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Cyber Insurance, Compliance, and the Myth of “We’re Covered”

Written by Eve Cooper | Dec 22, 2025 5:00:00 AM
“We’re covered” is one of the most dangerous phrases in cybersecurity.
 
Many UK businesses assume:
  • Insurance will pay out
  • Compliance equals protection
  • Audits mean readiness
Unfortunately, reality is harsher.
 

Insurance Is Not a Safety Net

 

Insurers increasingly expect:
 
  • Evidence of ongoing risk management
  • Clear accountability
  • Proof that controls were operational, not just documented
After an incident, claims are often challenged not on whether controls existed but on
 
who was responsible for them.
 
 

Compliance Without Ownership Is Fragile

 

Passing an audit does not mean:
  • Risks are understood
  • Controls are effective
  • Decisions are defensible
Compliance shows alignment at a point in time. Accountability shows governance over time.
 

The Question to Ask

 
Instead of: “Are we compliant?”
 
Ask: “Could we defend our cyber risk decisions under scrutiny?”
 
If the answer is uncertain, coverage and compliance may not protect you when it matters most.