Why Cyber Insurance Is No Longer ‘Optional’ in 2025
The BBC reported this week about a 158-year-old family-owned UK logistics company that collapsed after a ransomware attack locked its systems and destroyed its data. And all it took was one compromised employee password. The company couldn’t pay the ransom, and 700 jobs were lost. It’s a devastating reminder that cyberattacks don’t just happen to tech firms or multinational giants – any organization, no matter how traditional or low-profile, can be targeted.
At One World Cover, we believe the lesson is clear: cyber insurance has moved from a “nice to have” to a critical part of any organization’s risk management strategy.
One Password, Total Collapse
The company in this particular story’s systems were breached by a hacker group known as Akira. The attackers encrypted internal systems and demanded an unspecified ransom. A negotiation firm estimated the likely demand to be around £5 million – money the company didn’t have. The company could not recover and went into administration.
The company director summed it up: “One small mistake” was all it took.
Ransomware Is an International Security Threat
According to the UK’s National Cyber Security Centre (NCSC), ransomware is now the most significant cybercrime threat. The agency reports:
- It deals with a major attack every day
- Hackers look for organizations having “a bad day” and exploit any weak link
- Criminals are using increasingly low-tech methods, such as calling IT helpdesks, to breach systems
And it’s getting worse. The UK’s National Crime Agency reports that:
- There are now an estimated 35–40 ransomware attacks per week
- The typical UK ransom demand is £4 million
- One third of UK companies pay the ransom
- Many organizations still don’t report attacks
This Is Organized Crime – And It’s Thriving
The BBC story notes that public bodies may soon be banned from paying ransoms. Private companies might be required to report attacks and seek approval to make any ransom payment.
And yet, too many businesses are still gambling on not being a target.
Cyber Insurance as Part of Your Defense Strategy
Cyber insurance isn’t a silver bullet, but it is one of the most important layers of protection your organization can have – especially when paired with a proactive IT strategy and employee training. It can:
- Cover financial losses from ransomware and other cybercrime
- Fund forensic investigations and system recovery
- Support legal and regulatory response
- Cover third-party liability and reputational harm
But it must be fit for purpose. Too many policies have restrictive terms or are selected without proper benchmarking.
We work with trusted, licensed partners offering customizable cyber insurance solutions, including Lloyd’s of London underwriters.
Don’t Wait for a “Bad Day”
Every company just hopes they won’t be targeted, just like this family-owned UK logistics company. They weren’t a global brand. But that didn’t matter. A single weak password changed everything.
Whether you’re a multinational firm, a school, or a non-profit, cyber insurance isn’t just about protecting systems – it’s about protecting people, livelihoods, and your future.
Let’s make sure you’re covered. Contact us to explore your cyber insurance options today.
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