What I Usually Say When Clients Tell Me ‘Cyber Isn’t Really a Risk for Us’

By Ray Dunbar, Insurance Broker, Dawson Insurance

October is Cyber Security Awareness Month, which is a good prompt for me to check in with clients about a topic that’s often misunderstood: cyber insurance.

When I bring it up with business owners, especially smaller operators, I’m often met with a pause.
They’ll usually say something like:

“I’m not sure we need it. We’re not really a target.”
“Our IT guy handles all of that.”
“We’ve never had any issues; we’re in the cloud.”

And to be fair, those are all reasonable thoughts. Most businesses don’t feel especially exposed, because their day-to-day isn’t filled with tech jargon or hacking threats. But that’s exactly why these conversations matter.

 

Small businesses aren’t immune. They’re often just overlooked until something happens

These days, most cyber incidents are automated. They don’t discriminate by business size or industry.
Attackers use tools to scan for vulnerabilities like weak passwords, outdated systems, or a staff member who clicks the wrong link. It’s less about targeting and more about opportunity.

And when something does happen, the impact on a small or medium business can be huge. Systems go down, invoices get intercepted, data gets locked or stolen. You’re left dealing with downtime, lost income, and the stress of putting everything back together.

 

What I usually say when these topics come up

“We’ve already got a good IT provider.”

Your IT provider plays a key role in prevention, but they’re not responsible for covering legal costs, customer notifications or the downtime your business might face after an attack. That’s where the right insurance makes a difference.

 

“We’re not very digital.”

You’d be surprised. Even the most hands-on businesses rely on email, online banking, Point-of-Sale or customer contact records. If those go down or get locked, you can’t operate. That’s a digital risk, and it’s more common than you think.

 

Cyber cover isn’t about scare tactics.  It’s about keeping businesses running.

For me, cyber insurance is a lot like property insurance.
You hope you never need it, but if something goes wrong, it helps keep things moving. And just like a fire can stop your business in its tracks, a cyber event can do the same. Sometimes more quietly, but just as disruptively.

It can help cover things like:

• Business interruption:
  If your systems go down or you can’t access key files, cyber insurance can help cover lost income while you’re getting back online.
• Data recovery:
  Whether it’s customer records, job bookings, or financial info, cover can help pay for the cost of restoring your data after an attack.
• Letting your customers know:
  If client information is exposed, you may be legally required to notify them. Cyber cover can help with the costs of doing this properly—and professionally.

• Legal support:
  If you need help understanding your obligations, or if legal action is taken against your business, cover can help with legal fees.
• Access to experts:
  You’ll have access to people who deal with this stuff every day—not just IT people, but response teams who can step in straight away to help manage the fallout.

 

Let’s take a look together

Whether you’ve already got cyber cover in place or none at all, it’s worth checking how well protected your business really is.
Cyber risks don’t always feel urgent — until they are. And at that point, having the right cover and the right support can make all the difference.
If you’re unsure where to start, let’s talk. I’m always happy to walk you through it.

Kia ora, Ray

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