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What happens if my business network gets hacked and my data gets breached?

We hear about data breaches all the time on the news and assume it is large businesses like Target or Anthem Healthcare. Small businesses don't think a hacker would bother with them since they are small. However, hackers have breached half of the 28 million small businesses in the US. [2016 State of the SMB Cybersecurity Report] This is something that no business owner wants to go through - network security breached, sensitive customer data taken and business secrets potentially exposed. Will there be lawsuits? Am I in compliance will all government/state regulations? Does my insurance cover this? Is the network vendor responsible?

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