In today’s digital world, every business – no matter its size or sector – relies on technology to operate. From email and online banking to customer records and supply chain management, data and systems are at the heart of day-to-day operations. But as reliance on technology grows, so too does the threat of cybercrime.

The UK Government’s 2025 Cyber Security Breaches Survey revealed that 43% of UK businesses experienced a cyber attack in the past year, with phishing emails accounting for 85% of those incidents. For many, the financial and reputational impact was significant – and yet around 50% of UK businesses still have no cyber insurance in place.

So, what exactly is cyber insurance, and why should your business consider it?

What is Cyber Insurance?

Cyber insurance is designed to protect businesses from the financial, operational and reputational damage caused by cyber events. Unlike standard business insurance policies, which usually exclude cyber-related risks, a dedicated cyber policy provides cover for a wide range of incidents including:

• Phishing scams and fraudulent emails
• Ransomware and extortion attacks
• Business interruption caused by system downtime
• Data loss, theft, or corruption
• Social engineering and funds transfer fraud

Why Standard Insurance Isn’t Enough

Most traditional policies – such as property, liability or business interruption insurance – do not extend to cover cyber incidents. For example:

• If a ransomware attack forces your systems offline, standard business interruption insurance is unlikely to respond.
• If customer data is stolen or corrupted, a property policy won’t cover the costs of recovery.
• If fraudsters trick staff into transferring money via a fake invoice email, this would generally fall outside the scope of crime cover.

A standalone cyber insurance policy fills these gaps, ensuring your business isn’t left to face the costs alone.

What Does Cyber Insurance Cover?

A good cyber policy doesn’t just pay claims – it also provides access to expert help the moment an incident occurs. Typical cover includes:

• Incident response team access – IT forensics, legal advice, PR and crisis management.
• Data recovery and system restoration – covering the costs of getting you back online.
• Regulatory and legal expenses – including support with GDPR breach notifications and potential fines.
• Business interruption – reimbursement for lost revenue and additional expenses during downtime.
• Third-party liability – covering claims from customers, suppliers or partners whose data is affected.

Real-World Example

A UK manufacturer was recently hit by a ransomware attack, locking them out of their enterprise systems. While recovering, they suffered a separate social engineering fraud, losing £200,000 to a fake supplier email. Without comprehensive cyber insurance, their initial policy limit would have been exhausted after the first event. Fortunately, their standalone cyber policy included unlimited reinstatements, ensuring they had full cover for both incidents.

This case highlights the growing reality: cyber incidents are not one-off risks – businesses can be targeted multiple times in the same year.

Why Act Now?

The rise of AI-powered cybercrime means attacks are becoming faster, more frequent and more sophisticated. Criminals can now launch large-scale phishing campaigns, create realistic fake emails or even replicate voices to trick businesses into transferring funds.

Waiting until after an attack is too late. Cyber insurance gives you not just financial protection, but also the expert support needed to recover quickly and with minimal disruption.

How We Can Help

At Aldium Insurance, we specialise in arranging tailored cyber insurance solutions for businesses of all sizes. Our team works with leading insurers to provide competitive cover that complements your existing insurance arrangements.

Whether you’re an SME or a larger organisation, we can help you understand your exposure and secure the right protection for your business.

📞 Get in touch today to request a free, no-obligation quotation and take the first step towards securing your business against cyber risks.