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More than 600,000 UK businesses reported a cybersecurity breach or attack in the past year, government data shows. Phishing attacks were the most common, with 85% of affected firms citing them as disruptive and time-consuming. The growing use of AI-driven impersonation has also raised concerns among smaller firms with limited resources.
Rising Cyber Risks for SMEs
In response to evolving threats, Pen Underwriting has announced six improvements to its UK SME cyber insurance cover. “Cyber risk never stands still, so we won’t either. Few, if any, areas of business risk are evolving as quickly as cyber and every coverage enhancement we introduce responds directly to challenges, changes or complexities that UK businesses are facing,” said Ian Summerfield, Managing Director of International Cyber at Pen Underwriting.
The changes aim to provide broader protection for businesses dealing with increasingly complex and costly attacks.
Six Key Enhancements to Cyber Cover
- “Pay on behalf” language lets Pen handle payments during extortion incidents, reducing delays and stress for policyholders.
- Restoration period extended from 180 to 365 days, recognizing longer recovery times after major system disruptions.
- Additional breach response costs up to £250,000 for firms with revenue under £100m.
- Full hardware replacement cover, with no sub-limits, for bricking incidents.
- Full cover for security upgrades, ensuring digital assets can be improved after attacks.
- Full cover for shutdown losses, including voluntary and regulatory system closures.
“Our process of continual review, adjustment and improvement is aimed at ensuring customers have access to the most relevant and most responsive cyber policy possible,” Summerfield.
The insurer introduced more than 20 enhancements in 2024, including an “Any One Claim” indemnity limit. The latest updates expand cyber insurance for SME coverage further, offering them faster action and stronger protection against rising cyber risks.
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