Cyber Insurance? Why this new “trend” of cover might just save your business

Posted October 13, 2025

Previously when you spoke to your insurance broker about where you were most at risk at to suffer a loss, they probably would’ve told you it’s someone physically breaking into your property. Nowadays whilst this does still occur it could be argued you’re increasingly more likely for a hacker to infiltrate your computer system and stop you from being able to work.

Due to a lack of Cyber Insurance many notable companies have been in the news in recent times for their own losses, costing them millions if not billions of pounds:

• JLR – £1.7b in lost revenue
• M&S – £300m in lost profits (and had to shut down online trading completely for a period)
• Co-op – £206m in lost revenue
• Harrods – 430,000 customer records stolen
• Heathrow Airport – 629 flight disruptions

Many businesses believe because they’re not as in the public eye or turning over as much as the above that they will not be targeted. In reality any business that uses computers, stores sensitive data (including customer contact information), relies on the internet or utilises online transactions should think about adding Cyber cover to their insurance portfolio.

According to the Royal Institute of Chartered Surveyors (RICS) more than 25% of UK businesses have suffered some form of cyber attack in the last 12 months, an increase of 16% from the previous year. Theft of data, or ransom of your systems are things that can damage a business’s not just financially but also reputationally, causing bad press and possible loss of customers.

Cyber insurance can provide protection to a wide range of businesses large and small and can be extended to include both first- and third-party losses:

Examples of First Party Costs

• Restoration of data and systems
• Loss of business income
• Funds stolen via extortion

Examples of Third-Party Costs

• Legal action taken against a business
• Damages required to be paid to affected customers
• Compensation

Like all insurance products not every Cyber policy is the same and the coverage can be made bespoke to the needs of each business which is why you need to be working with a broker who not only understands the changeable jargon but the constant developments in cover and work to provide a tailored solution for your company.

Cape Insurance work with a vast variety of business types and requirements and have reviewed Cyber needs for large and small firms through different insurers in the market. If you want to speak to us about how we can provide another layer of protection for your business then contact the team using the information below.

Cassie Dicken BA (Hons), Cert CII