Cybercrime is no longer a distant or unlikely event—it’s a pressing and growing reality. According to the UK Government’s Cyber Security Breaches Survey 2024, 50% of UK businesses reported experiencing a cyber-attack in the past year. These are not isolated incidents affecting only large corporations; increasingly, small and medium-sized enterprises (SMEs) are bearing the brunt. That’s why we are urging businesses across all sectors to reassess their cyber security contingency plans and consider the role cyber insurance can play in protecting against the financial and operational fallout of an attack.
Watch our video of Commercial Client Advisor, Harvey Cleveland, covering some of the common queries we are asked on the topic.
Why Are Small Businesses Targeted?
It’s a common misconception that smaller businesses fly under the radar of cybercriminals. In reality, the UK Government survey found that 81% of businesses affected by cyber incidents were SMEs.
Why? Many SMEs hold valuable data—financial, personal, or healthcare-related—but often operate with outdated technology or lack robust security infrastructure. Industries such as farming and care, for instance, can be particularly vulnerable, making them attractive targets for opportunistic attackers.
Recent figures from IBM Security’s 2024 Threat Intelligence Index also highlight that sectors such as energy, retail, healthcare, education, manufacturing, and public administration are among the most frequently targeted in the UK.
Cyber Threats: A Daily Business Risk
Whether it’s phishing scams, ransomware, data breaches, or social engineering tactics, cyber threats are becoming more sophisticated and widespread.
Julian Hale, Head of Commercial at McClarrons, emphasises the urgency of preparedness: “Cyber resilience is no longer optional—it’s a business necessity. Even the most advanced IT security systems can’t eliminate all risks. Research from the UK House of Commons has shown that 95% of cyber incidents stem from human error, such as clicking on phishing links or using weak passwords. Cyber insurance adds an essential extra layer of protection—financially and operationally.”
What Does Cyber Insurance Actually Cover?
Cyber insurance is more than just a financial safety net. A comprehensive policy is designed to help businesses recover quickly and effectively following a cyber incident. Key benefits can include:
- 24/7 access to expert advice and incident response
- Threat alerts and cyber risk management tools
- Legal support and forensic investigation services
- Costs associated with data recovery and breach management
- Business interruption and reputational damage cover
This level of support can make the difference between a temporary disruption and a prolonged, costly recovery period.
What to Expect If You Make a Cyber Claim
In the event of a cyber incident, a high-quality cyber insurance policy can provide access to a dedicated response team who:
- Act swiftly to contain the threat and mitigate further damage
- Investigate the root cause of the breach and assist in recovering lost data
- Support your business with legal, IT, and PR expertise
- Cover costs associated with business interruption, regulatory fines, and more
Given the speed at which cyber-attacks can unfold—sometimes within minutes—this rapid and coordinated response is invaluable.
How Can You Strengthen Your Cyber Resilience?
While IT security measures like firewalls and staff training are essential, they cannot guarantee complete protection. Cyber insurance complements these measures by offering a financial and operational lifeline if preventative controls fail.
So, when was the last time your business reviewed its cyber protection strategy?
Speak to Our Experts
McClarrons’ Commercial Team is here to help businesses navigate the evolving cyber risk landscape. Whether you’re looking to review an existing policy, arrange a new one, or simply understand what your business’s vulnerabilities may be, we’re ready to support you.
To explore real-life examples of Cyber Insurance in action, take a look at our blogs here. For expert guidance on Cyber Insurance or a complimentary review, contact our Commercial Team on 01653 609151 or at commercial@mcclarroninsurance.com.
