Why every business needs cyber liability insurance now more than ever

April 20th 2026

In today’s digital-first world, cyber risk is no longer a possibility, it’s a certainty. From multinational corporations to small local businesses, no organisation is immune from the growing threat of cyberattacks. With data breaches, ransomware incidents, and social engineering scams on the rise, cyber liability insurance is no longer a “nice-to-have”- it’s a business necessity.

1. Cybercrime is on the rise, and no one is too big (or small) to be targeted

In 2025 there were a number of high profile cyberattacks on large organisations such as Co-op and Marks & Spencer (M&S) which served as sobering reminders that even the most established, well-resourced brands are vulnerable.

Marks & Spencer (M&S) - £300 m loss before insurance; £136 m net profit impact after insurance

The Co-op - £206 m lost revenue; £80 m first-half profit loss; £120 m full-year effect

Jaguar Land Rover - £196 m direct cyber-related loss (company); £1.9 bn total estimated economic cost (broader)

These are not isolated events. They highlight a critical truth: cybercriminals are not just targeting financial institutions or tech firms, they’re going after retailers, service providers, schools, healthcare companies, and everyone in between.

Contrary to popular belief, hackers don’t only go after the big guys. In fact, small and mid-sized businesses are increasingly targeted because they often lack the robust cybersecurity infrastructure of larger organisations. According to recent industry reports, over 40% of cyberattacks are aimed at small businesses, many of whom never recover from the financial fallout.

Cyber liability insurance helps mitigate this risk by covering expenses related to breaches, ransomware payments, system restoration, legal fees, regulatory fines, and more. Without it, a single incident could cause financial and reputational damage that’s difficult, if not impossible, to recover from.

2. Breaches are devastating, financially and reputationally

Let’s imagine for a moment that your business experiences a breach. Whether it's customer data, employee records, or proprietary business information, once that data is compromised, the damage is swift and severe. You’ll be expected to notify affected individuals, investigate the breach, hire cybersecurity experts, and potentially defend your business against lawsuits or regulatory action.

Worse, your clients’ trust which you’ve earned over years, can vanish overnight.

Cyber liability insurance provides a financial safety net during these crises. It helps cover the costs of breach response, ransomware payments, system restoration, legal counsel, public relations, and more. In short, it helps you bounce back faster and with fewer long-term consequences. Without it, a single breach could cripple your operations.

3. Third-party risks are growing

As seen in the M&S and Co-op incidents, many breaches now occur indirectly through third-party service providers. This means even if your own systems are well-protected, your vendors and partners can expose you to risk.

Cyber policies often include coverage for liability stemming from third-party vendors, along with support services to help you assess and manage supply chain risk. In today’s interconnected world, protecting your own data isn’t enough. You need protection that accounts for your entire digital ecosystem.

4. Regulations are getting tougher

Governments are responding to rising cybercrime with tighter regulations. Whether operating under UK GDPR, PCI-DSS standards for card payments, or local data protection laws in Guernsey and the Channel Islands, your business faces increasing scrutiny and steep penalties for non-compliance.

A good cyber liability policy helps cover regulatory fines and provides access to expert resources who can guide you through reporting obligations and audits. Being insured shows your commitment to due diligence and proactive risk management.

5. Cyber insurance offers more than just a payout - they offer support

Beyond financial protection, cyber liability policies typically include access to a full suite of breach response services. This can include:

• 24/7 access to cybersecurity experts

• IT forensics and breach containment support

• Legal advice on regulatory and contractual obligations

• Crisis PR and customer notification assistance

This kind of coordinated response can be the difference between a controlled incident and a business disaster. It’s having a dedicated cyber emergency response team on call 24/7, providing you with peace of mind.

6. It’s more affordable than you think

One of the most common misconceptions we hear is: “cyber insurance must be expensive.” In reality, it’s often much more affordable than expected and dramatically less expensive than recovering from a breach.

Premiums vary based on your business, your industry, the type of data you handle and current cybersecurity measures. The good news? Many insurers now reward proactive risk management, so implementing tools like multi-factor authentication or employee training can significantly lower your costs.

7. Peace of mind in a digital world

You lock your doors at night. You carry liability insurance. Why would you leave your digital assets unprotected? Cyber liability should be viewed the same way, a foundational layer of protection in an increasingly digital business environment.

Cyber liability insurance is your business’s safety net in an environment where data is currency and downtime is costly. It empowers you to operate confidently, knowing that even in the face of a cyberattack, you have a response plan and a team ready to protect your interests.

Final thought: if it can happen to M&S and Co-op…

If household names like M&S and Co-op, with their dedicated IT teams and cybersecurity budgets can fall victim to cyberattacks, no business is truly safe. Cybercriminals aren’t always looking for the biggest target, they’re often looking for the easiest one.

Cyber threats aren’t going away, they’re evolving. Don’t wait for a breach to force your hand. By investing in cyber liability insurance, you’re not just protecting data, you’re safeguarding your livelihood, your employees, and your reputation.

Let’s talk about protecting your business

Want to know what coverage would look like for your specific business? 

If you’d like a tailored quote or just want to learn more about how a policy could benefit your business, please contact one of our team at Network. We're here to help you find the right coverage for your needs, and your budget.