Overview and key points
In 2025, cyber crime is one of the biggest threats to business resilience, with 8.58 million incidents reported in the UK last year and a 230% surge in insurance payouts. Yet, only 10% of SMEs globally have cyber cover, leaving many exposed to financial and reputational damage. This article explains why cyber insurance is no longer optional, how modern policies offer proactive protection, and why adding cyber risk to your register is critical. From high-profile breaches to practical tools like the NCSC Cyber Action Toolkit, discover how to safeguard your business against 21st-century risks.
Key takeaways
• Cyber crime is a top business risk in 2025, with 8.58 million UK incidents reported.
• Cyber insurance is essential—not optional—for financial and reputational protection.
• Modern policies offer proactive features like attack monitoring and real-time alerts.
• Adding cyber risk to your register builds resilience and operational security
8.58 million
cyber crimes in the past year
43%
of businesses hit at least once
230%
surge in cyber claim payouts
Why Cyber Risk Dominates Today’s Landscape
In 2025, business risks extend far beyond fire, theft, and flood. Today, liability, people risk, and especially cyber crime dominate the landscape. The question is: how resilient is your business?
Cyber Crime Facts
The UK Government’s 2025 Cyber Security Breaches Survey reports 8.58 million cyber crimes in the past year, with 43% of businesses hit at least once. The Association of British Insurers (ABI) notes a 230% surge in cyber claim payouts, urging companies to make cyber insurance a core part of their risk management.
Is Cyber Insurance Optional?
Far from it. Even large firms like Jaguar Land Rover can suffer severe disruption if systems fail. Digital dependency means downtime impacts supply chains, payments, and communications—costs rarely budgeted for. Beyond financial loss, reputational damage can be devastating. Yet, Swiss RE reveals only 10% of SMEs globally have cyber cover, often due to the misconception they’re not targets.
Cyber Insurance Works
Contrary to myths about exclusions, cyber insurance delivers. The good news is that cyber insurance works! The Association of British Insurer’s cyber claims information revealed a 230% year-on-year increase in the amount paid out to support businesses with cyber-attacks in 2024, £138 million more than in 2023. Policies now include proactive features like attack monitoring and real-time alerts, helping businesses strengthen defenses.
Building Resilience
Cyber insurance isn’t just reactive—it promotes better operational hygiene. Adding cyber risk to your register builds better resilience. High-profile breaches at M&S, Harrods, and Co-Op prove no business is immune. The National Cyber Security Centre’s Cyber Action Toolkit is a great starting point.
The Bottom Line
Cyber attacks pose as much threat as traditional risks. Cyber insurance is a proven tool to safeguard financial and operational stability. The critical question isn’t if you’ll be targeted, but how prepared you’ll be when it happens.