We’re pleased to share a guest blog by Harvey Schofield, Commercial Account Executive at Howden Insurance in Chichester, offering expert insight into a growing issue affecting businesses of all sizes.
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 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.
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.
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. For tradesmen and small firms, one cyber incident could stop work, delay jobs, or lose customers. But on the upside, cover is stronger and more affordable than ever.
If you’re a local business in Chichester speak to the team at Howden Chichester to find out more about how Cyber insurance can help safeguard your business.
Howden is a trading name of A Plan Holdings, authorised and regulated by the Financial Conduct Authority.
