Why care providers need cyber insurance in 2026

Cyber attacks are now one of the leading causes of business interruption in the UK care sector. Care homes, domiciliary care services and supported living providers hold large volumes of sensitive personal and medical data, making them an increasingly attractive target for cyber criminals.

In 2026, the key question for care providers is no longer whether a cyber incident could happen, but whether their organisation is prepared to respond effectively when it does.

Why are care providers targeted by cyber criminals?

Care providers rely heavily on digital systems to deliver safe and efficient care. Care planning software, electronic medication records, rostering platforms and cloud-based HR systems are now central to daily operations.

Cyber criminals target care organisations because:

• The data held is highly valuable
• Systems are accessed by multiple users across different locations
• Smaller providers often have weaker cyber controls
• Care delivery cannot simply stop during an incident

Many attacks begin with phishing emails or compromised passwords. Increasingly, cyber criminals use AI-driven scams that impersonate suppliers, managers or even regulators. A single mistake can lead to locked systems, stolen data or operational shutdown.

What happens if your systems go down?

For care providers, a cyber incident is not just an IT problem. It can directly affect care delivery and regulatory compliance.

The consequences may include:

• Loss of access to care records and medication systems
• Disruption to staff rotas and payroll
• Data breaches involving sensitive personal information
• Investigations by the Information Commissioner’s Office (ICO)
• Increased scrutiny from the Care Quality Commission (CQC)
• Safeguarding concerns and reputational damage

In severe cases, providers may be unable to operate for days while systems are restored.

What does cyber insurance cover for care providers?

Cyber insurance is designed to support organisations before, during and after a cyber incident. It focuses on both financial protection and operational recovery.

A comprehensive cyber insurance policy may include:

• 24/7 access to cyber incident response teams
• Forensic IT specialists to investigate and contain the attack
• Legal and regulatory support for GDPR and data breach reporting
• Data recovery and system restoration
• Business interruption cover following system downtime
• Cyber extortion and ransomware response support (where legally permitted)
• Public relations support to manage reputational impact
• Protection against certain fraud and social engineering losses

For care providers, this expert support can be as valuable as the financial cover itself.

Is cyber insurance only for large care organisations?

A common misconception is that cyber insurance is only necessary for large providers. In reality, small and medium-sized care organisations are often targeted more frequently because they typically have fewer internal IT resources and less formal cyber training.

Another assumption is that standard business insurance includes cyber cover. In most cases, cyber risks are excluded unless a dedicated cyber insurance policy is in place. Without specialist cover, the financial and regulatory burden of a cyber incident usually falls entirely on the care provider.

What do insurers expect from care providers in 2026?

Insurers now place greater emphasis on cyber risk management when offering cover. Care providers are commonly asked about:

• Staff cyber awareness and phishing training
• Multi-factor authentication and password controls
• Secure remote access to care systems
• Regular data backups and offline storage
• Incident response and business continuity planning
• Software updates and security patching

These measures are designed to reduce risk rather than restrict access to insurance. Strong cyber hygiene can also lead to improved policy terms and wider cover options.

Is cyber insurance really essential for care providers?

The real question is no longer whether a cyber incident could happen, but whether the organisation could respond quickly and effectively if it did.

Cyber insurance can be the difference between short-term disruption and long-term damage. For care providers, protecting data also means protecting residents, staff and professional reputation.

Is your cyber insurance fit for 2026?

Cyber risks continue to evolve, and many policies arranged only a few years ago may no longer reflect today’s threats or regulatory expectations.

A specialist cyber insurance review can help you understand:

• Whether your policy would respond to a real cyber incident
• What support you would receive in the critical first hours
• How your risk management compares with insurer expectations

Protecting data means protecting residents, staff and your organisation’s reputation.

Speak to a specialist adviser to review your cyber insurance today.