In a digital age where technology powers nearly every aspect of business operations, cyber threats have become one of the biggest risks for small and medium-sized enterprises (SMEs). With incidents increasing in frequency and complexity, cyber insurance is no longer optional—it’s essential. At Baldersons Insurance, we help businesses of all sizes prepare for, respond to, and recover from the damaging effects of cyberattacks. Here’s why cyber insurance matters more than ever.
Cyber Threats Are on the Rise
Recent high-profile cyberattacks—such as the one targeting Marks & Spencer—highlight the growing threat businesses face. That particular attack, which disrupted operations and wiped out nearly £750 million in company value, serves as a wake-up call not only to major retailers but to SMEs as well.
While M&S managed to recover with significant resources and support, most small businesses aren’t so lucky. According to Cybersecurity Ventures, 60% of small businesses close their doors within six months of a cyberattack. That statistic alone underscores the value of robust cyber insurance.
Why SMEs Are Especially Vulnerable
SMEs are often considered prime targets for cybercriminals. Here’s why:
- Limited budgets and IT expertise mean SMEs frequently lack robust cyber defences.
- Assumptions that cyberattacks only affect big companies can lead to underpreparedness.
- Employees with little or no cyber awareness training increase vulnerability to human error.
- AI-powered phishing scams and supply chain attacks are becoming harder to detect, especially for smaller teams without dedicated security staff.
What Cyber Insurance Covers
- A comprehensive cyber insurance policy can provide a lifeline to SMEs by covering:
- Data recovery and rectification costs
- Legal fees and regulatory fines related to data breaches
- Lost profits due to business interruption
- Customer notification and public relations support
- IT forensics and cybercrime investigations
- Ransomware payments and extortion-related expenses
This type of cover doesn’t just provide financial relief—it connects SMEs with expert help at the exact moment they need it most.
Real-Life Lessons from the M&S Attack
The M&S cyberattack stemmed from a social engineering tactic that exploited their IT help desk’s password reset process. Although customer data was not stolen, the operational damage was immense, costing the retailer an estimated £15 million per week.
The National Cyber Security Centre (NCSC) has since urged businesses to strengthen internal systems and review protocols. But even with strong defences, no system is impenetrable. That’s where cyber insurance steps in—to cushion the financial and operational blow of an incident.
Why Choose Baldersons Insurance
At Baldersons Insurance, we understand that SMEs operate with limited resources and face unique risks. That’s why we:
- Tailor policies to match your size, industry, and risk profile
- Provide access to leading cyber response teams and consultants
- Offer proactive risk management support to help prevent attacks
- We don’t just offer policies—we offer peace of mind.
Cyber insurance is more than a policy—it’s a partnership in resilience. As threats continue to evolve, so should your defences. Don’t wait for a breach to realise what you should have had in place.
Contact Baldersons Insurance today to learn more about how cyber insurance can protect your business, safeguard your reputation, and support your recovery when it matters most.
