As cyber threats rapidly grow in scale and sophistication, small and medium-sized enterprises (SMEs) across the UK face increasing risks. While larger corporations may have the resources to withstand the financial and reputational fallout from a cyberattack, SMEs are often left exposed and underinsured. With cybercrime surging, it’s no longer a question of if a business will be targeted, but when.
Cyber Threats Are Rising
A 2024 report by QBE Insurance Group revealed a staggering 104% year-on-year increase in cyberattacks. Alarmingly, 78% of IT decision-makers surveyed said they were concerned about the threat of cybercrime to their organisations (Life Insurance International).
These aren’t just isolated incidents. Phishing, ransomware, data breaches, and business email compromise attacks are affecting businesses of all sizes. For SMEs without dedicated cybersecurity teams, the consequences of a cyber-attack can be catastrophic. Ranging from operational disruption and financial loss to long-term brand damage.
Most SMEs Remain Underinsured
Despite the mounting risk, many SMEs are still not properly insured. According to GlobalData’s 2025 UK Commercial Insurance Broker Survey, only 40.2% of SMEs currently hold cyber insurance. That leaves a significant majority vulnerable to the financial fallout of a potential attack.
Is Cyber Insurance Right For You?
Cyber insurance is no longer a niche product. In fact, it’s emerging as the most in-demand coverage category among UK brokers. Over 53% of brokers surveyed cited cyber as the most promising area of growth, far ahead of other emerging products such as renewable energy insurance (8.8%) and AI-related liability (7.6%) (Life Insurance International).
What This Means for SMEs
For SMEs, the implications are clear:
- You are a target: Cybercriminals know smaller businesses often lack robust security infrastructure.
- The cost of an attack can be devastating: From ransom payments and legal fees to lost income and reputational damage.
- Cyber insurance is no longer optional: It’s an essential part of risk management in a digitally connected economy.
As the cyber threat landscape continues to evolve, SMEs must act decisively. Cyber insurance provides a critical safety net, ensuring that when (not if) an attack occurs, your business can recover quickly and survive the financial hit.
If you’re an SME owner, now is the time to evaluate your coverage and speak with a broker about comprehensive cyber insurance options.
