On average, 19% of businesses and 14% of charities have been victims of at least one cyber crime in the past year in the UK (1), as released by a government survey in April 2026. What business owners can expect going forward is an increase in cyber risk as criminals are becoming more technically efficient and businesses move away from analogue tools.

Business owners can prepare for this increase in risk using their insurance portfolio. Below we will explore what Cyber Liability Insurance is in the UK and why it is now an essential form of protection and risk management for businesses.

 

What is Cyber Liability Insurance UK?

According to the Association of British Insurers, “Cyber Insurance covers the losses relating to damage to, or loss information from, IT systems and networks” (2). Due to the ongoing shift in businesses moving away from analogue tools, such as paper documents and filing systems, towards online platforms, our insurance advisers are now recommending a Cyber Liability policy to all clients where they deem it necessary for their businesses and assets.

 

 

What are Cyber Risks in the UK?

To understand what Cyber Liability Insurance can cover for UK businesses, having an idea of which risks could affect your organisation is a good place to start. A cyber risk may not necessarily be an attack from criminals, even employees within the business can become a cyber risk if they unknowingly cause a data breach.  A cyber risk may also look like:

  • Ransomware Attack
  • Third Party Data breach
  • Network Failure
  • Identity Fraud

Incidents and cyber risks can take many forms, especially since attackers are up-skilling in their methods of attack. A comprehensive Cyber Liability policy will not just provide financial reimbursement in the event of a cyber incident but also contribute to a businesses overall risk management programme.

 

What does Cyber Liability Cover?

Protecting an organisation’s data, networks and IT systems will vary from business to business. For instance, a dental practice’s Cyber Liability policy will vary from a Cyber Liability policy which a financial services company would take out. As specialist insurance providers for healthcare organisations, we understand the sensitivity and value that patient data holds for healthcare organisations. This is also alongside an increasing reliance on digital platforms to support day-to-day business operations.

Below is what our clients would typically expect to see covered in their Cyber Liability policy documents:

Business Interruption Cover – a Cyber Liability policy is designed to cover costs associated with cyber-attacks or breaches; in rare cases this can even mean closure of the business. Business Interruption is included in your coverage in this unforeseen circumstance.

Network failure – will include cover for lost income or additional expenses due to the network down time.

Regulatory legal costs – designed to support businesses in the rare instance a government investigation or enquiry is brought against you.

Data breach notification costs – helps to provide financial assistance to notify patients or those affected by a data breach.

Data restoration and programme recovery costs – for example if a hacker is holding your system ransom and you have been financially implicated.

Some businesses may choose to opt in or out of certain covers depending on their exposures. If this is the case for your business, an adviser will be able to determine the most appropriate insurance options available to you.

 

Additional Risk Management

Some risk management services will be included in your Cyber Liability policy and will help deter cyber criminals from targeting your business. If your business makes use of a website, this can be a significant exposure for the practice and will require additional risk management to prevent a cyber incident.

Risk management services may include the cyber insurer running ongoing checks on your business’ website to test how susceptible it would be to an attack or offer 24/7 hotline services. A hotline service can be especially useful if you need immediate advice, even if you are not sure you have been attacked.

Cyber incidents can be devastating for UK businesses and will often require immediate attention to stop further escalation. Significant attacks can prompt business interruption, costly claims from patients involved in data breaches and even reputational damage from negative press releases.

Many organisations may think that they are protected if they use third parties to help handle their data, however, the business itself will most likely be held accountable in the event of any cyber incidents. This makes a Cyber Liability insurance policy an essential part of both an organisations insurance portfolio but also approach to risk management.

 

Cyber incidents can be devastating for UK businesses and will often require immediate attention to stop further escalation. Significant attacks can prompt business interruption, costly claims from patients involved in data breaches and even reputational damage from negative press releases.

Many organisations may think that they are protected if they use third parties to help handle their data, however, the business itself will most likely be held accountable in the event of any cyber incidents. This makes a Cyber Liability insurance policy an essential part of both an organisations insurance portfolio but also approach to risk management.

 

Lloyd & Whyte’s Specialist Cyber Liability

Lloyd & Whyte’s Cyber Liability insurance policies can be specialised depending on your businesses needs, risks and requirements. Our insurance providers have experience providing specialist Cyber Liability insurance for:

 

If you would like to get in touch with one of our insurance advisers for your free Cyber Liability quotation, contact us today:

 

 

 

 

 

References

  • https://www.gov.uk/government/statistics/cyber-security-breaches-survey-20252026/cyber-security-breaches-survey-20252026#:~:text=The%20prevalence%20of%20cyber%20crime,%25%20in%202025%2F2026).
  • https://www.abi.org.uk/products-and-issues/choosing-the-right-insurance/cyber-insurance/what-does-cyber-insurance-cover/