Most businesses are very aware that they are facing a barrage of cyber threats on an almost daily basis, and some have recently taken the step of insuring against this risk. According to the National Cyber Security Centre (NCSC), UK businesses face an increasing volume of ransomware and phishing attacks each year. Many commercial combined insurance policies now include a cyber extension, which is a great start, but may give business owners a false sense of security. Insurance is an unusual product in that you only find out how good it is when you need to make a claim. These packaged covers are often limited in terms of the amounts and circumstances in which they pay out.
The Limits of Packaged Cyber Cover
Packaged cyber extensions typically offer modest sub-limits — often as low as £25,000 to £100,000 — and provide only basic protection for first-party losses such as data restoration or incident notification. They rarely cover more sophisticated threats like ransomware, social engineering fraud, or third-party liabilities resulting from data breaches. Business interruption caused by cyber incidents is also frequently excluded or severely limited in these extensions.
Why Dedicated Cyber Insurance Makes All the Difference
In contrast, a standalone cyber insurance policy offers far broader and deeper protection. Tailored policies can include full coverage for system outages, regulatory fines (where insurable), reputational damage, and even third-party claims. More importantly, they come with access to specialist breach response teams — including forensic IT experts, PR professionals, and legal advisors — who can help you recover quickly from an attack.
Tailored Protection for Modern Businesses
Cyber risk is not one-size-fits-all. Businesses relying on digital platforms, managing customer data, or using cloud-based services need a policy tailored to their specific risk profile. Investing in dedicated cyber insurance can mean the difference between a quick recovery and a business-threatening disruption.
Get Expert Advice from Pelican
If you’re unsure whether your current cyber cover is sufficient, and if you are fulfilling the requirements in the policy (in order for it to pay out) now is a great time to review it. Our very own Chris Braniff is probably the leading expert in Cyber insurance in the region and will happily audit your current cyber protection from both an IT and an insurance perspective.
Like all the Pelican team, Chris is friendly, knowledgeable, and just wants a great outcome for your business! Please give us a call.
