Cyber insurance from HSB
Comprehensive solutions for micro, small, and medium-sized businesses
Cyber risk awareness is rising but readiness is not, according to research
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Cyber risk has rapidly evolved from a specialist concern into a core exposure for micro, small, and medium-sized businesses across almost every sector. Yet while awareness has increased, many small and micro businesses are still approaching cyber risk with outdated assumptions, creating gaps that brokers cannot afford to overlook.
Placement decisions in cyber are no longer simply about price and limits; they require a deeper understanding of how customers will actually respond when, rather than if, an incident occurs.
Research from HSB among 600 UK SMEs highlights the scale of the issue. More than half (55%) of respondents expect to experience a cyber-attack within the next 12 months, and 84% believe the impact would result in operational disruption and lost revenue. However, this growing awareness is not matched by preparedness. Only 31% of micro businesses report having a documented incident response plan, and fewer than half (46%) have provided staff with cyber security training in the past year.
Cybersecurity myths putting small businesses at risk
This disconnect is being driven, in part, by persistent misconceptions about cyber risk which, in turn, can directly influence how customers buy insurance and how brokers place it.
One of the most common myths is the belief that smaller businesses are unlikely to be targeted. In reality, cyber criminals often view SMEs as more accessible entry points, given their typically lower investment in security and limited in-house expertise. The result is a false sense of security that can lead to underinsurance or, in some cases, no cover at all.
Another misconception is that purchasing a cyber insurance policy is, in itself, sufficient protection. While financial cover remains essential, it does not address the immediate and highly-technical challenges that arise during a live cyber incident. In practice, the effectiveness of a response, particularly in the early stage, can significantly influence the overall cost and severity of a loss.
Unsurprisingly, HSB's research shows that nearly two-thirds of SMEs would look to external technical experts as their first port of call following an incident. This underlines a key consideration for brokers: access to rapid, specialist support is not a "nice to have", but a central part of the cyber risk solution.
A further assumption is that basic IT controls are enough to mitigate cyber exposure. While fundamental controls remain important, they are increasingly being tested by more sophisticated and automated attack methods. Without a tested response plan and access to expert guidance, even relatively well-protected businesses may struggle to contain and recover from an attack effectively.
The need for specialist support
Taken together, these misconceptions point to a broader shift in the broker's role. Cyber placement is no longer solely focused on mitigating risk, it's about helping customers build resilience. That means considering not only the scope of cover, but also how a policy responds in practice, and what support is available when it matters most.
This is where integrated solutions are becoming increasingly relevant. For example, our HSB CyberPro insurance product, accessible via our e-trade solutions, has been developed specifically for micro, small, and medium-sized businesses, combining a 24/7 cyber helpline and incident response service, and comprehensive cyber insurance all in one policy.
In the event of a suspected attack, businesses are able to draw on expert support to help contain the issue, manage the immediate impact, and guide the recovery process, addressing one of the key capability gaps identified in SME preparedness.
Did you know?
Following valuable broker feedback, HSB increased its HSB CyberPro product's each occurance policy limits on both Acturis (under 'Cyber NOW') and HSB Fast Track from £500,000 to £1 million, with limits now available for £750,000 and £1 million. This provides greater scope to align protection with customers' evolving exposures, particularly as digital dependency continues to grow across smaller businesses.
HSB CyberPro: An overview
Acturis tutorial video
How to obtain a quote for HSB CyberPro
Ultimately, the challenge, and opportunity, for brokers is to move the conversation beyond cyber as a standalone product and towards cyber as a supported solution. By challenging long-held myths and focusing on the practical realities of how incidents unfold, brokers can differentiate their advice, strengthen customer relationships, and support more confident, informed placement decisions.
In an environment where the threat landscape continues to evolve, those conversations are becoming not just valuable, but essential.
HSB's cyber insurance solutions
Learn more about our comprehensive cyber solutions for micro, small, and medium-sized businesses.