A lot of small and midsize businesses these days have embraced cloud platforms, mobile apps and digital tools in order to compete and grow. This adoption has expanded their reach and increased their efficiency, but it has also created a lot of vulnerabilities that did not exist when sales were made face to face and the data lived on a local server. Attackers know that suppliers in a supply chain can provide a route into larger targets and regulators are paying attention. Customers who once trusted their vendors implicitly, now ask for documented proof that their partners can withstand and recover from a cyber attack. In the United States, the FBI’s Internet Crime Complaint Center received 859,532 complaints of suspected internet crime in 2024 and recorded reported losses exceeding US$16.6 billion. With statistics like that as a backdrop, the demand for evidence of cyber resilience is very understandable.
Why Proof of Resilience Matters
The trend toward requiring proof of resilience is driven by both market forces and regulatory scrutiny. When a small vendor is compromised, attackers can use that foothold to access the systems of a larger customer. In the U.S., the cyber insurance industry’s own data highlights why customers are scrutinizing their suppliers. The National Association of Insurance Commissioners notes that the U.S. cyber insurance market accounted for 59% of the $16.66 billion in global premiums in 2023 and recorded 33,561 cyber insurance claims in 2023.
The same report observed that 72% of small and medium‑sized businesses without cyber insurance say a major cyberattack could destroy their business. These numbers reveal a significant blind spot and as larger companies become aware of this gap, they are shifting responsibility upstream, asking suppliers to provide clear evidence of risk management. Boards are recognizing that cyber risk is a business issue rather than just an IT concern, and the rising frequency of claims emphasizes the need for tangible measures and verifiable outcomes.
The State of SMB Cyber Hygiene
Understanding how small businesses manage security helps explain why customers are asking for documentation. NAIC data show that the U.S. cyber insurance market wrote $9.84 billion in direct premiums in 2023, which is about 59% of global cyber coverages. And that the number of policies in force increased 11.7% to 4,369,741. The same report tallied 33,561 claims in 2023, highlighting the frequency of incidents. Despite rising adoption of insurance, the FBI recorded 859,532 complaints of suspected internet crime in 2024 and 193,407 phishing or spoofing incidents were reported to the IC3 that year. These numbers show that risk is pervasive even as organizations invest in defenses and insurance. At a global level, spending patterns reflect heightened concern.
Gartner forecasts that worldwide end‑user spending on information security will reach $213 billion in 2025, a 15.1% increase from 2024. The same forecast notes that generative AI is driving new categories of attacks and predicts that by 2027, 17% of all cyberattacks will involve generative AI. These figures underscore why customers and regulators are asking for robust controls. The threat landscape is evolving rapidly, and the cost of keeping pace is rising. Over the past two years I have seen a clear shift in what prospective customers want to discuss. They no longer accept vague assurances about “strong security.” Instead, they request documented policies, incident response runbooks and evidence of cyber insurance.
Building Cyber Resilience that Stands Up to Scrutiny
True resilience requires more than technology. It begins with clear policies that govern how employees use email, handle sensitive data and engage with cloud services. The rise of generative AI highlights this need, because without guidelines employees may expose proprietary information. Training and awareness programs are essential so that employees can spot phishing attempts and understand the importance of reporting anomalies. This is particularly important given that phishing and spoofing were the most reported crime types to the FBI’s IC3 in 2024, with 193,407 complaints logged.
Processes must be tested and refined. Regular exercises such as table‑top scenarios can help teams internalize their roles during an incident. Backups must not only exist but be tested to ensure they can be restored quickly. Technology solutions, including endpoint detection and response, privileged access management and network segmentation, also provide great layers of defense. SMBs need to adopt a framework for evaluating third parties and require evidence of compliance with recognized standards. This should include certifications like ISO 27001 or adherence to government‑endorsed schemes. Documentation of these activities is critical, as it allows suppliers to respond confidently when customers ask for proof and provides a record for insurance audits or regulatory inspections.
Conclusion
As SMBs continue to integrate technology into their operations, they cannot ignore the growing expectation for proof of cyber resilience. This is not simply about appeasing auditors or ticking boxes. It is about demonstrating that you take your customers’ data and the integrity of your shared ecosystem seriously.
Meanwhile, global investment in security is surging. For suppliers, the implication is clear: without documented policies, tested processes and evidence of compliance, access to contracts and markets may be restricted. For customers and regulators, demanding proof is a pragmatic response to an increasingly interconnected and unpredictable threat landscape.
Ultimately, resilience is less about checking compliance boxes and more about earning confidence. By taking tangible steps to strengthen your security posture and communicating openly about them, you show that you are prepared for adversity. In a connected marketplace where trust is hard won and easily lost, that readiness can be as valuable as any product or service you offer.
About the Author
Mirgen Hoxha is the CEO of Motomtech, a U.S. based software development firm that gives clients momentum and clarity through TDaaS or Technology Department as a Service. With more than a decade of experience leading technology transformation initiatives across multiple industries, he focuses on building resilient digital ecosystems that align with modern cybersecurity and compliance requirements. Motomtech helps clients move from idea to working product through a clear, steady process that emphasizes communication, reliability, and measurable outcomes. With experience across industries including field services, real estate, healthcare, and fintech, Mirgen focuses on practical innovation that balances performance with security and trust.
Mirgen can be reached online at https://www.linkedin.com/in/mirgenhoxha/ and at Motomtech’s website www.motomtech.com.
