Cybercrime is no longer a distant threat reserved for large corporations with massive databases and global reach. In 2025, small businesses are increasingly finding themselves in the crosshairs of hackers, phishing scams, and ransomware attacks. For business owners in Ottawa and across Canada, the stakes are high—and often misunderstood.
“Small businesses tend to think they’re not targets, but that’s no longer the case,” says Andrew Smith, Financial Advisor and head of Andrew Smith Insurance Inc., a branch of The Co-operators. “Hackers know that smaller operations may not have the same level of cybersecurity infrastructure as larger firms. That vulnerability makes them appealing.”
In today’s digital economy, a single breach can shut down a company for days, compromise sensitive customer data, and rack up tens of thousands of dollars in recovery costs and legal fees. That’s where cyber liability insurance comes in—but not all policies are created equal.
“There’s a growing awareness about cyber threats, but most small business owners still don’t know what they’re actually covered for,” Smith explains. “Some assume their general business policy includes cyber protection, but in many cases, it doesn’t. Or if it does, it may be limited in scope.”
So, what kind of cybersecurity insurance does a small business actually need?
According to Smith, the most critical component is data breach coverage. “This helps with the immediate response—things like notifying customers, restoring data, and even covering credit monitoring services if personal data has been compromised,” he says. For any business that collects customer names, emails, payment information, or medical records, this is essential.
Another important feature is business interruption coverage—something Smith says is often overlooked. “If your systems are locked due to a ransomware attack, you may not be able to operate for days. Business interruption coverage can help recover lost income and cover operational expenses during downtime.”
Then there’s cyber extortion protection, which helps with the cost of responding to ransom demands or negotiating with attackers. “Ransomware is on the rise,” Smith adds. “We’ve seen cases where small businesses are forced to pay just to regain access to their own systems or data. Having a policy that offers support and guidance during that kind of crisis is invaluable.”
Legal liability and regulatory support are also worth considering. “If customer data is exposed and you’re found to have not taken reasonable precautions, you could be liable,” Smith explains. “Cyber insurance can help with legal fees, fines, and compliance requirements, especially as privacy laws become stricter.”
But cyber insurance is just one piece of the puzzle. Smith emphasizes that coverage should go hand-in-hand with risk mitigation strategies. “We advise our clients on both coverage and prevention. Training staff, using secure networks, keeping software up to date—those steps are just as important. Cyber insurance is there for when things go wrong, but good practices reduce the likelihood of needing to use it.”
For small business owners unsure of where to start, Smith suggests having a conversation with an advisor who understands both the technical and human sides of running a business. “Cyber risk isn’t just an IT issue—it’s a business continuity issue. It affects your reputation, your finances, your operations. We take the time to assess each client’s specific exposure and walk them through coverage options that actually fit their needs.”
In a world where digital threats are becoming part of everyday business, Smith’s approach remains grounded in clarity, practicality, and personal support. “The technology may change, but the goal is the same: protect your people, your assets, and your peace of mind.”
