CFC insures SMEs against a cyberattack on a key customer
The specialist insurer’s new extension pays out when a customer hit by hackers cancels orders, a gap it says the Jaguar Land Rover attack laid bare across the carmaker’s supply chain
- The extension is sold by endorsement on Cyber Proactive Response and is open to all sectors and geographies.
- CFC says Cyber Proactive Response writes proactive attack-prevention services into the policy wording.
- Cyber Proactive Response launched in April 2025 for businesses with revenue up to $250m (£186m).
Security leaders at suppliers should add customer concentration to the cyber risk register alongside their own systems and suppliers. Work out which customers account for most of the revenue, model how long cash would last if one stopped ordering for a month, and take that figure to the broker. Then read the existing policy’s dependent business interruption wording closely to see whether it names customers or only suppliers.
“The immediate and unexpected cancellation of orders as a result of a customer suffering a cyber attack places immense pressure on an SME’s cash flow, that can sadly prove terminal for many.”Scott Bailey, head of global cyber underwriting, CFC
CFC, the specialist insurance provider, launched a customer business interruption extension to its Cyber Proactive Response policy for SMEs on 8 January 2026. It covers income lost when a major customer suffers a cyberattack and cancels orders for a period.
CFC says cyber insurers have long covered businesses hit directly by an attack or caught up in an attack on their suppliers, but not the exposure when a customer is the victim, and that the new cover fills that gap. It is aimed at any small business that earns a material share of revenue from one customer, with manufacturing and wholesale and distribution named as the clearest fits.
Scott Bailey, CFC’s head of global cyber underwriting, pointed to the attack on Jaguar Land Rover (JLR), which he said forced the carmaker to cancel orders with hundreds of suppliers. When the government agreed a loan guarantee of up to £1.5bn for JLR in September 2025, it said much of JLR’s supply chain was made up of SMEs, employing around 120,000 people.
Sources
- CFC, “CFC launches groundbreaking extension to its flagship SME cyber cover”, press release, 8 January 2026. https://www.cfc.com/en-gb/knowledge/news/2026/01/cfc-launches-groundbreaking-extension-to-its-flagship-sme-cyber-cover/
- CFC, “CFC reinvents cyber insurance with launch of new product”, press release, 2 April 2025. https://www.cfc.com/en-gb/knowledge/news/2025/04/cfc-reinvents-cyber-insurance-with-launch-of-new-product/
- Department for Business and Trade, “Government backs Jaguar Land Rover with £1.5 billion loan guarantee”, press release, 28 September 2025. https://www.gov.uk/government/news/government-backs-jaguar-land-rover-with-15-billion-loan-guarantee
