Small businesses across the U.S. face growing risks from cyberattacks, and experts say now is the time to take action. Cybercriminals are getting smarter and targeting smaller companies, which often lack the resources to protect themselves. The costs of these attacks add up fast, with the average breach costing close to $17,000—a number that has risen by nearly 30 percent recently.
About 99% of all U.S. businesses are small firms, and they have created 61% of new jobs since the mid-1990s. This means their security affects the wider economy, too. Cyber attackers look for easy targets, like outdated software, weak Wi-Fi, or employees who aren’t fully aware of cyber risks. Even a single click on a bad link can cause major damage.
Thomas McMillan, a commercial lines staff underwriter at Central Insurance, warns that many small businesses assume they aren’t targets. “Actually, they can be more vulnerable because they don’t have the same backup resources as bigger companies,” he says.
Fortunately, technology is catching up and becoming more affordable for small businesses. McMillan highlights several essential tools that small companies should consider in 2026. Password management tools like LastPass, 1Password, and Bitwarden help create and store strong, unique passwords. These tools often include alerts if your credentials are found in data breaches, plus an extra security step called multi-factor authentication.
Basic antivirus programs aren’t enough anymore. Today’s Endpoint Detection and Response (EDR) tools act like high-tech security guards, watching for odd behavior and stopping attacks before they spread. Options such as CrowdStrike, SentinelOne, and Microsoft Defender for Business offer real-time protection that fits small business budgets.
Network protection is also key. Cloud-based firewalls from providers like SonicWall and Cisco Umbrella shield company data and travel with employees working remotely. They are easier to manage and update than older hardware firewalls, helping businesses stay ahead of modern threats.
Technology alone won’t stop every attack because human mistakes are still the biggest risk. That’s why employee training matters. Close to half of small businesses don’t offer formal cybersecurity training, even though 41% faced threats in the past year. Tools like KnowBe4 and Huntress provide simple, effective lessons and simulated phishing tests to keep teams alert and informed.
Another layer of protection comes from insurance. Central Insurance and CyberScout offer Cyber Suite coverage, which can help with costs like legal fees and breach recovery. This coverage also connects companies to experts for support during a cyber crisis.
McMillan compares cybersecurity tools to home security cameras—once rare, now standard. He stresses that using these tools is not just smart but increasingly required by insurance companies. “Stopping a breach before it happens is always cheaper than dealing with one after the fact,” he says.
Small businesses ready to strengthen their defenses should reach out to a local independent insurance agent for tailored advice. With the right tools and support, they can stay safer in a world where digital threats keep evolving.