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Cybersecurity in Small Businesses: Protecting Your Data

Cybersecurity

Cyberthreats don’t disappear; they simply evolve in today’s fast-paced, digital-first environment. For small businesses, remaining aware of these threats and taking proactive steps to mitigate them is essential to protecting your coveted client data.

According to Gallagher’s 2026 Cyber Insurance Market Outlook, as their attacks evolve, hackers have learned that stolen data is more valuable to the business it was stolen from rather than third parties on the black market. If your data is stolen, it’s likely they’ll extort you by threatening to publish sensitive data if payments aren’t made.

Additionally, the report points to the ongoing attractiveness of supply chain targets, such as technology vendors and service providers, which poses a danger to your providers if one is compromised, potentially exposing you and all other clients in a single attack. As most businesses think of cybersecurity events impacting them directly, it’s important to consider how your vendors can open you up to risk.

Here are some tips for small businesses to enhance your cybersecurity efforts, from internal security protocols and staff training to ensuring you carry the proper insurance to help mitigate your financial risks.

Improving Your Cybersecurity
If your client data is stolen, your business can face immediate financial losses, severe damage to your reputation and legal liability tied to clients’ increased risk of identity theft and fraud. If significant enough, a major hacking event can open you up to regulatory action and even threaten to shut down your business for good.

To better insulate your business against the negative impacts of cybercrime, try these tips:

• Secure your wireless network at all angles – In today’s hyperconnected world, we all have at least one device that connects to the internet. For your business, this can include the computers you use and your point-of-sale (POS) systems, as well as smart devices, such as Wi-Fi-enabled thermometers, conferencing tools, electronic door locks and others. Even the items that seem most inconspicuous can expose you to hackers if left unsecured on your network. Infamously, hackers attacked a casino via its internet-connected aquarium thermometer, gaining a valuable foothold in its network and pulling information from its high-roller database. Securing your wireless network can include:
  • Protecting your network with a strong password by changing all default usernames and passwords on your router.
  • Utilizing the encryption offered by your router so information can’t be read by outsiders.
  • Limiting all connected devices to the essentials required by your business; if your employees or guests need internet access, provide them with a separate public network.
  • Protecting your network with a strong password.
• Protect your data – As a small business, you regularly collect and retain data cybercriminals want to get their hands on, such as credit card numbers, addresses, phone numbers and even Social Security numbers. To help keep data out of the wrong hands, try:
  • Updating software regularly. Not running the newest version can leave you open to system vulnerabilities.
  • Maintaining strong physical security of data, such as storing devices containing sensitive information in a locked room. If any documents are not needed, shred them if they’re physical and use secure software to eliminate any digital traces.
  • Require strong passwords to access sensitive information; long passwords are the most secure, and every account should have its own unique password, according to the National Cybersecurity Alliance (NCA).
  • Utilize multifactor authentication (MFA) to protect sensitive information by requiring additional steps to log on. This can include a digital authenticator app that sends a secure code to your phone or email, or a physical hardware token that generates a code when plugged in. Some also utilize fingerprints and facial recognition technology.
• Train your staff – Unless you’re a small business of one, you need to take the time to train your staff to take their roles in your business’s cybersecurity seriously. According to Mimecast, a cloud-based cybersecurity platform, human risk is the primary challenge to businesses, with “insider threats, credential misuse and user-driven errors now accounting for most security incidents.” When training your staff, consider:
  • Developing cybersecurity policies and procedures. Establishing these guidelines can help reduce confusion and improve security around lost company cellphones, out-of-date laptops and other ways hackers can gain a foothold in your network.
• Closely assess your vendors – If you rely on third-party vendors to handle your payroll, marketing, IT services, cloud storage or any other important aspect of your business, you need to ensure they’re handling your data and network access responsibly. Make sure vendors use rigorous cybersecurity tools, have only the exact access required to complete their tasks and utilize a response plan in the event of a breach.

Safeguarding Your Investment
Businesses of all sizes, across all industries, are vulnerable to the damaging and disruptive effects of a cyberattack. Proactively following security best practices can help you avoid the common pitfalls and human errors that can lead to a hacking event, but it’s important to have protections in place should the worst come to pass.

Cyber Liability Insurance is an essential policy that can help insulate your business against the high cost of a breach or cyberattack by covering high-cost expenses that could further harm your bottom line, such as customer notification, credit monitoring, legal fees and fines.

When shopping for Cyber Liability Insurance, look for a policy that contains both first- and third-party coverage. First-party coverage is what gives you a financial safety net following an attack by covering the costs required to make your business whole again; this can include repairing affected computers, hiring data recovery experts and reimbursing lost income while your business is closed. Third-party coverage, meanwhile, helps safeguard your business if an outside party, such as an affected customer, tries to hold your company responsible for the impact the breach had on them.

The American Independent Business Coalition (AIBC) helps our members by enhancing three key areas of their lives — their careers, personal lives and general health — through unique member benefits. To explore the business benefits available through your AIBC membership, visit aibcoalition.com.

 

Articles in this newsletter are meant to be informative, enlightening and helpful to you. While all information contained herein is meant to be completely factual, it is always subject to change.

Benefits may not be available in all membership levels. For more information, or to upgrade your membership, please call 800.387.9027.

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