When a 160-year-old haulage company, Knights of Old, was forced to close its doors after a devastating cyber-attack, it sent a clear warning to businesses everywhere: no one is immune. Despite having what they believed were robust security protocols, the company’s critical financial data was corrupted by hackers, leading to administration and the loss of 730 jobs. The story is a stark reminder that even well-prepared organisations can fall victim to increasingly sophisticated cyber threats.
The real-world impact of cyber attacks
- Business closure: Knights of Old’s experience shows that a single cyber incident can have existential consequences, especially for firms without the resources of major corporations.
- Reputational damage: Beyond financial loss, the reputational fallout can be severe, eroding customer trust and future business prospects.
- Operational disruption: Even large retailers like Marks & Spencer and the Co-op have faced significant disruption from cyber incidents, proving that size is no guarantee of safety.
Why cyber insurance matters more than ever
Cyber insurance is designed to help organisations recover from precisely these scenarios. It provides financial protection and access to expert support when a breach occurs, covering costs such as data recovery, legal fees, business interruption, and even ransom payments in some cases. The rise in ransomware-as-a-service and the growing complexity of attacks mean traditional defences are no longer enough.
Key takeaways for business leaders
- No one is too small: Smaller firms are particularly vulnerable, often lacking the financial reserves or in-house expertise to recover from a major attack.
- Insurance complements security: Cyber insurance is not a substitute for strong security practices, but it is a vital component of a comprehensive risk management strategy.
- Review and update regularly: The threat landscape evolves rapidly. Regularly review your coverage to ensure it matches your current risk profile and business operations.
Final thought
As Paul Abbott, director at Knights of Old, urges: “Whatever you think you’ve done, seriously get it checked by experts. People don’t think it’s going to happen to them. Cyber insurance won’t prevent an attack, but it could be the difference between recovery and closure.
Is your business prepared for the worst-case scenario?
If you’re unsure about your cyber resilience or insurance coverage, now is the time to act. Let’s discuss how you can protect your organisation against today’s evolving threats.
