Cyber Scheme provider, CFC, has luanched an extension to protect SMEs when firms in their supply chain suffer a cyber-attack. Since the unprecedented number of high profile cyber-attacks in 2025 and particularly the issues face by numerous small businesses whose trading was severely impacted by an attack on a leading car manufacturer we have been in close contact with BIBA Cyber Scheme Provider, CFC, to close this ‘protection-gap’.
We are delighted now, to see CFC launch a new extension to its flagship Cyber Proactive Response cover for SMEs.
What is covered
Customer business interruption responds to contingent business interruption (BI) events, delivering much needed protection for SMEs facing financial loss as a result of a major customer cancelling orders for a period of time as a result of a cyber-attack.
“The cyber-attack suffered by Jaguar Land Rover demonstrated acute vulnerability in the supply chain because of dependence on one major customer whose business has effectively been shut down by cyber criminals,” said CFC’s Head of Global Cyber Underwriting, Scott Bailey. “Whilst unable to operate its own business as normal during the attack and recovery period, JLR was forced to cancel orders with its hundreds of suppliers, decimating the short-term fortunes of many of its small business providers.”
“Over the past 25 years, cyber insurers have a demonstrable track record of covering policyholders whose businesses have been directly hit by a cyber-attack or caught up in the fallout of an attack impacting their suppliers. However, we haven’t fully addressed the exposure faced by small businesses of a customer falling victim to a cyber-attack and impacting the supply chain like this – until now. Our groundbreaking customer business interruption extension fills that protection gap.”
Available to BIBA members via the Cyber Scheme, the customer business interruption cover for SMEs provides a much need solution for brokers to offer to any small business that receives a material proportion of revenue from a single customer.
While ideal for the manufacturing and wholesale/distribution industry sectors with clear supply chain risks, CFC’s customer business interruption cover is available to all industry sectors and across all geographic areas.
“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,” added Bailey. “We’re incredibly proud to have stepped up and delivered a solution to this real world need. At CFC, we passionately believe that cyber insurers must respond rapidly to evolving risks. Given the significant number of SMEs still without cyber protection and the ever increasing threat posed by cyber criminals, our sector of the insurance industry has a vital role to play in helping build economic resilience and protect livelihoods.”
Scheme provider
CFC has served as BIBA’s dedicated cyber insurance scheme provider since 2004 and is proud to partner with BIBA in delivering the customer business interruption endorsement to its members across the UK.
“We are seriously concerned that small and medium sized firms face a real risk of a drop off in demand if companies at the top of their supply chain suffer a cyber-attack,” said Graeme Trudgil, BIBA CEO. “We warmly welcome this innovative new insurance approach by long-term BIBA scheme provider, CFC, to provide a customer business interruption extension to a cyber policy, which is potentially a game-changer for suppliers who rely on key customers. This is a new and helpful insurance solution for insurance brokers to provide to their clients.”
BIBA members can access the Cyber Scheme here
