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<p>Cyber risk is evolving quickly. Threats are getting more sophisticated, and the financial fallout from ransomware, business email compromise, and other incidents is becoming harder to predict. NetDiligence’s 2025 Cyber Claims Study, which analyzed over 10,000 cyber claims from 2020 through 2024, shows that small and mid-sized businesses are carrying most of the burden. Nearly all reported breaches happened to smaller organizations, not Fortune 500 giants.</p><p>For leaders of small businesses, this report is a wake-up call. Cyber risk is not just a problem for big companies. It’s a daily reality for organizations of every size, and the costs can be crippling.</p><h2>Key Takeaways</h2><h3>1. Small businesses experience the vast majority of breaches</h3><p>Nearly 98 percent of all breaches in the study happened to small and mid-sized businesses. While their average cost per incident is lower than what Fortune 500 companies face, these losses can still be devastating. For many smaller organizations, even a few hundred thousand dollars in ransomware payments, recovery expenses, or crisis services can threaten operations or long-term stability.</p><h3>2. Business interruption multiplies the damage</h3><p>When an incident disrupts operations, the costs escalate fast. For smaller businesses, a claim that includes business interruption is more than six times more expensive than one that does not. The downtime and recovery can quickly overshadow the original attack.</p><h3>3. Crisis services add up quickly</h3><p>For small and mid-sized businesses, almost half of total incident costs come from services like forensics, legal help, customer notifications, and credit monitoring. These steps are necessary to comply with regulations and rebuild trust, but they can double or even triple the overall cost of a breach.</p><h3>4. Ransomware and Business Email Compromise are still the top problems</h3><p>These two types of attacks continue to drive a large share of high-cost claims. Ransom demands have grown to staggering levels, with some reaching $150M and actual payments as high as $75M. Even when the ransom is not paid, the recovery and downtime can cripple smaller organizations.</p><h3>5. Fewer records are being exposed, but risk is still high</h3><p>The number of incidents with exposed records is going down, but that does not mean companies are safer. Many of today’s most expensive events, like ransomware and wire fraud, do not involve exposed data at all.</p><h3>6. Almost all incidents are caused by criminals<br></h3><p>Criminal activity accounts for more than 97 percent of claims for small and mid-sized businesses. Non-criminal incidents do occur, but they are rare and usually less costly.</p><h3>7. Big companies still face the biggest dollar losses<br></h3><p>Large enterprises made up only 2 percent of claims but accounted for more than half of the total financial impact. Their average incident costs were in the $10M to $12.7M range, compared to hundreds of thousands for smaller firms. While the stakes are higher at the top end, the frequency of attacks clearly tilts toward smaller organizations.</p><h2>What This Means&nbsp;</h2><p>Don’t assume you’re too small to be a target. Nearly all the claims in the study involved small and mid-sized businesses. Attackers know many smaller firms lack the same defenses as big corporations.</p><p>Have a response plan. Because crisis services like forensics, legal counsel, and notifications make up such a large portion of costs, having a plan and trusted partners lined up can prevent expenses from spiraling.<br></p><p>Look beyond stolen data. A breach that doesn’t expose customer records can still grind your operations to a halt and cost millions in downtime and recovery.</p><p>Be ready for ransomware. Backups, access controls, and good cyber hygiene are essential. Ransomware is not slowing down, and it continues to be one of the most common and damaging threats.<br></p><p>Review your insurance carefully. Coverage is changing quickly. Make sure your policy actually covers the areas where costs are growing, such as business interruption and recovery expenses.</p><h2>A Few Things to Keep in Mind</h2><p>The averages in the study can be skewed by a handful of very large claims, so not every company will see costs in the millions. Also, not every organization reports full details of their expenses, which means some costs are probably higher than the study shows. What’s important is not the exact number, but the trend: cyber claims are increasing, and the financial impact on smaller organizations is growing year after year.</p><h2>Final Thoughts<br></h2><p>The NetDiligence 2025 study makes one thing clear. Cyber risk today is not just about stolen records. It is about downtime, recovery, and the very real financial shock that comes with trying to get a business back on its feet. Small and mid-sized businesses are the ones most often in the crosshairs. The organizations that will weather the storm are those that prepare in advance with prevention, response, and recovery plans that match the realities of today’s threat landscape.</p><p>If you are wondering what this means for your business, let’s talk. You can grab a time with me here: <a href="https://calendly.com/lee-whitecaprisk/30min" data-mce-href="https://calendly.com/lee-whitecaprisk/30min">https://calendly.com/lee-whitecaprisk/30min</a>.</p><p>For a full copy of the report go here - <a href="https://netdiligence.com/cyber-insurance-claims-study/" data-mce-href="https://netdiligence.com/cyber-insurance-claims-study/">https://netdiligence.com/cyber-insurance-claims-study/</a></p><p><br></p><p><br></p>

What the 2025 NetDiligence Cyber Claims Study Tells Us About Small Business Risk.

