Cybersecurity is not a new topic, but recent developments make it essential to reassess your cyber insurance coverage. The UK Government's has launched recent initiatives aimed at bolstering cyber resilience. So there has never been a better time to ensure your business is adequately protected. Most cyber insurance policies can start from as little as £430 +VAT. This can provide you with peace of mind in an increasingly digital world.
The landscape of cyber threats is constantly evolving. Here are some key risks and common cybercrimes that should prompt you to review your coverage:
Read our article ‘Do you really understand cyber risk?’ for more insights into the way cyber risk can present itself in your business.
The financial impact of a cyber incident can be staggering. Consider the average system outage: how long would it take for your business to lose revenue? Recovery can take days, if not weeks, depending on the severity of the incident. While the media often focuses on ransomware and data breaches, the silent threat of being locked out of your systems can be just as damaging. For instance, the recent incident involving M&S. It reportedly cost the company on average £3.8 million a day in online sales while offline. This highlights the urgent need for robust cyber insurance.1
Many businesses still operate with inadequate cyber cover. This can leave them vulnerable to significant financial losses. These can include related costs from data destruction for example.
Historically, cyber insurance has been viewed as cost-prohibitive, leading many businesses to forgo coverage. However, recent statistics reveal a shift in the market. Marsh’s latest Global Insurance Market Index indicates that cyber insurance premiums have seen an 8% reduction, with 78% of cyber clients benefiting from lower rates. This change is part of a broader trend, as global commercial insurance rates declined by 3% in the first quarter of 2025, marking the third consecutive decrease following seven years of increases.2
Cyber insurance costs shouldn't be a barrier to protecting your business; you can now access coverage from as little as £430 +VAT, making it a viable option for many businesses. Many clients are leveraging this increasingly competitive landscape to negotiate better terms, enhance their coverage, and explore alternative risk transfer solutions such as self-insurance and captives.
Traditional insurance products and/or third party coverages generally don't provide enough cover to protect against today's cyber risks. So how does cyber insurance work? Dedicated cyber liability insurance typically covers a range of incidents, including:
To secure cyber insurance, it’s crucial to have certain measures in place, start by reading our 12 key controls to help strengthen your cyber security.
Having cyber insurance is vital to protect businesses. But it does not replace the need for robust risk management. Consider the potential impact of a cyber loss on your business and take proactive steps to mitigate risks. Key elements to have in place include:
Now is the time to take action. Contact your Marsh Commercial adviser today to review your cyber insurance coverage. Protect your business from the evolving cyber landscape and ensure you have the right safeguards in place. Your business deserves the best protection—let us help you achieve it.
Sources
1. theguardian.com
2. Marsh Global Insurance Market Index, Q1 2025