October is recognised worldwide as Cyber Security Awareness Month, a campaign designed to highlight the growing risks businesses face from cybercrime and to encourage organisations to strengthen their defences.

Recent high-profile events prove that no company is immune. Marks & Spencer was recently targeted by cybercriminals, while a 158-year-old engineering firm was forced offline after a major attack (BBC News). These aren’t isolated cases. They’re stark reminders that even the most established, resource-heavy businesses can be brought to their knees.

If organisations of this size and stature can be compromised, what does that mean for SMEs? The reality is that smaller businesses are often easier targets, with fewer resources to defend against sophisticated attacks. That’s why Cyber Liability Insurance is no longer optional, it’s an essential safety net that helps businesses recover when the worst happens.

Why cybercrime is everyone’s problem

There’s a dangerous myth that cybercriminals are only interested in big names. The truth is quite the opposite – SMEs are increasingly attractive targets because:

  • Their cyber security measures are often less advanced.
  • They may not have dedicated IT teams monitoring threats.
  • They handle sensitive customer and supplier data that can be exploited.

A single phishing email, a ransomware attack, or an employee clicking a malicious link can be all it takes to compromise an SME. And the fallout isn’t just about lost data, it’s about lost trust. Customers and suppliers want reassurance that their information is safe, and if a breach suggests otherwise, reputational damage can be as costly as the direct financial loss.

The cost of being unprepared

The M&S incident made headlines because of the disruption it caused to online shoppers. Meanwhile, the historic engineering firm attack showed how cybercrime can grind operations to a halt, damaging both finances and reputation.

For SMEs, the stakes are arguably even higher. A single cyber-attack can result in:

  • Financial losses — from stolen funds, ransom payments, or business downtime.
  • Regulatory fines — particularly if personal data is involved.
  • Legal costs — defending claims from affected customers or suppliers.
  • Reputational harm — which can linger long after systems are restored.

Research consistently shows that many SMEs that suffer a major cyber incident struggle to recover at all. Without insurance, the full cost falls squarely on the business. That’s a burden many simply cannot survive.

How cyber liability insurance protects SMEs

Preventative measures such as firewalls, antivirus software, and staff training are critical, but even the best systems cannot guarantee complete protection. Cyber Liability Insurance steps in when preventative measures fail, offering cover in key areas such as:

  • Costs accrued whilst repairing any damage that your website or systems may have incurred, as a result of any viruses, and rebuilding anything that has been destroyed by them
  • Costs incurred in the pursuit of the safe return of any lost or stolen data
  • Any cost incurred as a result of ID theft and the illegal use of your online identity
  • Any costs involved in restoration after hacking

For SMEs, this kind of support can be the difference between a temporary setback and permanent closure.

You can read more about what’s covered in a policy on our dedicated Cyber Liability Insurance page.

Practical steps for better cyber awareness

Cyber insurance is one part of a wider strategy. Every SME should also take proactive steps to strengthen its cyber resilience.

Some practical measures include:

  • Staff training — many attacks begin with human error, so training employees to spot phishing emails and suspicious links is vital.
  • Strong passwords and multi-factor authentication — simple measures that make it harder for criminals to gain access.
  • Regular software updates and patches — outdated systems are often an easy entry point.
  • Data backups — secure, off-site backups reduce the impact of ransomware.
  • Access controls — limiting who can access sensitive information.

We’ve previously shared 10 ways to protect your company against cybercrime, a useful checklist for SMEs wanting to tighten their defences.

Of course, prevention alone isn’t enough. By combining strong security practices with comprehensive insurance, SMEs can create a robust safety net against both the immediate and long-term consequences of a cyber-attack.

Cyber Security Awareness Month: Turning awareness into action

Awareness is important, but it’s only the first step. October’s Cyber Security Awareness Month is a timely reminder that businesses must translate awareness into action. Cybercriminals are becoming more sophisticated by the day, and the financial, operational, and reputational risks of an attack are too severe to ignore.

For SMEs, Cyber Liability Insurance offers vital protection against the fallout of an incident. It ensures that if the worst happens, your business has the financial support and expertise needed to recover quickly.

Conclusion

Cybercrime is not a distant threat; it’s a present and growing risk that can affect any business, regardless of size. For SMEs, the impact of an attack can be devastating without the right protections in place.

As Cyber Security Awareness Month reminds us, now is the time to act. Strengthen your security measures, train your staff, and most importantly, protect your business with the right insurance.

Speak to Rigby Financial today about Cyber Liability Insurance and give your business the protection it needs to face the digital age with confidence.

About the author

Andrew Rigby

Andrew Rigby

LinkedIn profile Managing Director – General Insurance Division

Andrew has been involved with the business for over 20 years and oversees the day to day running of the General Insurance section. He actively manages a portfolio of commercial and high net worth...

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