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Like your home or your car, your business is a precious commodity and should be protected. Modern businesses face a range of threats and dangers, not least the risk of a data disaster which could cost your organisation both financially and reputationally.
Cyber insurance is there to give your business a safety net against the threat of data breaches and cybersecurity incidents. It’s a way to soften the blow of such an event, strengthening your business’ survival rate and giving your priceless peace of mind.
But like any insurance, cyber insurance comes at a cost. Let’s break down what cyber insurance includes, who needs it, and whether it’s worth it.
In short: almost everyone. From global corporations to small businesses, charities, retailors and public sector organisations, technology and data are necessary for all institutions – and these elements need to be protected.
But recent figures reveal that many businesses haven’t made the investment. Arctic Wolf’s 2025 Cyber Insurance Report found that only 50% of UK and Ireland insurer clients have a cyber policy in place, meaning half of businesses remain exposed to the full financial consequences of a cyberattack. These consequences, according to the report, are averaging out at nearly £90,000.
Like all insurance, cyber insurance policies can vary widely, and it’s important for businesses to do their research and find a policy that best suits their needs. However, in general, cyber insurance is there to offer financial protection against the costs of ransomware attacks, data breaches, theft of funds, phishing, third-party liability, business interruption, crisis management and public relations support.
As technology evolved, so does cyber insurance. The 12% of insurer clients who have made cyber claims in the past year – according to Arctic Wolf, cited reasons such as AI, Large Language Models (LLMS), and data privacy challenges, reflecting a new wave of threats and demand.
Yes. Cyber risks are rising in both cost and scale, and cyber insurance can play a vital role in protecting your business, becoming a key component of any risk management strategy. For many businesses, the right policy can be the difference between weathering an attack and going under. It offers structured recovery, financial protection, and access to expert response teams.
However, a policy alone isn’t enough to prevent an attack, restore lost data or mend a broken reputation. What’s more, payouts might not cover every financial loss due to strict caps. Cyber insurance coverage also often requires businesses to meet certain security standards, such as multi-factor authentication, employee training, and incident response planning.
So while cyber insurance is essential, it shouldn’t be the only thing protecting your business. Effective insurance cannot replace strong cybersecurity practices and proactive risk management. Instead, it should work alongside them.
In addition to a comprehensive cyber insurance policy, your business’ cybersecurity measures should include regular security audits, employee awareness and training, secure disaster recovery systems, incident response plans tailored to your business needs, sensitive data encryption, updated security software, and timely system patching – to name a few. An experienced cyber security consultant like our team at SRM are a great asset here.
By understanding the importance of a layered approach to cybersecurity – one that includes cyber insurance but is not limited to it – your business will be best placed to survive and thrive within the changing digital landscape.
Ready to take your business defences to the next level? You’re in the right place. Get in touch with the experts at SRM today to find out what we can do to protect your organisation.
