The emerging landscape of cyber threats is growing in complexity and impact. Cybersecurity continues to grow as a critical issue for small and medium-sized businesses, as cyber threats become more sophisticated. To build resilience against cyber threats, businesses need to implement both technical and financial measures. One such measure is risk transfer through cyber insurance. This article provides an analysis of the current state of cyber threats, discussing trends in cyber-attacks, based on a review of existing literature, publicly available datasets, and Federal Bureau of Investigation reports. It explores the sectors and industries most frequently targeted by cybercriminals and examines the role of cyber insurance in the protection and recovery of businesses in these sectors, with a particular focus on small and medium-sized businesses. Finally, the article discusses and assesses key policy reforms needed to ensure that businesses are able to get cyber coverage and insurers are able to continue to offer it.