your operations overnight. When that happens, it can cause a significant financial, legal, and reputational crisis.
What Cyber Liability Insurance Covers
Cyber liability insurance policies address digital threats – the kind that live in your inbox, servers, software platforms, and cloud accounts.
- Forensic investigation and data recovery to determine what happened and restore systems
- Breach response and client notification costs
- Legal defense and regulatory fines
- Ransomware payments
- Business interruption losses caused by system downtime
- Public relations and reputation management
- Fraud monitoring services for affected clients
Who Needs Cyber Liability Insurance?
Any business can be vulnerable to cyber liability. Consider how quickly a hacker might access valuable information through a gateway as simple as your email inbox. You should consider securing coverage if your business handles any of the following:
- Client or employee personal data
- Credit card or banking information
- Proprietary customer data or intellectual property
- Cloud-based storage systems
- Remote employee networks
- Online portals or digital service platforms
Real-World Applications of a Cyber Policy
Imagine a small, boutique marketing agency falling victim to ransomware. Their files immediately become unavailable, and their clients can’t access shared assets. In this scenario, cyber liability insurance can:
- Pay for experts to eliminate the ransomware
- Cover the ransom payment if necessary
- Reimburse lost income during downtime
- Fund legal counsel if clients sue
- Provide notification services and credit monitoring
How to Assess Your Cyber Risk
Ask yourself:
- If our systems went down for more than a few business days, what would that cost us?
- How much sensitive client data do we store?
- Do we depend on cloud-based platforms?
- Could we afford potential legal fees if clients sued over a breach?
- Does our current general liability policy specifically cover cyber incidents? (Most do not.)
If you don’t know the answers, that’s the first place to start.
More Affordable Than You Think
Without cyber insurance, a breach could force you to pay regulatory fines, legal fees, and massive notification costs – all out of pocket. Can you afford to absorb a financial blow of that magnitude?
For most small business owners, the annual premium of a cyber liability policy is modest compared to the six- or seven-figure exposure of a breach. Beyond paying claims, this coverage also gives you access to knowledgeable help and guidance the moment something goes wrong.
Protecting What You’ve Built
At The Ingram Agency, we believe insurance should evolve with the active, growing risks your business might encounter daily.
Our team works directly with clients to evaluate real-world exposure and connect them with top-tier carriers that specialize in digital risk protection. If your business uses email, stores client data, processes online payments, or relies on cloud storage, it’s time to talk about cyber liability insurance. Contact us to review your risk before a criminal finds it first.