Motor Trade Risk – Cyber Liability Case Study

This company is a UK-based specialist operating in the development, testing, manufacture and supply of electric and hydrogen vehicles and related technologies. 

The business has experienced strong growth since incorporation in November 2017, achieving annual revenues of approximately £15m+. 

As a technologically advanced manufacturing business, it relies on digital systems, intellectual property, supply chain interfaces, and operational technology – all of which increase exposure to modern cyber threats.

The Challenge

This company approached us to:

• Secure a competitive cyber liability solution across multiple limit options (£500k, £1m and £2m). 
• Ensure coverage extended beyond traditional data breach exposures to include: 
  • Business interruption
  • Cyber crime / funds transfer fraud
  • Incident response and recovery
• Balance premium sensitivity with comprehensive protection aligned to growth plans. 

In addition, the placement required rapid turnaround to meet client timelines. 

Risk Analysis & Cyber Exposure

Using actuarial data and external threat intelligence, a tailored cyber threat review identified:

Key Risk Drivers

• Weak email security configuration, increasing susceptibility to phishing and malware attacks 
• Exposure to human error, a leading cause of cyber incidents, accounting for 3 in 4 claims notifications 
• Reliance on digital infrastructure within a manufacturing environment

Financial Exposure Insight

• Estimated potential loss from a ransomware event: £2m+
• Ransomware represents 70% of cyber claims costs 

Typical ransomware losses include:

• Business interruption and loss of profit
• System restoration and investigation
• Legal costs and third-party liabilities 

This analysis demonstrated a clear gap between cyber exposure and traditional insurance protections, reinforcing the need for a comprehensive cyber solution.

Our Approach

We worked closely with the client to:

1. Structure the Right Cover

We prioritised a policy that addressed:

• Operational resilience (system failure, downtime, supply chain impact)
• Cybercrime exposures (invoice manipulation, funds transfer fraud)
• Regulatory and litigation risks

2. Select a Market-Leading Insurer

A CFC facility was selected due to:

• Integrated cyber security and insurance solution
• 24/7 incident response capability
• Proven claims support and proactive monitoring tools 

3. Align Coverage with Client Risk Profile

We ensured the policy responded to:

• Manufacturing and supply chain dependencies
• High-value intellectual property exposure
• Increasing reliance on digital systems and automation

The Solution

A CFC Cyber Proactive Response policy was arranged providing:

Core Policy Features

• £1,000,000 Any One Claim cover across key sections 
• £250,000 Cyber Crime sub-limit including:
  • Funds transfer fraud
  • Invoice manipulation
  • Supplier fraud 
• Cover includes:
  • Incident response & forensic investigation
  • Legal and regulatory costs
  • Crisis communication
  • System damage and business interruption
  • Reputational harm protection 

Key Differentiators

• ‘Any One Claim’ limit structure preserving full limits following a loss (unlike aggregate erosion models) 
• No aggregate deductible across the policy 
• Worldwide territorial scope supporting growth ambitions 

Added Value: Embedded Cyber Risk Management

A key factor in the placement was the additional cyber security services included at no extra cost, with an estimated external value of £16,900 annually. 

These services include:

• 24/7 incident response access
• Vulnerability scanning and threat monitoring
• Phishing simulation testing
• External asset discovery
• Real-time threat intelligence 

This effectively positions the policy as both risk transfer and risk management tool, improving the client’s cyber resilience.

Outcome

• ✅ Comprehensive policy placed within client budget expectations
• ✅ Strong alignment between insured limits and estimated loss scenarios
• ✅ Significant uplift in cyber preparedness and response capability
• ✅ Clear demonstration of value beyond premium (insurance + services)

The final premium for the £1m solution (including cyber crime extension) totalled £6,634.20 inclusive of taxes and fees. 

Conclusion

This case highlights the importance of:

• Linking real-world cyber exposure (e.g. £2m+ ransomware risk) with appropriate limit selection
• Moving beyond traditional insurance into proactive cyber risk management
• Structuring solutions that support operational continuity for technology-driven manufacturers

By combining strong market access with a consultative approach, we were able to deliver a solution that not only protects this company financially but also strengthens its resilience against an evolving cyber threat landscape.