Texas Cybersecurity Safe Harbor Law Is Now in Effect: What SMBs Should Be Doing in 2026

Texas’ Cybersecurity Safe Harbor Law Is Live – Now What?

As of September 1, 2025, Texas officially enacted a new cybersecurity law designed to protect small and mid-sized businesses from excessive legal exposure after a cyber incident.

Signed by Greg Abbott, Texas Senate Bill 2610 created a cybersecurity safe harbor for qualifying businesses that take proactive steps to protect sensitive data.

Now that we’re well into 2026, the question is no longer “Is this coming?”
It’s “Are you actually covered?”

What the Texas Cybersecurity Safe Harbor Does

The law provides protection from punitive (exemplary) damages in certain civil lawsuits after a data breach, if a business can show it had a reasonable, documented cybersecurity program in place before the incident occurred.

This is not immunity from lawsuits.
It is protection from the most financially damaging penalties—but only if the groundwork was already done.

Who Qualifies?

To be eligible under SB 2610, a business must:

  • Operate in Texas
  • Have fewer than 250 employees
  • Maintain a cybersecurity program before any breach
  • Be able to document that program 

The law is voluntary—but the legal protection only applies if these conditions are met at the time of the incident.

What Counts as a “Cybersecurity Program”?

Texas intentionally avoided a one-size-fits-all rule. Instead, the law recognizes that cybersecurity expectations should scale based on business size and risk.

At a high level, a qualifying program must include:

  • Administrative safeguards (policies, procedures, training)
  • Technical safeguards (systems, access controls, monitoring)
  • Physical safeguards (device security, facility protections) 

The expectations scale roughly as follows:

Very Small Businesses (under ~20 employees)
Basic but intentional protections such as:

  • Strong password and access policies
  • Employee cybersecurity awareness training
  • Secure system and device configurations 

Small to Mid-Sized Businesses (20–99 employees)
Alignment with foundational cybersecurity controls, including:

  • Asset and device inventory
  • Malware and endpoint protection
  • Secure remote access
  • Backup and recovery procedures 

Larger SMBs (100–249 employees)
Alignment with recognized cybersecurity frameworks, such as:

  • NIST Cybersecurity Framework
  • CIS Critical Security Controls
  • ISO 27001
  • HITRUST (where applicable) 

The goal is reasonable, defensible security—not perfection.

What the Law Does Not Protect You From

It’s important to be realistic about the limits of SB 2610.

The law does not:

  • Eliminate lawsuits
  • Protect businesses that ignored cybersecurity
  • Cover retroactive fixes after a breach
  • Override regulatory enforcement 

If a business adds controls after an incident, safe harbor does not apply.

 

Why This Matters

In 2026, the expectation has shifted.

Cybersecurity is no longer just an IT issue—it’s a legal and operational risk management decision. Courts, insurers, and partners increasingly expect businesses to show that they took reasonable steps to protect data.

This law rewards preparation, documentation, and consistency.

If your cybersecurity posture hasn’t been reviewed recently, now is the time.

 

How TeamLogic IT Helps Texas Businesses Stay Protected

TeamLogic IT works with Texas businesses to implement right-sized cybersecurity programs that align with recognized standards—without unnecessary complexity.

Our approach focuses on:

  • Practical security controls that reduce real risk
  • Clear documentation that supports legal defensibility
  • Scalable systems that grow with your business 

Cybersecurity done correctly protects more than data—it protects your business.

 

The protection is real—but only for businesses that prepared ahead of time.

If you’re unsure whether your current cybersecurity posture qualifies, it’s worth finding out before you need it.