<p>For small and mid-sized businesses, cybersecurity is no longer an IT issue—it’s a business risk. Regulatory expectations are rising. Clients are asking hard questions. Cyber insurers are tightening requirements. And business leaders are increasingly on the hook for getting cybersecurity right.</p><p>Yet most SMBs don’t have the resources—or frankly, the need—for a full-time Chief Information Security Officer (CISO). That leaves them with limited options: trying to piece things together internally, leaning on their MSP, or bringing in consultants for one-time assessments that don’t stick.</p><p><strong>There has to be a better way.</strong></p><p>At Whitecap Risk Advisors, we believe there is.</p><p>We offer a modern approach that pairs <strong>seasoned cybersecurity leadership</strong> with an intelligent platform to deliver clear strategy, measurable progress, and business-aligned results—without the cost or complexity of hiring a full-time executive.<br></p><h2>Introducing the Whitecap Navigator Service</h2><p><strong>Whitecap Navigator</strong> is a cybersecurity program management service designed for small and mid-sized organizations who want to do more than check the box—they want to lead.</p><p>Through this service, we guide your organization with the same executive-level thinking used by large enterprises, made scalable through a purpose-built platform that enables speed, clarity, and accountability.<br></p><p>Here’s how it works—and why it’s different.</p><h3>Executive Leadership at the Core<br></h3><p>At the heart of Navigator is <strong>experienced cybersecurity leadership</strong>. With over two decades advising Fortune 500s, mid-market firms, and high-growth companies, we help provide clarity, structure, and strategic direction from the start.</p><p>Unlike outsourced IT providers or plug-and-play consultants, my focus is squarely on aligning security to your business. I bring the independent, executive-level guidance that helps you:<br></p><ul><li>Prioritize what matters most</li><li>Communicate risk clearly to leadership</li><li>Navigate client and regulatory demands with confidence</li><li>Build a mature, credible program over time<br></li></ul><p>Leadership isn’t optional in cybersecurity. But it doesn’t have to come with enterprise overhead.</p><h3>Smart Assessment—Without the Disruption<br></h3><p>Navigator begins with a comprehensive, framework-aligned assessment of your cybersecurity posture. Using a modern SAAS platform, we can collect data, identify gaps, and benchmark your program against standards like:<br></p><ul><li>NIST Cybersecurity Framework (CSF)</li><li>CIS Controls</li><li>ISO/IEC 27001</li><li>And industry-specific regulatory guidance (like HIPAA, CMMC, GLBA, etc.)<br></li></ul><p>But unlike traditional assessments that rely on hours of interviews and manual checklists, our approach is:</p><ul><li><strong>Faster</strong>: Automated collection and analysis mean less time pulling data</li><li><strong>Clearer</strong>: Findings are translated into plain language and business terms</li><li><strong>Actionable</strong>: Every gap is mapped to a recommended remediation step</li></ul><p>You get a clear view of where you stand—and a confident plan for where to go next.</p><h3>Customized Roadmaps, Built for Your Business<br></h3><p>Security isn’t one-size-fits-all. That’s why we generate <strong>tailored remediation plans</strong> based on your actual risk, business operations, and available resources.<br></p><p>The platform prioritizes initiatives by impact and urgency, giving your team a roadmap that’s:<br></p><ul><li>Aligned to your goals and constraints</li><li>Easily communicated to leadership and auditors</li><li>Continuously updated as your business changes<br></li></ul><p>No vague spreadsheets. No over-engineered frameworks. Just the right next steps for your business.</p><h3>Ongoing Guidance and Accountability<br></h3><p>Cybersecurity is not a one-time event. That’s why Navigator is designed as an ongoing engagement—not just a snapshot.<br></p><p>We work with your leadership, IT team, or MSP on a regular cadence to:<br></p><ul><li>Track progress against your roadmap</li><li>Update your risk posture as things change</li><li>Support client and audit requests</li><li>Report to the board or executive team in business terms<br></li></ul><p>You stay informed, in control, and out of the weeds.</p><h3>Empowering Your IT and MSP Partners<br></h3><p>Most SMBs already have an IT provider or internal staff—but they’re not cybersecurity strategists. We don’t replace your IT team. Instead, we work alongside them—<strong>clarifying direction, reducing noise, and helping them succeed.</strong></p><p>And because we’re not managing your infrastructure, we provide independent oversight that helps:<br></p><ul><li>Ensure the right controls are in place</li><li>Identify conflicts of interest</li><li>Avoid unnecessary tools or overbuilt solutions<br></li></ul><p>When your IT team knows exactly what to do—and why—execution gets a whole lot easier.</p><h3>The Results: Clarity. Confidence. Credibility.<br></h3><p>With Whitecap Navigator, you get more than a report—you get results:<br></p><ul><li>A clear understanding of your current cybersecurity posture</li><li>A prioritized, business-aligned roadmap</li><li>Executive-level reporting for clients, boards, or insurers</li><li>Progress tracked over time—visible and measurable</li><li>The confidence to say: “Yes, we’re on top of it.”</li></ul><p>Most importantly, you’re not doing this alone. You have an experienced cybersecurity executive guiding the way—and a platform that keeps you moving forward with focus.</p><h3>Modern Cybersecurity Program Leadership—Now Within Reach<br></h3><p>For too long, strong cybersecurity programs were something only large enterprises could afford. That’s changed.<br></p><p>With the right leadership and the right tools, small and mid-sized businesses can now take a smarter, more strategic approach—without the waste, complexity, or hidden agendas.<br></p><p>If you’re ready to move past check-the-box audits and build a credible, scalable cybersecurity program that drives real value—<strong>Whitecap Navigator is built for you.</strong></p><p><a href="https://calendly.com/lee-whitecaprisk/30min" data-mce-href="https://calendly.com/lee-whitecaprisk/30min">Let's talk about how to get started.</a></p>

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What the 2025 NetDiligence Cyber Claims Study Tells Us Ab...

The Modern Way to Lead Cybersecurity: Expert-Driven, Plat...