Guide
Employers' liability: what the law requires
Why almost every UK employer must hold at least £5 million of cover, and what happens if you don't.
Read guideCompare cyber insurance
Protect your business against ransomware, data breaches and online fraud. Compare UK cyber insurance covering response costs, lost income and third-party claims.
Compare cyber insurance quotesReady to compare cyber insurance?
Run a full market comparison before you commit. It takes about five minutes and there's no obligation to apply.
How cyber insurance works
Cyber insurance covers the costs of a data breach or cyber attack, including forensic investigation, ransom negotiation, notifying affected customers and legal claims that follow.
It also typically covers business interruption caused by an attack — the income you lose while systems are down — which is often the largest part of a claim.
With UK small businesses facing a growing volume of phishing, ransomware and invoice fraud attempts, insurers now build policies around incident response as much as compensation.
What affects the cost of cyber insurance
- Annual turnover and how much personal data you hold
- IT systems, cloud usage and existing security measures
- Cover limit chosen for breach response and interruption
- Sector — finance, healthcare and retail typically pay more
- Claims or incident history
Why compare cyber insurance with us
24/7 incident response
Most policies include an incident line and forensic team on call.
Covers ransom and negotiation
Specialist negotiators and, where lawful, ransom payments are covered.
Business interruption included
Covers income lost while systems are down after an attack.
Premiums by business size
Indicative annual premiums for cyber cover including breach response and interruption, excluding IPT.
| Business size | Typical limit | Annual premium |
|---|---|---|
| Sole trader / freelancer | £50,000 | £100 - £250 |
| Micro business, 1-9 staff | £250,000 | £250 - £600 |
| Small business, 10-49 staff | £500,000 | £500 - £1,400 |
| Retailer taking online payments | £500,000 | £600 - £1,600 |
| Business holding health/financial data | £1,000,000 | £1,200 - £3,000 |
Cover limit vs annual cost
Typical cost for a small business with under 20 staff and standard IT systems.
| Cover limit | Suits | Typical annual cost |
|---|---|---|
| £100,000 | Very small businesses, minimal data held | £150 - £400 |
| £250,000 | Small businesses with customer data | £300 - £700 |
| £500,000 | Growing businesses, e-commerce | £500 - £1,200 |
| £1,000,000 | Larger client contracts, sensitive data | £900 - £2,500 |
Expert advice
Our team reviews UK commercial insurers, policy wordings and typical premiums throughout the year.
“Cyber insurance now behaves more like a service than a payout — the value is in the incident response team you get on the phone within the hour, not just the compensation.”
cyber insurance: pros and cons
Pros
- Gives you an expert response team the moment an incident happens
- Covers the business interruption loss that follows an attack, not just IT repair
- Increasingly required by larger clients as part of due diligence
- Can cover regulatory fines and legal costs after a data breach
Cons
- Basic security measures — like MFA — are often a condition of cover
- Premiums are rising quickly as ransomware claims increase
- Cover can exclude losses linked to unpatched or unsupported software
How to choose a cyber insurance policy
Cover limits and exclusions vary a lot between insurers. Check these points before you buy.
- 1
Check the security requirements
Most insurers require basic controls such as multi-factor authentication and regular backups — missing them can void a claim.
- 2
Confirm what counts as an 'attack'
Some policies distinguish between external attacks and employee error — check both are covered.
- 3
Look at the interruption indemnity period
This is how long the policy will keep paying for lost income after an attack — three months is common, but some businesses need longer.
- 4
Ask what response team is included
24/7 access to forensics and legal support in the first hours often matters more than the payout itself.
Compare cyber insurance
See what's available for your business today. It takes just minutes.
How to compare cyber insurance
It takes a couple of minutes and there is no obligation to buy.
1. Tell us about your business
Trade, turnover, headcount and the cover limits you need.
2. See matched insurers
We shortlist UK insurers and brokers who actually cover your trade.
3. Compare the full policy
Premium, excess, cover limits and exclusions — not just the headline price.
4. Buy your cover
Most policies can be arranged online with your certificate issued the same day.
Things to watch out for
Failing to maintain basic security controls, such as multi-factor authentication, is one of the most common reasons cyber claims are declined.
Ransom payments involving sanctioned entities cannot lawfully be covered — check how your insurer handles this.
Cover often excludes losses from unsupported software still running past its end-of-life date.
Our cyber insurance service
We compare cyber insurance from established UK insurers and brokers so you can see premiums, limits and exclusions side by side.
Comparing is free, and we will say plainly when your existing policy already looks like good value.
Getting started
1
Check your renewal date
Start comparing four to six weeks before renewal so you don't auto-renew onto a higher price.
2
Gather your claims history
Insurers will ask about claims from the last three to five years.
3
Confirm your cover limits
Contracts and clients often set minimum limits you must hold.
Why choose Grow Your Business?
Wide choice of providers
We compare a broad range of UK providers so you can find the option that actually fits how your business operates.
Exclusive offers
We work hard to bring you exclusive deals, switching incentives and cashback where they're available.
Simple and fast
It takes just a few minutes to compare with us — and the deal you find could be well below what you pay today.
Types of cyber insurance
The right policy depends on your trade, size and the contracts you work under.
First-party cyber cover
Covers your own costs — forensics, notification, ransom, and lost income.
Third-party liability cover
Covers claims from customers or partners affected by a breach of their data.
Cyber crime cover
Covers financial loss from invoice fraud, social engineering and payment diversion.
PCI DSS fines cover
Covers fines and costs if a card payment data breach occurs.
Providers we compare
Logos are shown for identification. We are not affiliated with every insurer listed and do not compare the whole market.
Simply Business
AXA
Aviva
Hiscox
Zurich
Allianz
Superscript
Markel
Direct Line for BusinessComparing with us is a no-brainer
“After a ransomware attack, the insurer's forensics team had us back trading within three days.”
Owen, e-commerce retailer, Sheffield
cyber insurance guides
Guide
Public liability claims that catch businesses out
The everyday incidents — a spilt drink, a dropped tool, a tripped customer — that lead to six-figure claims.
Read guideGuide
Cyber cover after a ransomware attack
What a typical cyber insurance claim pays for, from forensics to ransom negotiation and lost income.
Read guidecyber insurance FAQs
Do small businesses really need cyber insurance?
Yes — small businesses are frequent targets precisely because their defences are weaker, and the average ransomware or fraud incident can cost thousands in lost trading time alone.
Does cyber insurance cover ransom payments?
Many policies cover ransom negotiation and payment where lawful, but insurers will usually try to avoid payment through backups and negotiation first.
Will I be covered if my password security is weak?
Possibly not. Most insurers require basic controls like multi-factor authentication as a condition of cover, and a claim can be reduced or declined without them.
Does cyber insurance cover invoice fraud?
Yes, if you add cyber crime cover, which covers losses from social engineering, payment diversion and fraudulent invoices.
Written by the Grow Your Business editorial team · Updated 26 July 2026