With constant headlines swirling about AI, automation, and cybercrime, here’s what we know for certain: there’s a lot we don’t know. The digital world is advancing faster than most organizations can keep up with, and every new innovation brings new risks and the need for increased risk management. While we can’t predict the future, our team at Henry Insurance in Baton Rouge can help you prepare for it. Let’s build an insurance plan that helps you protect what matters most: your people and their data.
Why Cybersecurity Matters for Every Business
About 66% of organizations say AI will make the biggest impact on cybersecurity in the next year, yet only 37% have a plan to review the safety of their AI tools before rolling them out (World Economic Forum).
Cybersecurity may sound like something for major corporations or world militaries to contend with or maybe it’s something you keep pushing to the backburner, but the reality is that cyber criminals look for weak points. And, they’re finding them, oftentimes in smaller operations like local businesses, schools, and even restaurants. We’re in a new era of risk. It’s time to start thinking seriously about what it looks like to protect your business in 2026 and beyond.
What are Cyber Threats?
A cyber incident is any event that threatens the safety, privacy, or availability of your data or systems, whether it’s a hacker, a system glitch, or someone (often unknowingly) breaking security rules or policies. Just one cyber event can severely damage an organization’s overall financial health or even force an operation to close. It doesn’t matter if you’re in banking or construction or healthcare, everyone will increasingly face cybersecurity threats that could disrupt operations, compromise data, and cost thousands or even millions in recovery and legal fees.
Cyber Threats Are the #1 Concern for U.S. Businesses
According to the latest risk surveys, cyber threats now top the list of business concerns across the U.S. For the ninth time in ten years, cyber victimization has increased. And, small businesses are no exception. In fact, over half of all cyberattacks target small to midsized companies. If your business accepts credit cards, stores customer information, or operates online, you are a prime target. According to the National Cybersecurity Institute, 50 percent of small to medium-sized businesses experience a cyber attack and more than 60 percent of those attacked go out of business.
What’s the Impact of Cybercrime? A Snapshot by the Numbers
$10.5 Trillion: Cybercrime is set to cost businesses up to $10.5 trillion by 2025 and could reach as high as $15.63 trillion by 2029 (Statista).
97% of companies have reported GenAI security issues and breaches (CapgeminiSE).
More than 60% of companies prioritize the risk of cybersecurity as a buying consideration when selecting supply chain partners (Gartner).
20% of businesses still fail to implement basic protections, like changing passwords, patching vulnerabilities, or using firewalls (CISCO).
What’s the average cost of a small business data breach?
The average cost of a breach for a small business ranges from $120,000 to $1.24 million, depending on its severity. For many small businesses, this is a financial burden they simply cannot recover from. These devastating figures highlight why every small business should consider adding Cyber Liability Insurance to their protection plan.
What Is Cyber Liability Insurance?
Cyber Liability Insurance helps protect your business from the financial and reputational fallout of a cyberattack or data breach. When cybercriminals steal, encrypt, or expose sensitive data, your business can be held liable. Cyber insurance can help cover costs such as:
- Legal fees and regulatory fines
- Forensic investigations and data recovery
- Business interruption expenses and more
There are two main types of cyber liability coverage to understand:
First-Party Cyber Coverage
Covers direct losses your business suffers from a breach, like data recovery, customer notifications, legal consultation, and crisis management.
Third-Party Cyber Coverage
Protects your business if a customer, partner, or vendor sues due to a breach that impacted their data. It can help pay for legal defense, judgments, or settlements.
Does General Liability Cover Cyber Events?
In most cases, no. A general liability policy covers bodily injury and property damage resulting from your products, services, or operations. Typically, it excludes cyber-related losses.
Cyber Liability Insurance can often be added to an existing general liability policy or purchased as a standalone policy. Cyber liability is also distinct from Errors & Omissions (E&O) coverage, which protects businesses providing technology products or services. While there may be overlap, E&O is designed for tech providers, not general business owners.
The Bottom Line: Prepare, Don’t React
Cyber threats aren’t slowing down, and neither should your protection. As we head into the end of 2025, it’s time to evaluate your exposure, strengthen your digital defenses, and review insurance coverage options. Cyber liability insurance offers the financial and operational protection needed against today’s most unpredictable risks.
Schedule a Consultation with Henry Insurance
Understanding the best path forward for digital protection can be overwhelming and confusing. Henry Insurance in Baton Rouge is here to help your business navigate this evolving landscape. Our team can help you assess your risks, determine the right coverage, and prepare for the future with confidence, so you can focus on what matters most: running your business securely.
