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What is Cyber Insurance for SMBs?

  • allanpage
  • Sep 26
  • 2 min read
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Cyber threats are no longer limited to large corporations – small and medium-sized businesses (SMBs) are also prime targets. Research shows that 61% of SMBs have experienced at least one cyber attack. With the average cost of a cyber incident reaching £15,300 in the UK many smaller firms find themselves facing significant financial and reputational damage. source CFC.com

This is where cyber insurance comes in.


What is Cyber Insurance?

Cyber insurance, also known as cyber liability insurance, helps businesses manage the financial impact of a cyber event. Policies typically cover incidents such as:


  • Data breaches (loss of sensitive customer or business data)

  • Ransomware attacks

  • Business interruption due to system outages

  • Fraud and social engineering scams

  • Regulatory fines and legal costs


Depending on the policy, cover usually falls into two categories:


  • First-party cover – protects your business directly, covering system damage, lost income, cyber crime losses, and recovery costs.

  • Third-party cover – protects against claims from clients, customers, or regulators if their data or systems are compromised due to your business.


Why Should SMBs Consider It?

Many SMBs mistakenly believe they’re “too small” to be targeted as only the big corporations like M&S, The Co-Op and Uber. However, in reality, attackers often see smaller firms as easier entry points because their cyber security measures may be less advanced.

The benefits of cyber insurance for SMBs include:


  • Financial protection – covering costs of recovery, legal defence, and compensation.

  • Access to expertise – many policies include 24/7 incident response and cyber specialists to help contain and recover quickly.

  • Business continuity – helping reduce downtime and reputational harm.


Things to Consider Before Buying

Cyber insurance is not a substitute for strong cyber security. Many insurers require businesses to meet minimum standards, such as multi-factor authentication or regular backups, before offering cover.

For SMBs across the East Midlands, combining robust cyber security measures with the right level of insurance protection can provide peace of mind and ensure resilience against growing threats.


Whether you’re looking for an end-to-end service provider or long term strategic IT planning and support get in touch. Our friendly team of experts will be more than happy to discuss your requirements. 

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