6 Cyber Myths for Small Businesses Debunked

1. Cybercrime Only Affects Large Organisations

One of the most persistent myths is that cyberattacks only target large corporations with vast resources. Many small business owners mistakenly believe they’re too small to attract the attention of cybercriminals. In reality, cyber criminals often see smaller businesses as “soft targets” due to simpler digital defenses and a lack of dedicated IT staff.

Malicious actors can easily launch attacks that impact multiple small businesses simultaneously, affecting operations and finances. Cybercrime isn’t limited to hacking—data loss can occur due to misplacing devices, accidental breaches, or identity theft. Investing in a proactive cyber insurance plan with Clear Business may help protect against these risks and support your recovery if the worst happens.

2. Cyber Insurance is Too Expensive

While cyber insurance is an investment, it’s important to consider the cost of not having it. Cyber incidents can lead to fines from the General Data Protection Regulation (GDPR), and perhaps even more damaging is the reputational impact of a data breach.

Consumers are increasingly cautious about sharing their data with companies that have experienced data breaches, which can directly affect your business’s revenue. Insurance provides essential support in the face of these risks, helping you to recover both financially and reputationally.

3. Cloud Backups Guarantee Data Security

Cloud storage is an excellent tool for managing data, but it’s not a guarantee of protection from cyber threats. A common myth is that backing up data to the Cloud ensures full safety. However, data remains vulnerable throughout its lifecycle, from collection to disposal.

If your small business uses a range of devices and software, data loss can still occur despite Cloud storage. Cyber criminals continuously adapt their methods, and small businesses need a “toolbox” approach, combining regular software updates, rigorous data audits, and comprehensive cyber insurance coverage.

4. We Don’t Handle Sensitive Information

Another misconception is that only businesses handling sensitive financial information are at risk. In fact, personal data includes much more than financial details. If your business collects email addresses, staff names, national insurance numbers, or other identifying information, you are handling sensitive data and are subject to data protection laws. Card payment terminals often store personal details temporarily, which may include encrypted customer data. This makes them a potential target for cyber threats too.

Cyber criminals exploit all kinds of personal data, even basic contact details, to launch phishing attacks or other scams. For instance, many of us receive spam emails regularly, a minor example of how data can be misused. A solid cyber insurance policy ensures you're prepared to handle these risks and maintain customer trust.

5. Existing Insurance Covers Cyber Risks

It’s easy to assume that general business insurance includes coverage for cyber incidents, but this assumption can leave you vulnerable. Many small business owners overlook specific terms in their insurance policies, which can lead to gaps in cover. Traditional business insurance often does not extend to data loss or cyber-related interruptions.

To ensure full protection, you need a cyber insurance policy tailored to cover business interruption, legal support, and other unique aspects of cyber risk.

6. Outsourcing IT Means We’re Safe

Outsourcing IT can give businesses access to specialist knowledge and support, but it doesn’t eliminate cyber risk. Your business remains responsible for the safety of customer and supplier data, even if a third-party provider manages it. Any data breach, whether internal or at a vendor, can impact your business’s reputation and finances.

Cyber insurance provides peace of mind, ensuring you’re covered even if data breaches occur with external partners.

Protect your business from cyber risks

Cybercrime is an ever-present risk for businesses of all sizes, and no foolproof solution exists to guarantee data security. However, a comprehensive cyber insurance policy helps protect your business’s financial and reputational health in the event of a cyber incident.