Why It Matters More Than Ever in 2026
And why reviewing your cyber‑risk management isn’t optional anymore
Cybersecurity used to feel like something that only large corporations needed to worry about. But today, small and medium‑sized businesses are just as exposed—and, in many cases, more vulnerable because attackers know SMEs often lack the resources to respond effectively.
Recent industry research shows that nearly three‑quarters of UK SMEs have suffered a cyber incident in the past five years, yet more than a third no longer maintain standalone cyber insurance. That gap leaves many businesses exposed financially, operationally, and reputationally.
As an insurance broker, our role is not only to place cover but to help clients understand the risks they face and to build resilience. Cyber threats evolve quickly, and the past year has reinforced how essential ongoing cyber risk management—and appropriate insurance protection—really is.
Below are four major trends every SME should be aware of in 2026, along with steps you can take now to strengthen your defences.
1. AI‑Powered Attacks Are Now Everyone’s Problem
Generative AI has transformed how criminals operate. It allows attackers to:
- Create convincing phishing emails
- Clone voices and executives for payment fraud
- Produce deepfaked videos and messages
- Automate personalised scams at scale
These techniques were once targeted at large corporates. Now, any business can be impersonated or manipulated using AI.
What your business should do
- Enforce strong payment verification (dual approval, call‑backs to trusted numbers)
- Provide regular staff training so employees know how to spot AI‑enhanced fraud
- Ensure your cyber policy clearly covers losses from social engineering and deepfake‑related incidents
These attacks are harder to detect—so preventative measures and well‑structured insurance cover are more important than ever.
2. IT and Cloud Outages Can Halt Operations Overnight
High‑profile technology outages—such as those seen in recent years—show how dependent businesses have become on a small number of cloud and software suppliers. A single vendor issue can interrupt:
- Customer service
- Point‑of‑sale systems
- Logistics and supply planning
- Internal communication
Many SMEs incorrectly assume they are covered for these “non‑attack” outages, only to discover gaps in their insurance wording when an event occurs.
What your business should do
- Maintain and test business continuity and disaster recovery plans regularly
- Document manual workarounds for critical activities
- Clarify whether your cyber policy covers outages caused by third‑party failures, not only direct attacks
In a world where operations are increasingly centralised, resilience requires both planning and the right policy in place.
Would your business benefit from a review of its current cyber insurance policy? Plan Insurance Brokers can review your liabilities and ensure suitable protection is in place to safeguard your business. If you have any questions or would like to speak with our expert team, simply request a call back.
3. Ransomware Is Evolving — and Costs Go Far Beyond the Ransom
Modern ransomware is no longer just about encrypting your data. Attackers now combine:
- Encryption
- Data theft
- Threats to leak sensitive information
- Harassment of your customers or partners
Even when businesses refuse to pay (as we’ve seen with several recent high‑profile cases), the recovery can be lengthy and expensive. Costs typically include:
- System rebuilding
- Forensic investigation
- Legal and regulatory support
- Customer notifications and PR management
- Lost revenue from operational downtime
What your business should do
- Test your backups regularly—these are your lifeline
- Build and rehearse an incident response plan
- Review cyber policy limits and ensure access to expert response services is included
Ransomware is now a crisis‑level event. Robust preparation and insurance support can dramatically reduce the impact.
4. Supply Chain Breaches Are Becoming the Weakest Link
Even if your own systems are secure, any supplier, contractor, or software partner could become the entry point for an attack. SMEs often assume vendors “have it covered,” but when something goes wrong, the operational and financial fallout often lands with the end business—not the supplier.
What your business should do
- Ask suppliers about their cybersecurity standards
- Include cyber requirements in contracts
- Understand where your data is stored and who has access to it
- Ensure your insurance covers losses caused by third‑party breaches or failures
Outsourcing a process doesn’t outsource your risk.
Cybersecurity Is Not an Annual Tick‑Box Exercise
All four of these trends point to one clear conclusion:
cyber risk is dynamic, fast‑moving, and constantly evolving.
Cybersecurity isn’t something that can be reviewed once a year at renewal. It requires:
- Continuous improvement
- Ongoing staff awareness
- Regular testing and policy review
- Alignment between technology controls and insurance protection
As your broker, we’re here to support you not just at renewal, but throughout the year—helping you understand your exposures, improve your resilience, and ensure that if an incident does happen, you have the right cover and expert support in place.
Let’s Strengthen Your Cyber Strategy for 2026
If you’d like to:
- Review your current cyber insurance
- Assess gaps in your cyber risk management
- Understand your exposure to AI threats, ransomware, or supply chain risks
- Arrange a cyber resilience check‑in
We’re here to help. Click here to visit our Cyber Liability Insurance page and get protected.
Cyber risk isn’t going away—but with the right planning and protection, neither does your business.
