Cyber insurance for SMEs: The complete guide

Everything UK SMEs need to know about cyber insurance. Understand what it covers, how it works, how much it costs, and how to choose the right policy for your business.

12 min read

Expert guide

Reviewed by insurance experts

Key takeaways

Cyber insurance helps protect your SME from the financial losses that can result from cyber incidents.
Policies can cover costs such as data recovery, legal fees, business interruption and ransom demands.
The right cover and security practices can help your business recover faster and operate with confidence.

1. What is cyber insurance?

Cyber insurance is a type of business insurance designed to help protect SMEs from the financial losses that can result from cyber incidents such as data breaches, ransomware attacks, hacking and other IT security threats.

It can help cover the costs of responding to an incident, recovering data and systems, and managing the wider impact on your business.

2. What does cyber insurance cover?

While cover varies between insurers and policies, most cyber insurance policies for SMEs include:

Data breach response costs
Forensic investigation, notifications, credit monitoring and public relations support.
Cyber extortion and ransomware
Cover for ransom payments and expert negotiation services.
Business interruption
Loss of income if a cyber incident disrupts your business operations.
IT forensics and legal costs
Access to IT experts and legal professionals to manage your response.
Third-party liability
Claims from customers or suppliers if their data is compromised.

3. How much does cyber insurance cost?

The cost of cyber insurance for SMEs in the UK can vary depending on several factors:

• The size of your business and number of employees
• The type of data you store and process
• Your annual turnover
• Your existing security measures
• The level of cover and excess chosen

Many SMEs can get cover from just a few pounds per week.

4. Is cyber insurance right for your business?

If your business relies on digital systems, stores customer data, or sells products or services online, cyber insurance is a smart investment.

It can provide peace of mind and the financial support you need to recover quickly and keep your business moving.

5. How to get cyber insurance for your SME

Getting a quote is quick and simple. At Ragado, we compare policies from leading UK insurers to find the right cover for your business needs.

Get a cyber insurance quote →