Did you know that 39% of businesses are affected by invisible criminals that want to cause them harm?

As part of our ongoing insurance series with, Trudi Kelly, Senior Broker at Medilink partner, MFL speaks about how to protect your business from cyber criminals, what defines a cyber event and important things to look out for.


Whilst this sounds like the plot of a Netflix movie, online scams created by criminals hiding behind their computers are on the rise.

And not just for consumers, they are also on the rise for businesses.

The insurance industry’s answer to helping businesses is called Cyber Cover or Cyber Insurance. Let’s look at what Cyber Cover is and how it can help your business.

The name Cyber Cover consists of two elements:

  1. The act of online criminal behaviour is called a ‘cyber’ event.
  2. And Cyber ‘Cover’ is the insurance-based service businesses can purchase to support them if they suffer an event.

How often are cyber events happening?

The short answer is that they are happening more than you think. But we only ever hear about a cyber event when it’s reported in the national media.

In the recent Cyber Security Breaches Survey by the Department of Digital, Culture, Media and Sport, 39% of UK businesses suffered a cyber event to their business in 2021. 31% of companies suggest they experience a cyber event at least once a week.

Some businesses are more attractive to criminals than others, namely for the bigger paydays! Interestingly, we are seeing that smaller businesses are being targeted more and more. It is thought that as larger businesses are investing in Cyber Security, small businesses become more attractive targets because they tend not to have the same level of cyber security.

What types are cyber events are there?

Unfortunately, even some of the most switch-on, tech-savvy individuals and teams can fall victim to cyber events. While there are numerous types of criminal activities occurring online, there are a few common cyber events to be aware of:


The cost of a cyber event

Data gathered by the department has shown that for incidents with material outcomes – meaning money or sensitive information was lost – medium-sized and large firms lost an average of £19,400 in the past 12 months, up from £13,400 from the previous year. However, the average dropped to £4,200 when considering smaller businesses.

It could be argued that the impact on smaller businesses is much more significant as they won’t have the cash reserves to pay for the cyber event. Large firms are also more likely to have some form of Cyber Insurance Cover to pay for these events.

Cyber Cover can help you.

Cyber Cover is an insurance policy, but it should be seen as an insurance service, just like your Boiler Cover and Breakdown Cover is.

It is an assisted service provided by specialist cyber companies who will support you if a cyber event affects your business or a client’s ability to operate, aiming to get you back up and running as soon as possible.

It also carries a financial element which can reimburse you if you’re a victim or suffered a loss of income or if a claim is made against you by a client whose data, network or systems have suffered a breach.

[caution: we recommend you review your policy documentation as Cyber Cover may have been excluded in your last renewal]

Cyber Cover typically covers two types of party

You may not have Cyber Cover

Before 2022, most insurers would have included a limited Cyber Cover as standard in Professional Indemnity, Management Liability or Office Insurance policies.

As the claims in this area have become more frequent and larger losses are incurred by insurers, at the start of 2022, all insurers imposed Cyber Cover exclusions to most of these insurance policies.

Meaning you would now need to purchase a standalone Cyber Cover policy.

MFL can help

There are still a lot of different Cyber Cover Insurance policies out on the insurance market at the moment, but they are not all the same. We see many products which have differing cover levels and added value services.

We recommend speaking to your insurance broker about Cyber Insurance.

We would be happy to review your current insurance position if your current insurance broker is unable to help you.


Contact TRUDI today to discuss your insurance needs. If you want TRUDI to call you back at a convenient time, drop her a message using the form stating when you are available. She will then be in contact with you.

We look forward to helping you find what you’re looking for.

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