Cyber Business Interruption: The Hidden Risk for IT & Tech-Dependent Businesses 

Cyber insurance has become a boardroom issue. High-profile ransomware attacks, data breaches and system outages dominate headlines. Yet, while many companies carry cyber insurance, few consider how a cyber event could halt their business operations. Traditional business interruption (BI) policies rarely cover cyber-related downtime, leaving IT-reliant firms dangerously exposed. 

This blog explores the challenges of cyber business interruption (Cyber BI), why it matters to IT and consultancy firms and how businesses can calculate their real exposure. 

Why Cyber BI Is Different 

Conventional BI cover usually responds to physical damage: like a fire, flood, or storm that interrupts trading. But what if your core systems are encrypted by ransomware? Or if a cloud provider outage prevents staff from working? 

In most policies, there’s no BI cover unless there’s tangible property damage. That’s why Cyber BI is a separate (and essential) extension. 

Common Scenarios 

1. Ransomware lockdown: A professional services firm loses access to client files. Contracts stall for weeks. 
2. Cloud dependency: A renewable energy company can’t access real-time monitoring tools because its provider suffers a global outage. 
3. Data breach fallout: An IT consultancy halts operations to deal with regulators, client claims and PR management. 

All of these lead to financial loss, yet may fall outside traditional BI. 

Why Now? 

• Spike in ransomware: Attacks increased globally by 37% in 2024. 

• Remote working: Distributed teams increase reliance on cloud platforms. 

• Regulatory scrutiny: Data breaches now trigger fines and reputational harm. 

Calculating Exposure 

Businesses should ask: What’s our cost per hour/day of downtime? 

• Consultancy firms: lost billable hours + reputational damage. 

• Manufacturers: halted production lines, even if only IT-driven logistics are affected. 

• Renewable firms: missed generation targets, contractual penalties. 

Solutions 

• Standalone cyber insurance with BI extension. 

• Extended indemnity periods: 12 months may not suffice for regulatory recovery. 

• Forensic & PR costs: Cover should include crisis communications. 

Cyber BI is no longer optional. Any IT-dependent business from consultants to manufacturers using smart systems, needs to address the gap. Unsure whether your BI policy covers cyber risks? Speak with Sustain Insurance Brokers for a tailored review and protection plan.