For many small and medium-sized enterprises (SMEs), technology is at the heart of daily operations — from managing payments and customer data to marketing and online sales. But as digital tools become essential to business, the risk of cybercrime grows just as fast.
The Growing Cyber Threat to SMEs
Cybercrime is no longer a problem only for big corporations. The Australian Cyber Security Centre (ACSC) reports that a cybercrime is reported every seven minutes in Australia, and around 62% of small businesses have experienced an incident. Common threats include phishing emails, ransomware, data breaches, and scams targeting online payment systems.
These attacks can lead to major disruption — from lost data and system downtime to financial losses and reputational harm. The ACSC estimates the average cost of a cyber incident for a small business is around $39,000, a figure that continues to rise each year.
Why Small Businesses Are at Greater Risk
Cybercriminals often see smaller businesses as easier targets because they tend to have limited cybersecurity budgets and less formal IT support. In fact, nearly half of Australian SMEs spend less than $500 per year on cyber protection. This makes them vulnerable to attacks that can quickly escalate, especially if data backups, password protections, or staff training are lacking.
How Cyber Insurance Can Help
Cyber insurance for small business is designed to help you recover quickly after an incident.
It can cover costs such as:
- Data recovery and system repair
- Business interruption and lost income
- Legal or regulatory expenses
- Crisis management and customer notification
Many policies also provide immediate access to cyber specialists — including IT forensics experts, legal advisors, and communications support — so you can respond effectively when time matters most.
Building Cyber Resilience
Cyber insurance works best when combined with strong cyber hygiene. Simple steps can make a big difference:
- Use multi-factor authentication for logins
- Keep software and security patches up to date
- Back up important data regularly
- Educate staff to spot suspicious emails and links
By strengthening your defences and having the right insurance in place, your business can bounce back faster — and with less disruption — if a cyber incident occurs.
The Bottom Line
Cyberattacks are now part of the reality of doing business in Australia. For SMEs, protecting against these risks isn’t just about technology — it’s about safeguarding your reputation, your customers, and your livelihood. Investing in cyber insurance and good cyber protection practices helps ensure your business stays secure, compliant, and resilient in an increasingly digital world.
Important notice
All information in this article is of a general nature only. This article does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete. Deductibles, exclusions and limits apply to insurance. Cover differs between insurers.
Sourced from Steadfast Group Ltd ACN 073 659 677
