SME Manufacturer – Cyber Liability Case Study

Overview

This company is a UK based SME manufacturer.

As a long-standing client of Caunce O’Hara Insurance Brokers for over 30 years, the business has experienced steady growth, with turnover steadily increasing to approximately £3.5m and employing around 40 staff. 

Despite operating in a traditional manufacturing environment, the company holds and processes a significant volume of sensitive data (estimated between 10,000–100,000 records), alongside increasingly digitalised operational systems. 

The Challenge

Historically, the company had not purchased Cyber Liability insurance and relied on standard business covers, which did not adequately address modern cyber exposures. 

Key risk factors identified included:

• Storage and processing of sensitive data without encryption protocols in place 
• Increasing reliance on digital systems for operational continuity
• Exposure to cyber crime, including fraudulent transfer risks
• Potential business interruption following a cyber event
• Reputational risks in the event of a data breach

While the client had implemented strong baseline IT controls—such as firewalls, malware protection, regular backups and multi-factor authentication —there remained a clear financial and reputational exposure should an incident occur. 

Our Approach

Given the client’s long-standing relationship with Caunce O’Hara, the focus was on delivering clear, pragmatic advice rather than a hard-sell approach.

Our process included:

1. Risk Assessment

We reviewed the client’s IT and operational controls, identifying strengths such as:

• Regular and tested offline backups 
• Mandatory cyber awareness training and phishing simulations 
• Strong access controls and MFA implementation 

Alongside key gaps:

• Lack of encryption for sensitive data
• No existing cyber-specific financial protection

2. Education & Engagement

We worked closely with the client to clearly explain:

• The nature of modern cyber threats (including ransomware and social engineering)
• The limitations of traditional insurance policies
• The potential financial impact of downtime, data breach notifications, and third-party claims

3. Market Engagement

A tailored approach was taken to the market, resulting in a competitive Cyber Liability quotation via NMU’s CyberSafe policy.

The Solution

A Cyber Liability policy was arranged with the following structure:

• Limit of Indemnity: £100,000 aggregate
• Cyber Crime Sublimit: £50,000 
• Excess: £2,500 (standard) / £5,000 (cyber crime) 
• Premium: £1,202.88 inclusive of IPT 

Key Covers Included

First Party Protection:

• Incident response and forensic investigation costs
• Data restoration and recovery expenses
• Ransomware and cyber extortion support
• Business interruption (loss of income and increased costs of working) 

Third Party Protection:

• Data breach liability and regulatory defence costs
• Network security liability
• Media and reputational liability 

Cyber Crime Cover:

• Protection against fraudulent transfer of funds following manipulation or deception 

The Outcome

The placement delivered a cost-effective and proportionate solution aligned to the client’s risk profile and appetite.

Key benefits to the client included:

• Financial protection against cyber-related losses and business interruption
• Access to specialist incident response support in the event of a breach
• Improved risk awareness, supported by ongoing broker engagement
• Enhanced resilience without over-engineering cover for an SME exposure

Importantly, the policy complemented the client’s existing strong IT controls, providing a financial safety net rather than duplicating preventative measures.

Key Takeaways

This case highlights several important considerations for manufacturing businesses:

• Cyber risk is not limited to “tech” companies—manufacturers increasingly rely on digital systems and data
• Strong IT controls alone do not eliminate financial exposure
• Cyber Crime (social engineering) remains a significant and often underestimated risk
• A tailored, proportionate cyber policy can be delivered at a relatively modest cost

Conclusion

Through a collaborative and consultative approach, Caunce O’Hara successfully introduced Cyber Liability protection to a long-standing manufacturing client, ensuring their insurance programme evolves alongside their operational risks.

The result is a stronger, more resilient business, with protection in place against one of the fastest-growing risk areas facing UK SMEs.