Cyber attacks: The everyday risk to your business

Online attacks are only part of the problem. System failure and employee error can have an equally damaging impact on businesses. Ask yourself:

• Do you have the knowledge and expertise within your business to deal with such a scenario?
• Could you manage the data breach, protection of your systems, deal with data regulators and the real possibility of client complaints and compensation?
• Could you manage the recovery of your business and the protection of your reputation without help whilst running your day-to-day business?

Marks & Spencer experienced a significant cyber breach in April 2025 that compromised customer data and disrupted operations.  This led to a class action lawsuit and substantial financial implications.

Financially the impact of the cyber breach is estimated to be between £270 million and £440 million. These are the costs associated with recovery and potential compensation claims. The incident has been classified as a “Category 2 systemic event” by the Cyber Monitoring Centre, which indicates significant implications for Marks & Spencer and its partners.

The Marks & Spencer cyber breach has raised serious concerns about data security and customer protection, prompting legal actions and extensive recovery efforts by the company.

How does this affect you and your business, and ultimately, do you need cover?

If the answer is “Yes” to the following, you seriously need to consider your cyber risk.

Your business…

• Processes sensitive data, such as credit card payments/details.
• Have intellectual property (such as product designs).
• Hold personal information on your employees, customers or contractors.
• Depends on having an online service portal for customers.
• Share data with suppliers, contractors or IT service providers (including cloud providers).
• Allow employees to use their own devices to access and store company information.

So, what is at risk?

Your IT equipment, your IT-based services and your information. Cyber criminals can make use of information in many forms:

• Client lists and customer databases.
• Sensitive employee information.
• Your and your customers’ financial details.
• Deals you are making or considering.
• Intellectual property (such as product designs).

Interestingly, your funds and assets may also be at risk from cyber-crime through hacking, misrepresentation or fraudulent activity.

What Protection does Cyber Insurance Offer?

Cyber insurance protects businesses from the costs linked to data breaches and loss or damage to digital assets. It also provides cover against third-party compensation claims if your business is found legally liable in connection with online activity. Policies are flexible and can be tailored to your business needs, covering losses from both external attacks and internal errors.

Cover can include

• Breach notification costs (customers and regulatory bodies) and in some cases defence and settlement of claims costs
• Digital forensic costs, to identify the cause and the extent of a data breach.
• Legal advice to manage your response to a breach.
• Credit monitoring and ID fraud remediation where required.
• Unauthorised use of telecommunications systems
• Loss of revenue due to a system failure following a virus, hacking or denial of service attack.
• Third-party liability protection arising from the misuse of private information.
• Malicious damage and human error: costs to replace, reinstate or repair data, software and programs affected by hacking or viruses
• Cyber Extortion protection including help with ransom demands
• Inadvertent copyright infringement or libel

At the end of the day, a lot of businesses do not have the technical know-how to improve their IT security and protect their data. Cyber cover policies have access to free resources and advice to help reduce the real threat of a data breach.

The threat of a cyber attack is more likely than your premises being broken into.

Unsure what to do next?

Give us a call to discuss your needs and arrange for a quotation so you can look at the risks and the cost of protecting you from the risks.