Business & Technology
UK SMEs fear cyber attacks most, Hiscox survey finds
Cyber attacks are the top concern for UK SMEs, according to Hiscox. Its survey found that 38% of respondents ranked cyber attacks or data breaches as the risk most likely to keep them awake at night.
The findings are based on a study of 1,000 UK small and medium-sized enterprises and form part of a wider survey of 6,250 small business owners across six countries.
The research also highlights wider pressure on smaller companies, with owners facing rising costs, staff issues and legal risks. Overall, 92% of UK business owners said worries about risks to their business were affecting their sleep.
Inflation or rising costs came a close second among UK concerns at 37%, followed by workplace accidents or employee injuries at 35%. Economic downturn and theft or property damage each scored 33%. Natural disasters such as floods or fires were cited by 29%, lawsuits or legal claims by 28%, and staff shortages by 27%.
The data also points to a gap between awareness of threats and understanding of insurance cover. Among UK SMEs, 77% said they did not understand cyber insurance, while 80% said they did not understand professional indemnity cover.
That lack of confidence comes despite cyber risk topping the list of concerns and legal claims troubling more than a quarter of businesses. Globally, only 20% of SMEs correctly identified what professional indemnity insurance covers, the report found.
Hiscox said 55% of UK SMEs have a protection gap, suggesting that concern about risk does not always translate into a clear understanding of what insurance would respond to in practice.
Alana Muir, Head of Cyber at Hiscox, said the findings showed a widening disconnect between anxiety about threats and preparedness for their financial and operational consequences.
“Small businesses today are navigating a more complex risk environment than ever before: evolving cyber threats, changing workforces, rising legal costs, and the weight of knowing these risks exist without always knowing how to manage them. But awareness alone doesn’t equal protection. What the Global Protection Gap Report shows is the growing gap between businesses that know something could go wrong and those that truly understand whether they’d be covered if it did.
“Unsurprisingly, the areas where SMEs are most exposed are often the ones they feel least confident about. Cyber is a prime example. It tops the list of concerns, yet 77% of small business owners admit they don’t fully understand what a cyber policy covers. The same is true of professional indemnity, where eight in ten (80%) SMEs say they don’t understand the cover, despite legal claims keeping more than a quarter of them awake at night.
“The reality is that misunderstanding your cover can be almost as costly as having none at all. A business that believes it’s protected, but isn’t, may be less likely to seek advice or review its policies, which can leave gaps in cover,” Muir said.
Cyber cover
Muir also warned smaller firms against assuming they are too small to attract cyber criminals, noting that the practical impact of an incident can extend well beyond any immediate financial loss.
“It’s easy to assume your business may not be a primary target for cybercriminals. However, cyber attacks are not limited by business size, and SMEs are increasingly part of the threat landscape.
“Make sure your policy covers the full fallout of an incident, including data recovery, business interruption and customer notification costs, not just the immediate financial impact,” Muir said.
The insurer also highlighted other areas where cover may no longer match how a business operates. Employers’ liability insurance is usually a legal requirement for businesses with staff, including temporary or seasonal workers, and some micro-business owners remain unaware of that obligation.
On property insurance, the report noted that policies taken out when a company was smaller may no longer reflect the value of current stock, equipment or premises. Businesses operating from more than one site should also check whether cover applies across all locations where stock or equipment is stored or used.
Leadership strain
The research was accompanied by commentary from CAPE People Development, a consultancy that works with founders and small business leaders. Its co-founders and directors said risk often remains concentrated in the hands of owners even as companies grow more complex.
“In our work with small business owners, we consistently see that they are incredibly capable and committed. But those strengths can disguise the build-up of pressure. It becomes one more decision, one more approval and one more thing that only they can sign off.
“When you’re deeply invested, financially, emotionally and reputationally, it’s easy to blur the line between ‘I care about this’ and ‘I must personally hold this’. As businesses grow, complexity and risk increase, yet many continue holding the same level of personal responsibility, only now the exposure is greater,” said Naomi Regan, Co-Founder and Director at CAPE People Development.
Lynsey Kitching, Co-Founder and Director at CAPE People Development, said owners often delay reviewing governance and risk because immediate work takes priority.
“The mistake many small business owners make is waiting for things to ‘calm down’ before reviewing governance, cover or strategic risk. In reality, things rarely calm down. Urgent work will always feel more compelling than important work.
“Risk isn’t reduced when it’s held in one person’s hands, it’s reduced when responsibility sits in the right place and is clearly owned. If responsibility isn’t clearly named, it will drift back to the small business owner.
“Build a regular rhythm into the calendar and treat it as non-negotiable. If it isn’t protected properly, it will be squeezed out. We often use the ‘glass jar’ model to illustrate this. If you fill your time with ‘sand’ (the reactive, day-to-day demands), there isn’t enough room for the ‘rocks’ (the strategic priorities, risk reviews and governance tasks). They need space allocated before reactive tasks fill the day. Protecting your energy is part of protecting your business,” Kitching said.
Jayden, 13 launched Jay’s Bakes from his home in Taunton Road in Bicester on Saturday, June 20.
