In today’s digital-first environment, cyber threats are not a question of “if” but “when.” This grim reality was highlighted in October 2023 in a Digital Care Hub case study, Cyber‑attacks in Social Care: a case of ‘when, not if’, which recounted how Caremark experienced a devastating cyber incident through a third-party rostering provider. This incident disrupted care delivery for thousands of care providers, halted approximately £8 million per month in turnover, and lasted for months due to the absence of adequate backups.
Additional examples reinforce that digital breaches in social care can, or may already have, deleted critical employee rosters, locked out senior emails, wiped websites, and caused emotional stress for staff*. Moreover, the UK Cyber Security Breaches Survey 2025 revealed that 41% of health or care organisations reported cyber-attacks within the last year, with 66 % now having incident response plans, yet nearly one in three still remain unprepared.
The Hidden Cost of Cyber Disruption
The impact of these breaches extends far beyond technical damage. Care delivery is disrupted, reputations are tarnished, financial losses accumulate, and significant human tolls emerge. As one care sector employee reflected after a breach: “It felt like we were watching a burglary on CCTV without any power to intervene. Email accounts literally disappeared mid‑email.”
This testimony emphasises that cyber‑incidents in social care aren’t just a compliance issue—they are a direct risk to service continuity and individuals’ well-being.
Why Cyber Insurance is Non‑Negotiable
McClarrons has long championed cyber insurance not merely as a financial tool, but as a lifeline providing both response and recovery support. Our recent article, McClarrons Urges Businesses to Review Their Cyber Insurance and Security, stresses that “Cyber resilience is no longer optional—it’s a business necessity”. With phishing and human errors responsible for most breaches, having one weak link can devastate operations; a robust cyber insurance policy can provide essential protection when prevention fails.
What Cyber Insurance Can Offer Care Providers
- Rapid Incident Response
Immediate access to cyber experts, such as IT forensics, legal advisors, and PR specialists, ready 24/7 to contain, investigate, and restore systems. - Business Interruption Cover
Compensation for ongoing costs, such as payroll, supplier invoices and rented facilities, while systems are offline. - Cyber Crime and Ransom Demands
Cover for fraud, impersonation scams, and regulated payment to maintain service delivery. - Security & Privacy Breach Costs
Funding for regulatory fines, breach notifications, credit monitoring, and reputational management. - Proactive Risk Management Support
Many policies include regular vulnerability scans, security advice, and enhanced staff awareness training—helping identify and close gaps before attack.
A Perfect Storm for Care Providers
- Rising frequency and impact: Nearly half of businesses and a third of charities have faced breaches; for health and care organisations, this is nearer to 4 in 10*.
- Downtime with real-world consequences: Losing access to rostering or care records, even temporarily, can endanger service users**.
- Human error remains king: As McClarrons warns, 95% of cyber incidents are due to human error, highlighting the need for human-centred protection.
McClarrons’ Advice to the Care Sector
- Integrate cyber risk into core business continuity and care quality frameworks.
- Carry out regular cyber risk assessments, including vulnerability scans and supplier due diligence.
- Secure backups and test recovery, ideally offsite and air‑gapped.
- Implement staff training and email security filters to reduce phishing risk.
- Ensure suppliers are cyber-resilient and contractually obligated to maintain strong defences.
- Discuss cyber insurance early with your insurance broker, choosing a comprehensive policy that addresses both technical and reputational recovery.
McClarrons are here to deliver impartial guidance and tailored cyber insurance recommendations. In a field where lapses in care continuity can affect lives, protecting against cyber-attacks is critical.
To explore real-life examples of Cyber Insurance in action, take a look at our blogs here. And for expert guidance on Cyber Insurance or a complimentary review, contact McClarrons’ Care & Social Welfare Team on 01653 600477 or at care@mcclarroninsurance.com.
**https://www.digitalcarehub.co.uk/case-study/how-would-you-handle-a-cyber-attack/
