Cyberattacks pose a growing threat to small businesses, with impacts that can be financially and operationally devastating. Limited resources often make small businesses easier targets for cybercriminals. Implementing a strong cybersecurity strategy is essential to protect sensitive data, maintain customer trust, and secure long-term business stability in a digital world.
Cyberattacks are an increasing threat to small businesses, with potential consequences that can devastate a company. In 2022 alone, the average cost of a cyber breach in the UK was approximately £1,200 across businesses of all sizes. Research from 2021 revealed that 41% of UK SMEs experienced cyber incidents within a single year, with 20% encountering multiple attacks. Worryingly, as many as 1.3 million UK small businesses could face closure if targeted by a significant cyberattack.
A common misconception among small business owners is that cyber threats are only a risk for larger corporations. Yet, data shows that cybercriminals increasingly target SMEs precisely because they may have fewer resources dedicated to online security. In today’s digital landscape, having a proactive cyber security strategy is as essential as a marketing plan or operational budget. Protecting sensitive customer data is not only a best practice but is also crucial to maintaining trust.
Taking preventative action, like implementing a cyber security strategy, helps reduce risks and protect your business assets. Even if a small business doesn’t perceive itself as a target, being part of a supply chain could make it a vulnerability point for larger networks, including suppliers and customers.
Many small business owners hesitate to implement cyber security measures due to common myths:
- Belief that cyber security requires complex strategies
- High costs associated with technology
- Lack of available time
In reality, even simple steps can significantly improve a company’s resilience against cyber threats. Some basic measures to establish sound cyber hygiene include:
- Regularly updating all software and operating systems
- Using strong, unique passwords along with multi-factor authentication
- Developing clear, straightforward policies for employees
- Ensuring that all security tools and software are configured effectively
Beyond technology, awareness and education remain some of the best defences against cyber threats. Understanding what phishing emails look like and recognising malicious links can prevent breaches before they start. Small business owners can make a big impact by providing training to help employees understand potential cyber risks and why company policies are in place. Read more about common cyber attacks here.
For businesses that wish to showcase their commitment to cyber security, the UK government’s Cyber Essentials scheme can be a valuable investment. This programme guides organisations in implementing basic security controls to protect themselves and their customers. Attaining Cyber Essentials certification demonstrates your commitment to safeguarding sensitive information, which can be a trust signal for current and prospective clients alike.
While no company can completely eliminate the risk of a cyberattack, there are ways to mitigate the financial and legal repercussions. Cyber insurance can play an essential role in managing these risks, covering potential costs associated with a breach, including legal fees and recovery expenses.
At Clear Business, we understand that every SME has unique needs. With a tailored cyber insurance policy, you can ensure you have the specific coverage required without paying more than necessary.
If you're interested in finding out more about how cyber insurance can safeguard your business against online threats, read our guide for small businesses.
In an era where cyber threats continue to evolve, small businesses must stay vigilant. While perfect security may be unattainable, taking proactive steps, from internal training to investing in cyber insurance, can significantly reduce your exposure to cyber risks. Safeguard your business, your data, and your clients by staying informed and prepared.
Small businesses can often be seen as easy targets for cyber criminals due to limited cyber security resources. Cyber insurance from Clear Business could help cover the costs and provide guidance during a cyber security breach.
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*The price is for up to £2 million of public liability insurance – 10% of customers paid £4.74 or less annually between 1st Jan - 31st May 2024. Equivalent to £56.82 a year (and excludes the extra costs for paying monthly). If you complete a quote, more types of cover will be available and these all have additional costs.
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