His late nan, a keen baker herself, was the inspiration behind his passion, as well as time spent helping his uncle with his catering business.
Over the last 18 months he has honed his skills by preparing sweat treats every day after school.
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Determined to turn his hobby into something more, Jayden spent two and a half months researching requirements, gaining his Level 2 food hygiene certificate and officially registering his business, mostly without adult intervention.
After four days of preparation, the business officially launched.
Customers were treated to a wide selection of homemade goods, including M&M cookies, Kinder brownies, Biscoff cookies, Victoria sponge trays, lemon drizzle cups and viral ‘dot cakes’.
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His Kinder brownies proved particularly popular, and by the end of the day he had sold out of everything, taking £210.
Despite feeling “excited and a bit nervous” beforehand, Jayden said the opening was a success, with a strong turnout and positive feedback shared on social media.
His favourite moment came when he officially opened the shed by cutting the ribbon.
Supported by his mum, stepdad, grandparents and uncle, Jayden first began selling from a table in May before building and painting his now-signature blue cake shed.
He now plans to continue baking and selling regularly, bringing his creations to the local community.
Lidl has been given planning permission to build its ninth supermarket in Oxfordshire, despite concerns over flooding.
Aldi opened in Didcot in 2015 and has a supermarket at the Jubilee Way roundabout but shoppers in the town have had to wait over a decade for Lidl to follow.
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South Oxfordshire District Council has now backed plans by the German retailer for a new supermarket in Abingdon Road.
Former Didcot mayor Mocky Khan said: “This give the residents of Didcot more choice, especially when you consider the cost of living environment we have at the moment.
“The town is growing with more new homes being built, and with more growth it’s good to have a wide variety of supermarkets to fit all budgets,”
The plans for the new supermarket were first submitted in 2024.
Didcot Town Council previously objected to the scheme, on the grounds of a lack of flood risk mitigation measures, along with the county council who said there was “insufficient information”.
The town council noted there are “several flooding incidents in the area, especially when the Marsh Bridge water pumps fail”.
But in a report by planning officers granting permission to the supermarket, those issues have now been addressed by Lidl.
The officers said the proposals “largely accord” with the policies around planning, and more can be done to “break up” the car park with greenery.
Planning officers chose to let Lidl build the new supermarket subject to conditions.
They said in a report: “Balanced against this policy conflict is the fact that this is a previously developed site, which is currently in a dilapidated state.
“The proposals represent a significant improvement on the current underutilisation of the site and on its appearance.
“The National Planning Policy Framework and Local Plan set out significant support for the reuse of previously developed land.
“As stated in the applicant’s planning statement, there have been previous enquiries as to the redevelopment of the site that have not come to fruition.
“Given this, finding a viable use for the site is a clear benefit which I consider to be of substantial benefit.”
Thirty-four residents had objected to Lidl’s plans, highlighting concerns over extra traffic, there being no need for another supermarket in the town and there being more appropriate locations to build in their view.
Didcot already has an Aldi store just off Broadway and a Sainsbury’s, M&S Foodhall and Asda.
The nearest Lidl to the proposed site are in Lupton Road, Wallingford, and Marcham Road in Abingdon.
Three people wrote in to support the new Lidl, recognising the benefits of a discount food store and the further jobs it will create.
Lidl has said its proposals for a Didcot supermarket would deliver 40 full-time equivalent jobs as well as further employment during the construction phase.
No opening date was given by the retailer, while the developer is currently on site progressing with the enabling works.
A spokesman said: “We’ve seen demand for our affordable, high-quality products continue to rise in Oxfordshire, and we are committed to serving more communities in the area.
“Our new store will create around 40 new jobs and build on our continued growth.
“We’re excited to be a step closer to opening this store and thank everyone who has supported us on our journey so far.”
It also said the £12m investment would work with the 6,300 new homes allocated to be built, as per the local plan.
Dalcour Maclaren, a specialist in utilities and infrastructure, announced the news on June 22, following a detailed assessment of its operations, including governance, employee wellbeing, environmental impact, and social responsibility.
James Neil, CEO of Dalcour Maclaren, said: “This is a fantastic achievement for Dalcour Maclaren.
“B Corp status gives us the official badge that recognises everything that matters most to us in our culture, our values, and how we make decisions for our people and our clients. We thrive on doing things differently at DM and B Corp absolutely endorses this.”
The certification means the company meets rigorous standards of social and environmental performance, transparency, and accountability.
Dalcour Maclaren now joins more than 10,000 B Corps worldwide and over 2,600 in the UK, including well-known names such as The Guardian, Innocent Drinks, Patagonia, and The Big Issue.
Chris Turner, CEO of B Lab UK, said: “Welcoming Dalcour Maclaren to the B Corp community is hugely exciting. Its commitment to doing business differently will be an inspiration to others and will help spread the notion that success in business is as much about people and planet as it is profit.”
Dalcour Maclaren operates across the UK and Ireland, supporting major projects in energy, water, transport, and digital infrastructure. The company’s services include land, planning, environment, stakeholder engagement, and geospatial services.
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