Is it worth having cyber insurance?

With rising cyber threats, high-profile data breaches, and ransomware attacks making headlines across the UK, the question “Is it worth having cyber insurance?” is one that many businesses are asking.

The short answer? Yes, cyber insurance cover is absolutely worth it.

All modern businesses can benefit from cyber insurance, from tech-savvy SMEs and growing consultancies to national and international brands that handle online customer data. Keep reading as we explore why you need cyber insurance, even if you already have solid cyber security processes in place.

Contact Glowsure for more advice and get your FREE cyber risk assessment.

My business has strong cyber security measures in place. Do I still need cyber insurance?

Having strong cyber security is a great first step. It keeps your systems protected.

In fact, many cyber insurance providers will want to see that you have these measures in place before they even consider providing an insurance policy. This is how they weigh up your cyber risk. They want to know that you’re already taking cyber security seriously. And when you do, it can actually result in more comprehensive cover and cheaper cyber insurance premiums.

But while having cyber security measures is crucial, they are only preventive.

Even the best shields can crack under pressure. Just look at the recent cyber incidents with M&S and Co-op. These are major brands with solid cyber security systems in place, yet they still fell victim to cyber criminals. Co-op may have got a handle on things pretty swiftly, but they still faced some immediate damage, losing sales and private customer data. Marks & Spencer, on the other hand, expects to see a £300m hit to their annual profits, as well as ongoing disruption to their online services.

Cyber insurance shouldn’t replace your existing security measures, it should support them. It’s there to help you pick up the pieces, restore systems, and recover financial losses should you face an attack.

What’s the difference between cyber insurance and cyber essentials?

Cyber Essentials is a UK government-backed certification for cyber security and helps businesses protect themselves against cyber threats. It’s a huge step in the right direction for businesses that want to improve their cyber security measures, but it shouldn’t be confused with cyber insurance, which actively helps businesses recover losses and manage legal matters following a security breach.

Here’s a quick comparison of what’s typically included in cyber essentials and cyber security.

Why is cyber insurance increasingly important?

Think about your current business operations. Do you rely on computer systems? Cloud tools? Digital communication? If so, you could face cyber risk.

• A single ransomware attack could lock you out of your system for days
• A data breach could lead to stolen private data and customer distrust
• A phishing scam could cost thousands by exposing sensitive data

Recovering from a cyber event is costly. While cyber insurance doesn’t stop you from facing threats (that’s what your internal cyber security systems are for), it does help you recover financially and physically.

What are the benefits of having cyber insurance for your company?

Cyber security insurance provides a safety net for you and your customers. But choosing the right one is crucial. There are two types, and depending on your business, you may benefit from one or both.

First-party cyber insurance protects your business from direct damage and business downtime, while third-party cyber insurance protects you from legal issues and financial obligations to affected clients and customers.

Benefits of cyber security insurance:

Financial protection against cyber attacks

Whether it’s a ransomware demand, data loss, or a system outage, cyber insurance cover can help you recover lost revenue, replace damaged systems, and handle the cost of cyber recovery.

Third-party liability protection

If your cyber incident affects a client, customer, or supplier, third-party cyber liability insurance covers claims made against your business.

Coverage of legal costs

Breached data? Expect to notify affected customers and possibly defend yourself against legal claims. Cyber policies often cover legal fees and regulatory fines (where permitted) and provide further support with cyber compliance.

Access to cyber experts and response teams

Many policies include 24/7 access to cyber incident response teams. These are experienced professionals who help you contain threats, restore systems, and recover as fast as possible.

What types of businesses need cyber insurance?

In today’s world? Most businesses need cyber security insurance. UK businesses of all shapes and sizes are at risk, not just larger corporations.

Around 43% of businesses and 30% of charities have reported experiencing some form of cyber breach or attack in the last 12 months, according to the government’s 2025 Cyber Security Breaches Survey. And while this number has shown an overall decrease in cyber incidents since last year’s survey (primarily because fewer small businesses reported phishing attacks), the number remains high, especially for medium and large businesses.

Small businesses seem to be improving their cyber hygiene practices, too, by investing in cyber insurance, formal security policies, and continuity plans. So perhaps this shift for small businesses contributed to the decrease.

If your business:

• Stores sensitive customer or employee data
• Has a website or sells products or services online
• Uses cloud services, digital tools, or work computer systems
• Accepts card payments or digital transactions
• Relies on IT systems for day-to-day work
• Sends sensitive information through email and messaging systems
• Provides professional services (e.g. marketing, design, legal, consultancy)

…then cyber insurance is a smart and necessary investment.

Not sure where to start? Contact our cyber insurance brokers

We understand the stress of finding the right cyber insurance policy and making sure you’re covered, which is why we work with businesses (large and small) to help. We match you with a policy that actually fits your business, your risk, and your budget.

We’ll explain exactly what’s covered, what’s not (like intellectual property or hardware damage), and how you can maximise your protection without breaking the bank. Policies for low-risk businesses can start at a few hundred pounds and provide up to £1 million protection.

Call Glowsure today on 01730 239387 or visit our website to get your FREE insurance quote.

Frequently asked questions on the value of cyber insurance

Doesn’t my general business insurance cover cyber incidents?

Typically, no. Most business insurance policies exclude cyber events. The best way to guarantee cover for all incidents is to get a dedicated cyber insurance policy. And remember, not all insurance providers offer the same level of protection. If you require specific coverage, such as ransom payments, data recovery, or notifying affected customers after a breach, then you should check this before agreeing to a policy.

Is cyber insurance only for large companies?

Not at all. In fact, smaller businesses can face just as much heat from cyber threats because they often lack the in-house IT teams and resources to bounce back.

Shouldn’t my IT department take care of cyber threats?

Your IT department is focused on stopping things from going wrong, rather than cleaning up the mess. It’s their job to prevent attacks by maintaining firewalls, antivirus software, backups, and multi-factor authentication. They can detect threats and respond to incidents, but they can’t recover financial losses and reputational damage. That’s where cyber insurance comes in to support with the financial and legal fallout when things do go wrong.