Why Every Business Needs Cyber Liability Insurance

Updated December 1, 2025

As a small or medium-sized business owner, you might think cyberattacks only target large corporations with valuable data or sensitive information. The reality is that no business is too small to be at risk—and during the holidays, that risk can grow. With more people shopping online, employees distracted by seasonal tasks, and many offices operating with reduced staff, even a small slip-up can lead to a devastating cyberattack. That’s where cyber liability insurance becomes especially important this time of year.

What is Cyber Liability Insurance?

Cyber liability insurance covers the costs associated with a cyberattack — including legal fees, data recovery and business interruption. It also helps manage the fallout from a breach: damage to reputation, loss of customer trust, and other indirect costs. If your business relies on email, online transactions or storing customer data, you remain a potential target.

Why Small and Medium-Sized Businesses Need Cyber Liability Insurance

1. Cyberattacks Spike During Holidays
Cyber-crime tends to surge around the holiday season as phishing campaigns, holiday-themed scams, ransomware attempts and fake delivery, discount emails, and social media ads become more common as consumers and businesses enter the holiday frenzy. If an employee use their work computers to do holiday shopping and open themselves to these risks, your business’ data could also be at risk.

2. Lowered Vigilance + Higher Distraction
Between holiday parties and reduced staff for time off, many safety procedures may be overlooked or understaffed during the holiday season. Additionally, if your business sees an uptick in online traffic, increased safety measures should also be taken into account.

3. Customer Trust and Reputation Are Vulnerable at a Critical Time
If a breach happens during the holidays, it can have ripple effects beyond just financial loss. Stolen customer data or service interruptions may erode trust at a time when many customers are shopping or making year-end purchases. Recovering from reputational damage during a revenue-heavy season can be especially costly. Cyber liability insurance can help manage both the financial consequences and the reputational fallout — allowing a business to respond swiftly and restore customer confidence.

Tips to Protect Your Small Business This Holiday Season

• Avoid personal holiday shopping on work devices to reduce the chance of landing on unsafe websites or fake retail pages.

• Watch for holiday-themed phishing emails — fake shipping notices, gift card offers, or discount alerts are common traps. Never click on a link in a text or email, rather, visit the company’s website or app.

• Use strong, unique passwords and enable multi-factor authentication on all work accounts.

• Don’t connect to public or unsecured Wi-Fi when working remotely or traveling for the holidays.

• Report anything suspicious immediately, such as strange login prompts, unexpected attachments, or unfamiliar software updates.

Cyber liability insurance isn’t just for large enterprises — it remains a vital investment for any small or medium-sized business, perhaps even more so during the holiday season. With increased online activity, distracted employees and reduced staffing, the risk of a breach rises. By securing cyber liability coverage now, you’re protecting not only your business, but also your customers and reputation — even during the busiest time of the year. Don’t wait until it’s too late.