The Role of Cyber Insurance in 2025: How biBerk Protects Small Businesses in a Digital Age

While security breaches that affect large enterprise businesses tend to make the biggest headlines, small businesses are just as vulnerable, if not more so. In fact, a recent survey by Mastercard found that 46% of global small to medium-sized business owners had experienced a cyber attack. Even more alarming, nearly one in five of those who experienced an attack ultimately closed their business or filed for bankruptcy as a result.

Even when the financial consequences aren't so severe, the vast majority of small businesses still struggle in the aftermath of a successful cyber attack. Trying to restore productivity and rebuild trust with clients can take a significant amount of time, hurting a business's progress and profitability.

That's why providers like biBerk, a Berkshire Hathaway company offering simplified, affordable insurance for small businesses, are playing a crucial role in helping entrepreneurs stay protected in today's increasingly digital world. Specializing in direct-to-business insurance, biBerk offers cyber insurance policies designed to meet the specific risks that small business owners face, with transparent pricing and fast, online access to coverage.

Why Cyber Insurance from biBerk Is Essential for Today's Businesses

According to Verizon's 2025 Data Breach Investigations Report, small businesses are being targeted four times more often than larger businesses, with a median ransomware payment of $115,000.

However, total costs stemming from lost productivity, responding to the data breach, and potentially losing customers (or even facing a lawsuit) can be much higher. Because small businesses tend to operate on smaller margins than larger enterprises, the financial fallout from a single successful attack can be enough to put the company out of business or significantly curtail its operations.

"Small businesses have become a more attractive target because they are less likely to have the robust security infrastructure needed to prevent these breaches in the first place," Blake Fuchtman, Chief Actuary, says. "Outdated networks and software, not having data backups, and failing to train employees on essential cybersecurity practices make many small businesses an attractive target. Without cyber insurance, small businesses don't have any financial support as they try to pick up the pieces after an attack."

What Does Cyber Insurance from biBerk Cover?

Cyber insurance from biBerk is designed to provide comprehensive support for the costs a small business incurs as it addresses a successful cyber attack. This starts with the business expenses that come from trying to directly respond to the attack, such as notifying affected customers, employees, or other stakeholders. biBerk's cyber insurance also covers the cost of providing service (such as identity fraud or credit report monitoring) for those who have been affected by your security breach.

"Many businesses also find themselves needing to get public relations support, as well as conduct legal and IT reviews of the incident. This is also covered in our policies. These professional services are meant to help the business determine what went wrong and how to fix it, and to communicate that information in a way that will help them rebuild trust with the public," notes Rakesh Gupta, President. "Our cyber insurance can also provide coverage for a small business's legal defense and liability costs if they are sued by their customers because of the cyber attack."

While these forms of coverage can make a world of difference for a small business after a successful cyber attack, it's important to remember that cyber insurance doesn't cover everything. For example, biBerk's policies generally exclude business interruption losses, cyber extortion losses, and stolen funds (such as ransom payments), data recovery costs, or cybersecurity enhancements, among others.

By offering coverage for the most common data breach expenses, however, cyber insurance will provide much-needed support to streamline the recovery process so businesses can return to full productivity and regain the trust of their customers.

Affordable, Essential Coverage

One of the most common misconceptions regarding cyber insurance is that it is simply too expensive for small businesses to add on to the business's other costs. In reality, the perceived costs of cyber insurance are often blown out of proportion—and the actual expenses pale in comparison to the financial fallout of a successful data breach.

"biBerk has several key attributes that set it apart from other cyber insurance options," explains Blake Fuchtman, Chief Actuary. "We are committed to offering transparent, affordable pricing that fits the needs of small businesses. And by offering a digital-first experience with online quotes and policy management, we make it as easy as possible to stay on top of your security needs. Finally, backing by Berkshire Hathaway means you can have confidence that you'll get the comprehensive support you'll need."

For example, biBerk's base coverage of $50,000 for response expenses and $50,000 for defense liability has an average rate of $85 to $200 per year. As with any other type of business insurance, actual premium costs (including when a business purchases add-on coverage in higher amounts) largely depend on the business's activities and industry, as well as desired coverage limit and deductible. As an add-on to a business owner's policy or general liability insurance, cyber insurance is actually quite affordable, particularly with biBerk's transparent quoting options, which let you adjust coverage as desired.

Of course, insurance is only part of the cybersecurity picture. Small businesses should prioritize data protection with tactics such as internet firewalls, up-to-date antivirus software, multi-factor authentication, data backups, and employee education. With a targeted plan for preventing and responding to cyber attacks, small businesses can mitigate risk and thrive online.

Make Cyber Insurance from biBerk Part of Your Insurance Portfolio

While other liability insurance products have gained widespread adoption among small businesses, surveys indicate that as few as 17% of small businesses carry cyber insurance. When combined with less robust cybersecurity practices in general, this makes small business owners uniquely vulnerable to ransomware, phishing, and other cyber attacks.

Adding cyber insurance coverage may not always seem like a top priority among the many other responsibilities small business owners need to juggle. But it could ultimately be one of the most important steps they take for ensuring their company's future. Give your business the level of cyber protection it needs by reaching out to biBerk to explore coverage options and request a quote today.