You’ll no doubt be aware of recent cyber attacks targeting major UK retailers such as M&S and Jaguar Land Rover, and the catastrophic effect it’s had on their ability to trade.
Whilst it certainly grabs headlines when these large corporations (who spend huge amounts each year on IT security) fall foul of cyber crime, the reality is that smaller businesses are much more likely to suffer attacks of this nature. This is because scams are increasingly automated with thousands of SME businesses being indiscriminately targeted at the same time, and these types of business generally have less cyber defence and awareness.
Despite this we know that many small business owners and tradespeople still think cyber insurance isn’t for them and trust in the security software they’ve already got. Here at Howden we’re on a mission to make sure all businesses are aware that without specialist cover, they are leaving themselves open to financial loss and damage to their reputation.
Here are five reasons why cyber insurance is now essential for small firms and trades.
1. Cyber insurance is more affordable than ever
- Premiums in the UK are going down (they dropped 7% in early 2025).
- Different insurers are competing hard, which means better deals and broader cover.
- Many policies now include free extras like risk management advice.
This is the best time in years to get protection without breaking the bank.
2. New rules mean bigger responsibilities
- The UK Cyber Security and Resilience Bill, plus European rules like NIS2, now put the responsibility more than ever onto business owners and directors.
- Failing to prepare could mean fines, reputational damage, and lost customers.
Having cyber insurance shows you’re taking your responsibilities seriously and gives you a safety net if things go wrong.
3. AI is helping (and hurting…)
- Businesses are increasingly using AI to create efficiencies, but criminals are using it too.
- In 2025, the UK saw a 170% rise in deepfake phone scams.
- Fake emails and deepfake videos are becoming harder to spot.
Even well-trained staff can be tricked. Cyber insurance helps cover the costs when these attacks succeed.
4. Supply chain problems hit everyone
- In 2024, a faulty software update crashed millions of computers worldwide, costing over $10 billion.
- In 2025, Jaguar Land Rover was hit by a cyber-attack that also disrupted its suppliers.
If your customers or suppliers are attacked, your business could suffer too. Cyber insurance can help protect you from knock-on effects.
5. Mistakes happen – and they’re costly
- Most breaches start with human error: clicking a bad link, weak passwords, or sending data to the wrong person.
- Training helps, but no one is perfect.
Cyber insurance doesn’t punish mistakes. It can step in to cover losses and provide expert help when you need it most.
Why this matters for you
Cyber risk isn’t just a “big business” problem anymore. For tradesmen and small firms, one cyber incident could stop work, delay jobs, or lose customers. But on the upside, the insurance market is competitive and cover is stronger and more affordable than ever. Now is the time to protect your livelihood.
Sources: CyberCheck Labs, Business Insider
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This is a marketing blog by Howden.