Could Your Manitoba Small Business Survive a Cyberattack?

October 20, 2025

Hackers target and attack small businesses, too. Your Manitoba business doesn’t have to be big to face a cyberattack that could potentially ruin it. Cyber insurance helps financially protect your small business against online attacks.

Did you know? Cyberattacks are continuing to grow and cyber liability insurance is one of the fastest emerging insurance coverages for businesses.

Do small and medium-sized businesses in Manitoba need cyber insurance?

If you have customer data and financial information related to your business or customers stored on computers and your server, you could be at risk for a cyberattack or data breach.

You could also be at risk for a cyberattack if you accept online payments.

Who needs cyber liability insurance?

You use computer/cloud systems to store your data.
You provide software or hardware services
You use point-of-sale systems for payments.
You store customer/patient data, such as financial, medical or credit card data.

Important: Hackers can demand small amounts, $20,000 to $50,000 from multiple small businesses, rather than attack one big company for a large amount.

What is cyber liability insurance?

Cyber liability insurance provides your Manitoba small business with financial support if it suffers damage or loss because of a data breach or cyberattack, or if clients sue you as a result of the breach or attack.

Small businesses often have weak or no cyber security defenses, making them easier targets for opportunistic cyberhackers.

What costs does cyber insurance help cover?

Repair and restoration of damaged software systems
Forensic investigations
Legal advice and expenses
Crisis management services
A team to help respond to your affected customers
Cyber extortion
Regulatory expenses and fines
Coverage for losses sustained due to a system outage resulting from a cyberattack.

What kind of cyberattacks could Manitoba small businesses face?

Ransomware: It’s a type of malicious software (malware) that restricts access to a computer system or data, usually by encrypting files, until a ransom is paid to the attacker.

Ransomware can be spread through phishing emails containing malicious attachments or links. It can also be distributed via drive-by downloads, where a user unknowingly visits an infected website that silently installs the malware on their device without their knowledge.

Phishing: Cyberattackers send fake emails, impersonating trusted people or organizations to trick you into performing harmful actions. These actions include clicking on malicious links that lead to fake websites designed to steal login credentials, personal data and financial data, or opening infected attachments that deploy malware. The attacker exploits trust to steal sensitive data such as financial information, passwords, or to gain access to accounts.

Malware: Malware is malicious software intended to damage, disrupt, or gain unauthorized access to computer systems or networks. It can monitor user activity and capture sensitive data like passwords or credit card numbers, then transmit that data to cyber attackers. Malware types include spyware (which secretly spies on users), keyloggers (which record keystrokes), ransomware (which locks or encrypts files), and Trojans (which disguise themselves as legitimate programs to infiltrate systems).

Denial of service attack: A cyber hacker floods a website with more traffic than it can handle, making it impossible for legitimate visitors to access the site.

Spoofing: A cyber hacker imitates people or companies and even computers with the intent to trick people into giving up personal information to steal information, spread malware, attack a computer system, or bypass access controls.

Brute force: A brute force attacks tries to decode encrypted data or crack passwords by repeatedly trying possible combinations until access is gained.

What consequences can a cyberattack have on a Manitoba business?

They can include:

Ransom payments
Downtime
Lost customers
Legal fees
Reputational harm to your business
Regulatory fines
Fees to inform your customers of a breach
Potential lawsuits from customers

Other cyber liability coverages you can consider for your Manitoba business

Privacy breach liability: Coverage for breach of privacy law or the disclosure of protected and personal information.

Business interruption: Coverage of actual loss and extra expense if there’s a network outage caused by hacking, a virus, or a breach.

Final thoughts

Protecting your Manitoba small or medium-sized business against cyberattacks with cyber insurance is smart financial decision. Can you afford not to be protected with cyber insurance?

5 FAQs

Why are small businesses targeted by cyberthieves?

Small businesses often have weak or no cyber defenses making them easy targets for opportunistic attackers. Does your Manitoba business fit this profile? Many small businesses in Canada do not yet have cyber insurance despite the rising threats.

What is excluded in cyber liability insurance?

Common exclusions in Canadian cyber liability insurance are losses resulting from unlawful, malicious, or deliberately fraudulent acts committed by the insured. Attacks by cyber hackers (outside parties) are usually covered. Claims from utility failures, such as electricity, internet), unless caused by a covered cyber event, are generally excluded, too. Damages caused by acts of war, invasions, terrorism, or civil disorder are also typically excluded from cyber insurance coverage.

How much does cyber insurance cost?

In Canada, cyber insurance typically starts at around $550 yearly for small businesses. Companies that handle financial or healthcare information can expect to pay $1,000 or more annually due to increased risk and coverage needs.

How can my Manitoba business lower its cyber insurance cost?

Having a well-documented plan for responding to cyberattacks indicates to your insurer that your business can manage a cyber incident, reducing potential losses and claims. This can help reduce your premium. Since human error is a leading cause of breaches, educating your staff on phishing, social engineering, and safe cyber practices helps lower risk and insurance costs. Did you know? You can also pay a higher deductible to lower your cyber insurance cost.

Are phishing attacks most common against Canadian small businesses?

Yes, phishing attacks are among the most common cyber threats faced by small businesses in Canada. About 61% of small and medium-sized enterprises reported experiencing phishing attempts. Phishing is a type of cyberattack where malicious actors send fraudulent emails, text messages, or even phone calls that appear to come from a trusted source to trick people into revealing sensitive information like passwords, credit card numbers, or other personal data.