Cybersecurity & Cyber Insurance

Cyber insurance is a type of business insurance that helps protect organisations from the financial impact of cyber incidents such as data breaches, ransomware attacks, system outages and unauthorised access to systems or data. It typically covers recovery costs, legal expenses and incident response support.

Most SMEs benefit from cyber insurance because they are increasingly targeted by cyber attacks but often lack dedicated in-house security teams. Cyber insurance helps reduce the financial impact of incidents and supports faster recovery if systems are compromised.

Cyber insurance policies vary, but commonly include support for incident response, forensic investigation, data recovery, business interruption, regulatory response, legal costs and crisis communications following a cyber incident.

Exclusions vary by insurer, but cyber insurance typically does not cover unpatched known vulnerabilities, poor security practices, or incidents caused by failure to maintain basic cybersecurity controls.

Cyber insurance is not legally required in the UK, but it is often required by customers, supply chain agreements or regulators in certain industries. Many organisations also choose it to improve resilience against cyber risk.

Yes. Achieving Cyber Essentials certification can improve your organisation’s ability to obtain cyber insurance, and in some cases may provide access to additional benefits such as entry-level insurance options for eligible SMEs.

Cyber insurance premiums are typically based on factors such as business size, industry, annual revenue, data sensitivity, and the strength of existing cybersecurity controls.

ABS helps organisations improve their cybersecurity posture and meet insurer expectations so they are better prepared to apply for cyber insurance. This includes strengthening controls, reducing risk exposure and supporting Cyber Essentials certification where required.