Banking & Finance
Energy & Utilities
Business Insurance
Broadband & Phones
Payment Solutions
Guides & Advice
Banking & Finance
Energy & Utilities
Business Insurance
Broadband & Phones
Payment Solutions
Guides & Advice
You're in safe hands...
logo

Our trusted partner Bionic, has experts who handle the comparison for you and guide you through your quotes.

Compare Business Energy
Banking & Finance
Energy & Utilities
Business Insurance
Broadband & Phones
Payment Solutions
Guides & Advice
Banking & Finance
Energy & Utilities
Business Insurance
Broadband & Phones
Payment Solutions
Guides & Advice
Compare Businesses Broadband from top providers
logo

We compare our best Business Broadband deals to find the ideal solution for your business.

Get Connected
Guides & Advice

Find everything you need to decide which Business Broadband plan is right for you.

headshot
Why Is My Business Broadband Slow?
Read all Business Broadband guides >
Banking & Finance
Energy & Utilities
Business Insurance
Broadband & Phones
Payment Solutions
Guides & Advice
Menu
Banking & Finance
Energy & Utilities
Business Insurance
Broadband & Phones
Payment Solutions
Guides & Advice
Banking & Finance
Energy & Utilities
Business Insurance
Broadband & Phones
Payment Solutions
Guides & Advice
Banking & Finance
Energy & Utilities
Business Insurance
Broadband & Phones
Payment Solutions
Guides & Advice
Popular right now...
logo

CASHBACK OFFER - Enter code 150BOOST when you sign up for a Tide business bank account T&C's apply*

Compare Bank Accounts
Banking & Finance
Energy & Utilities
Business Insurance
Broadband & Phones
Payment Solutions
Guides & Advice
You're in safe hands...
logo

Our trusted partner Bionic, has experts who handle the comparison for you and guide you through your quotes.

Compare Business Energy
Banking & Finance
Energy & Utilities
Business Insurance
Broadband & Phones
Payment Solutions
Guides & Advice
You’re in safe hands...
logo

Our trusted partner Bionic, has experts who handle the quote for you and you through your options.

Compare Business Insurance
Guides & Advice

Secure your business with the right insurance. From contents to cyber, we've got you covered.

headshot
What Happens if My Business Insurance Lapses?
Read all Business Insurance guides >
Banking & Finance
Energy & Utilities
Business Insurance
Broadband & Phones
Payment Solutions
Guides & Advice
Compare Businesses Broadband from top providers
logo

We compare our best Business Broadband deals to find the ideal solution for your business.

Get Connected
Guides & Advice

Find everything you need to decide which Business Broadband plan is right for you.

headshot
Why Is My Business Broadband Slow?
Read all Business Broadband guides >
Banking & Finance
Energy & Utilities
Business Insurance
Broadband & Phones
Payment Solutions
Guides & Advice
Compare our best card machine offers from leading suppliers.
Guides & Advice

Set yourself up to take (and make) payments easily.

headshot
Hard vs Soft Credit Checks: What to Know
Read all Payment Solutions guides >
Banking & Finance
Energy & Utilities
Business Insurance
Broadband & Phones
Payment Solutions
Guides & Advice
Trending

Find our most popular recent guides here.

Trending

5 Years Later: 5 Business Impacts of Brexit

Five years after the United Kingdom left the European Union, small businesses across the country are still feeling the effects.

20231222-just-56-smes-confident.png

1 year ago

1 in 5 SMEs Unaware of Cyber Insurance

In an era when digitisation shapes the business landscape, the threat of cyber attacks looms large, casting a shadow over businesses of all sizes. New research conducted by Aviva has unearthed alarming statistics, revealing that one in five businesses in the UK fell victim to a cyberattack in the past year.

As the digital world evolves, SMEs may find themselves grappling with the implications of increasing cyber threats.

A Growing Challenge

Aviva's study, which surveyed over 1,200 businesses spanning various industries, highlights a concerning reality. Cyber incidents have now surpassed physical thefts and fires as the leading risk faced by British business owners. SMEs, in particular, are vulnerable.

Despite the escalating risk, a notable gap remains in the adoption of cyber insurance. A mere 36% of British businesses report having some form of cyber coverage. This disparity is even more pronounced among SMEs, where less than one in five have a policy, and an equivalent proportion is unaware that such insurance even exists.

A shocked woman looking at a computer screenStephen Ridley, Aviva's Head of Cyber, said: "The low take-up of cyber insurance, coupled with the relatively high incidence of an attack, highlights the serious nature of the cyber risk facing businesses."

The study also sheds light on the differing rates of cyber insurance adoption based on business scale. ‘Mid-market’ businesses lead the way, with 51% having coverage, followed by the large corporates at 45%. SMEs are being left behind, with only 17% holding a cyber insurance policy, indicating a critical need for increased awareness.

Diving into the Data

Aviva’s research identifies the top concerns businesses harbour regarding cyber attacks, with loss of data at 54%, malware attacks at 46% and operational disruption at 43%. Among those affected, disruption to operations is a significant and costly issue with 31% of victims impacted. Financial losses amount to an average of £21,000 per incident.

56% of businesses express confidence in their cyber security measures, even as only 51% claim to know the necessary steps to take in the event of an attack. Among SMEs, a mere 39% report knowing the related protocols.

What Does Cyber Security Cover?

Cyber insurance, sometimes called ‘cyber liability insurance’ or ‘cyber risk insurance’, is designed to shield businesses from the inherent risks associated with storing and managing digital data. This coverage extends to the accountability of a company in the event of data breaches involving sensitive customer or employee information.

Instances that warrant a cyber insurance claim include unintentional and intentional breaches, including accidental breaches caused by an employee and targeted attacks involving hacking, extortion or ransomware.

Cyber insurance provides coverage for various financial aspects including:

  • Investigating the incident

  • Recovering lost data

  • Restoring computer systems

  • Identifying and eliminating viruses

  • Potential loss of income

  • Costs associated with reputation management

  • Payments for extortion demanded by attackers

  • Claims from third parties seeking damages

  • Hiring IT professionals to address the issue

  • Legal expenses

The Bigger Picture

It’s becoming increasingly imperative for businesses, especially SMEs, to fortify their cyber security. Aviva's research serves as a wake-up call, highlighting the urgent need for enhanced resilience and the adoption of specialised insurance policies.

Businesses, brokers and insurers should collaborate in closing the cyber protection gap, ensuring a robust defence against the escalating risks of the digital age.

Find a Cyber Insurance Policy

At BusinessComparison, we can empower your business to navigate the intricate landscape of cyber insurance and discover the most fitting policy tailored to your unique needs. Our team of experts provide a comprehensive comparison of various cyber insurance options, considering factors such as coverage, cost and specific business requirements.

Let us Help Your Business

We help you compare essential business products and services, ensuring you get the best deal and helping you with your bottom line. Save time and money with us by comparing today.

Business Loans icon

Business Bank Accounts icon

Invoice Finance icon

Business Energy icon

Business Broadband icon

Card Machines icon

Business Credit Cards icon

Business Insurance icon

Leased Lines icon

https://images.businesscomparison.com/img/sam.jpeg

Published by Sam White

Sam has his finger on the pulse of industry news and the challenges and opportunities for British SMEs. He understands what matters to business owners, having worked alongside companies of all shapes and sizes, from a local paper to a construction equipment supplier. Away from his desk, our football-mad writer is a proud co-owner of our local side Chester Football Club.