Cyber risks: Are you prepared?

Cyber risks come in many forms, and every one of them can disrupt your operations, damage customer trust, or stop your business trading altogether. In the first of a series of guest articles looking at all aspects of insurance we examine those risks and their potential impact

 

By Dean Conway, head of the commercial broking team at IC Insurance

INTERNAL RISKS

These are risks occurring from within the business – often by simple human error or overlooked processes.

Human error contributed to 95 per cent of data breaches in 2024, driven by insider threats, credential misuse and user-driven errors, according to a recent study by information security company Mimecast.

Common examples include:

• Sending sensitive information to the wrong recipient
• Failing to secure or properly store data
• Skipping essential software updates, leaving systems exposed
• Not training staff to spot phishing attacks
• Not implementing Multi-Factor Authentication (MFA)

 

EXTERNAL RISKS

These occur when a third party puts your business at risk.

• Customers or Suppliers: A breach, a virus transmission, or lost data may lead to allegations against your business.
• Managed Service Providers (MSPs): If your MSP suffers a cyber incident, your systems could go offline – meaning you can’t trade.

 

CRIMINAL RISKS

These are deliberate, targeted attacks aimed at stealing data, money, or both.

Most attacks start with a phishing email, giving criminals a foothold in your network. Once inside, attackers quietly explore systems – sometimes for months – before striking.

Almost half of UK businesses have suffered a cyber breach in the past year. That equates to approximately 612,000 businesses, according to the UK government’s Cyber Security Breaches Survey 2025.

And new research has revealed that nearly one in three manufacturers have been hit by cyber incidents directly or through their supply chain, with disruption increasingly affecting production, costs and customer delivery.

Cyber security is no longer just an IT issue for manufacturers but a core production, supply chain and business continuity risk, according to the research from Make UK.

It found that that 30 per cent of UK manufacturers had experienced a cyber incident over the past 12 months, either directly or through their supply chain.

Where incidents had an impact, the most common consequences were production downtime and increased operational costs.

 

THE REALITY

Cyber risks are everywhere – and they can impact any business that uses email, stores data, or relies on technology to function.

If your business isn’t protected – or insured – you’re carrying the full financial and operational risk alone.

We are a team of experienced insurance brokers working together with our customers to understand and fulfil their insurance needs.

Based in Bolton, our story began in 2009, initially helping people with their life insurance and financial service insurance needs, later providing a service to individuals and companies to manage their personal and business insurance.

• To discuss any issues raised by this article please contact me or one of my colleagues on 01204 565 600