Think your business is too small to be a target? Think again.

According to the UK Government’s Cyber Security Breaches Survey 2023, nearly 32% of UK businesses identified cyber attacks in the past 12 months. While large companies are often more prepared, it’s the small and medium-sized enterprises that suffer disproportionately from these attacks. A shocking 51% of UK SMEs that experienced a cyber attack reported it negatively impacted their business, leading to disrupted operations, lost revenue, and long-term reputational damage.

Why are SMEs being targeted? Simply put, many of them are seen as the “low-hanging fruit” of the cyber world—easier to exploit, less likely to have robust defences, and often unaware of the full extent of the threat landscape. With fewer resources to dedicate to IT security, these businesses are more likely to fall victim to ransomware, phishing schemes, data breaches, and more.

The True Cost of a Cyber Attack

The financial impact of a cyber attack can be crippling. The average cost of a cyber breach for SMEs in the UK is estimated at £8,460 — and that’s before factoring in the potential loss of business, reputational harm, and the time it takes to recover.

But it’s not just about the immediate financial cost! When customer data is compromised trust is shattered. It can take years for a small business to rebuild its reputation, if it manages to survive at all. According to research by insurer Hiscox, one in six SMEs attacked by cybercriminals in the UK were so severely affected they were forced to cease operations entirely.

Now, think about that. A cyber attack not only threatens your profits, but your very ability to continue trading.

Ignorance is No Longer Bliss: Why Cyber Awareness is Crucial

One of the most significant challenges facing SMEs is a lack of awareness about the risks they face. Many business owners mistakenly believe that they’re too small to attract the attention of cybercriminals, or that basic antivirus software will protect them.

Unfortunately, these misconceptions can have devastating consequences. The same UK Government Cyber Security Breaches Survey revealed that only 36% of small businesses have a cyber incident response plan in place. Worse yet, many SME owners aren’t even sure how they would respond if they were attacked.

Cyber awareness training for employees, ensuring robust password practices, encrypting sensitive data, and maintaining updated software—these are all critical first steps in safeguarding your business. Cyber awareness isn’t just a one-time activity either; it’s an ongoing commitment to staying informed, vigilant, and prepared for the evolving threat landscape.

To assist our clients we have collated Essential and Free Resources to help you stay protected.

Why You Need Cyber Insurance

Even with the best prevention measures in place, no business is immune to cyber threats. This is where cyber insurance comes in.

Cyber insurance offers protection from the financial fallout of cyber attacks. It can cover everything from legal fees and customer notification costs to the price of recovering lost data and the business interruption caused by a breach. Some policies even provide cover for ransomware payments, although the wisdom of paying attackers is always up for debate.

For SMEs, which often lack the financial cushion that larger businesses might have, cyber insurance can mean the difference between weathering a storm and going under. As of 2022, however, only 11% of UK SMEs had invested in cyber insurance—a figure that underscores how many are still leaving themselves dangerously exposed.

What’s at Stake for Your Business?

In a world where data is the new currency, your business’s digital assets are every bit as valuable as its physical assets—if not more so. Customer data, intellectual property, financial information—all of these are attractive targets for cybercriminals. Failing to protect them can have disastrous consequences.

If you’re still on the fence about the importance of cyber awareness and insurance, ask yourself this: can you afford to lose thousands, or even tens of thousands of pounds, to a cyber attack? Can your business survive a long-term loss of customer trust? How would you recover from a data breach if your critical systems were shut down for days or even weeks?

The unfortunate reality is that many SMEs are finding out the answers to these questions the hard way. But it doesn’t have to be that way for you.

Taking Action: The Way Forward

Cyber awareness and insurance should no longer be seen as optional for UK SMEs. Taking proactive steps to protect your business—whether it’s through implementing security protocols, training your staff, or purchasing a comprehensive cyber insurance policy—is an investment in your future.

The digital world is rife with opportunity, but it’s also full of risk. Protecting your business from cyber threats isn’t just about keeping the bad guys out; it’s about ensuring you have the resilience to thrive, no matter what challenges come your way. In a time when the average SME is more vulnerable to cyber attacks than ever, the question isn’t whether you can afford to invest in cybersecurity—it’s whether you can afford not to.

As part of the July 2024 Kings Speech the government announced it would introduce a Cyber Security and Resilience Bill. The aim is to improve UK cyber defences and protect our essential public services. It is anticipated that all businesses in supply chain to these sectors will be required to adopt minimum levels of cyber security such as achieving Cyber Essentials certification.

Is your business ready to face the cyber threats of tomorrow?

To assist our clients we have collated Essential and Free Resources to help you stay protected. By taking adopting some of these measures, UK SMEs can not only protect themselves from devastating cyber attacks but also ensure they’re not among the growing number of businesses forced to close their doors due to a lack of preparation. Stay informed, stay vigilant, and most importantly AND preferably stay insured.

Munro Greenhalgh offer advice on Cyber Risk Insurance – to give you peace of mind – and offer cyber insurance that covers loss of funds, loss of data and technical failure (either accidental or malicious).

Why not book an appointment with us to discuss how we can help stop your business from being one of the 6 million reported phishing scams this year.

Contact Stephen, David or Richard on 01706 824023

“We make it our business to understand your business”

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