Overview and key points
There’s a lot going on in the world today – particularly when it comes to the economy, trade and employment.
As a result, businesses are facing challenges including the rising cost of materials, unreliable supply chains and increasing staffing costs.
And the threat of a cyber attack is not going away with phishing attacks remaining the most prevalent and disruptive type of breach or attack.
We’ve identified three key risks that we believe ALL business owners should review in the current climate:
Key takeaways
Business interruption – is your insurance fit for purpose?
Cyber risk – are you aware of the current threats – or what to do if your business suffered an attack?
Your people – how to attract and retain talent in a challenging financial climate
Business interruption
According to the Business insights and impact on the UK economy: 3 April 2025 report from the Office for National Statistics:
- In late March 2025, nearly a third (32%) of businesses with 10 or more employees reported they had some form of concern about their supply chains over the next 12 months;
- Of those businesses, 53% reported that they expect to be impacted by the increased costs of sourcing materials.
And
These figures are both up from the previous reports in September and December 2024.
Business interruption insurance (BI) protects your business income in the event of an incident causing you to cease trading for a period of time. Having the right level of cover in place is vital and, being underinsured could leave you out of pocket.
The time it takes for your business to get back to normal following an event that causes interruption is known as the “period of indemnity”. Calculating this correctly can help protect your income and cash flow during a period of down time when your business can’t operate. It can often take longer than you might think to bounce back.
For example, if your company premises were destroyed by fire, factors such as planning permission and building inspections could easily add to the timeframe to rebuild. And that’s before you think about the current supply chain issues which are particularly prevalent in the building and construction sector.
What if a piece of specialist equipment breaks down or is stolen. How quickly could that be replaced? Can you operate without it?
If your BI limit isn’t adequate, you may not be able to cover the full estimated loss of earnings during a period of reinstatement, leaving you financially vulnerable.
You don’t have to wait until your renewal date to review your insurance cover and make updates to protect against emerging risks. Take action today to build resilience in an uncertain world.
Cyber risk
The risk of suffering a cyber attack remains a very real threat to businesses with just over four in ten businesses (43%) and three in ten charities (30%) reported having experienced any kind of cyber security breach or attack in the last 12 months (Cyber Security Breaches Survey 2025).
According to the National Cyber Security Centre’s Annual Review (published December 2024), the top sectors reporting ransomware activity into the NCSC this year were academia, manufacturing, IT, legal, charities and construction. Elsewhere, cyber criminals’ are using artificial intelligence (AI) to increase the volume and heighten the impact of cyber attacks.
In the event of a data breach or malicious cyber attack that could interrupt your business, having the right cyber insurance can provide the critical support needed to get back up and running.
And knowing what to do in the event of a cyber attack is crucial. Talk to our cyber insurance experts to find out more.
Recruitment and retention
The recent increase in employer’s national insurance brings additional financial pressure and challenges to attracting and retaining the right people for your business.
“People Risk” refers to the human factors that could impact and harm your business – from a demotivated workforce with low engagement to the loss of a key person. Your people have the power to enhance as well as damage your business’ performance and reputation. As the pace of the working environment continues to accelerate, preventing burnout and safeguarding employee wellbeing is critical for a business to succeed.
Many businesses in the UK want to provide a leading benefits package but are facing the challenges of increasing employee related costs. Considering salary exchange can reduce National Insurance costs for both employers and employees enabling the improvement of other valued benefits and boosting take-home savings for employees.
By investing in your people, you’re not only attracting top talent but also fostering loyalty and commitment within your existing team.
Got a question? Want to know more?
Contact our expert
