🔒 Cyber Insurance

Cyber Insurance — Cover for the Modern Attack Surface

Protects your business against the costs of a data breach, ransomware attack, or system outage — from forensic investigation and legal costs through to lost income while systems are down.

  • Covers data breach response, forensics and notification costs
  • Covers business interruption from a cyber attack, not just physical damage
  • Covers third-party claims from customers whose data was compromised
  • Increasingly required by larger clients doing supply-chain due diligence
  • Most UK SMEs remain underinsured against cyber risk
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When Does Cyber Insurance Respond?

Cyber insurance responds to the direct and indirect costs of a cyber incident — not just the technical fix, but the legal, reputational and operational fallout.

💡 What it typically doesn't cover: Regulatory fines themselves are generally not insurable as a matter of UK public policy — though the legal costs of responding to an ICO investigation usually are. Cover for ransom payments is also increasingly restricted, reflecting UK government guidance discouraging payment and the sanctions risk of paying a sanctioned actor.

Why UK Businesses Need This Cover

Data protection law creates real obligations and real financial exposure — regardless of business size.

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72-hour notification

Under UK GDPR, most personal data breaches likely to risk individuals' rights must be reported to the ICO within 72 hours of becoming aware of them — a tight window that makes a rehearsed incident response, not just a policy, genuinely valuable.

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ICO fining powers

The ICO can fine organisations up to £17.5 million or 4% of global annual turnover (whichever is higher) for the most serious UK GDPR breaches. While the fine itself is generally uninsurable, legal defence costs during an investigation typically are covered.

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Cyber Essentials

The government-backed Cyber Essentials certification scheme is increasingly requested by insurers and larger clients alike — holding it can reduce premiums and is worth pursuing alongside cover, not instead of it.

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Supply chain requirements

Larger clients increasingly require suppliers to hold cyber insurance and demonstrate basic security controls as a condition of doing business — a growing reason SMEs are asked for proof of cover even when they see themselves as a low-profile target.

⚠️ Small businesses are frequent targets: Attackers often see smaller businesses as easier targets with weaker defences than larger enterprises, not as not worth attacking. Holding customer or payment data, or being connected into a larger supply chain, is enough to create real exposure regardless of company size.

How Much Cyber Cover Do You Need?

The right limit depends on how much data you hold, your turnover, and your reliance on IT systems to trade.

1️⃣

£100,000–£250,000

A common starting point for small businesses with limited customer data and modest IT dependency.

2️⃣

£250,000–£1 million

Typical for SMEs holding customer payment details or operating primarily online.

5️⃣

£1–5 million

Often appropriate for businesses holding sensitive personal data at scale, or with significant supply-chain exposure.

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£5 million+

Common for larger businesses, healthcare providers, and technology firms processing data on behalf of clients.

What to Look for in Cyber Cover

A few things worth checking before you buy, whichever UK insurer or broker you compare.

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Incident response support

Look for policies that provide access to a pre-appointed incident response team — forensics, legal and PR — rather than just a payout after the fact. Speed matters within the 72-hour ICO notification window.

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Claims-made basis

Cyber cover is typically written on a claims-made basis — check the policy is live (or a valid extended reporting period applies) when a claim is made or a breach is discovered.

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Ransom and extortion terms

Check exactly what's covered around ransomware — many insurers now restrict or exclude ransom payments, reflecting sanctions risk and government guidance discouraging payment.

FCA authorisation

Before buying, confirm any insurer or broker is authorised and regulated by the Financial Conduct Authority — check the register at register.fca.org.uk.

🤝 We're finalising partnerships with FCA-authorised UK insurers so you can compare real quotes here soon. Check back shortly, or get in touch if you'd like to be notified when comparisons go live.

Frequently Asked Questions

Yes — small businesses are frequently targeted precisely because their defences tend to be weaker, and holding even basic customer data creates real notification obligations and potential liability under UK GDPR, regardless of company size.
This varies significantly by insurer and has become more restricted in recent years, reflecting UK government guidance discouraging ransom payments and the sanctions risk of paying a sanctioned entity. Always check the specific policy wording rather than assuming payment is covered.
Generally no — fines are usually uninsurable as a matter of UK public policy. However, most policies do cover the legal costs of responding to an ICO investigation, which can themselves be substantial.
Professional indemnity covers claims arising from professional advice or services. Cyber insurance covers the costs and liabilities arising from a cyber incident — data breach, ransomware, system outage — which can affect any business regardless of sector, not just those giving professional advice.
No — Cyber Essentials demonstrates baseline security controls and can help reduce premiums, but it doesn't cover the financial cost of an incident. The two are complementary, not substitutes for each other.
Most standalone cyber policies include a business interruption element covering lost income while systems are down following a covered cyber event — distinct from traditional business interruption cover, which usually responds only after physical property damage.

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