A GlobalData survey reveals a cyber protection gap among UK SMEs due to increasing threat exposure and low cyber insurance uptake. Smaller companies are the least protected, with only 13.1% of sole traders having cyber insurance compared to 63% of medium-sized firms.

Research shows 35% of UK SMEs lack cyber insurance, while 42% of small businesses experienced a breach in 2025. Experts warn that positioning cyber insurance as an optional add-on increases the risk of discovering coverage gaps post-incident, highlighting the need for improved distribution and education for insurers.

Closing the cyber insurance gap for UK SMEs requires making policies easier to understand and purchase. Insurers must enhance distribution channels, reduce underwriting barriers for smaller firms, and emphasize the importance of cyber resilience for operational continuity. Providers that offer comprehensive coverage and preventative services are best positioned to increase adoption rates.

Read more at Yahoo Finance: Cyber insurance remains underpenetrated among UK SMEs