– by William Mitchell
A Single Cyber Attack Can Destroy Your Business
As technology becomes increasingly relied upon by companies, the risk of a cyber-attacks continues to grow. The benefits of technology and artificial intelligence are great, but no matter what industry adopts it, you are always at risk of a potential cyber-attack and the negative impacts that come with it.
Risks to a company are unpredictable and you never know how big or small the impact may be on your company’s finances and revenue. The safest possible option is to always prepare for the worst possible outcome, as there is evidence of cyber-attacks leaving companies bankrupt, so far as they never recover.
At Romero Insurance we outline the four key sectors which are at a high risk of cyber-attack. We list specific examples of security breaches and cyber crime, and note the severity of the impact of a cyber-attack.
4 Key Sectors and How They Are Affected By A Cyber-Attack
Cyber-Attacks on the Manufacturing Industry
Manufacturers are prone to cyber-attacks. There are many different business interruption problems which can arise from a cyber-attack on a manufacturer. Direct cyber-attack impacts can include financial losses, security breaches, breakdowns in production, reputational damage, and more. Ransomware attacks can cause major business disruption, locking employees out of machinery which operates using online programmes.
An example of a manufacturing company who faced a cyber-attack was in 2019, when Norwegian aluminium manufacturers Norsk Hydro experienced a devastating ransomware attack. The attack forced them to shut down many plants and place them offline with processes in over 40 countries, this caused a huge loss of $70 million, however, if they decided to pay the ransom, costs could have been higher.
Read more about the biggest manufacturing industry cyber attacks here.
Cyber-Attacks on the Engineering Sector
Similarly, there are many negative impacts that can affect engineering firms if they are victims of a cyber-attack. Impacts could include financial losses, shutdown of production, reputational damage, data breaches, and more. Engineering firms possess banks of data which are sought after by cyber criminals, as well as expensive equipment which operates online.
An example of an engineering company who was the recipient of a cyber-attack in 2025 was British firm, IMI. While they refused to share knowledge of the data that was accessed during the attack, the companies’ shares fell 3% and data was possibly breached.
Read more here about IMI being hit with a cyber-attack.
Cyber-Attacks on the Construction Industry
There are many ways that busiensses within the construction sector can be harmfully impacted by cyber-attacks. Construction firms often manage confidential projects, so are at risk of industrial sabotage, leaked sensitive information, and significant ransomware attacks. Construction projects involve large financial transactions and so are targeted by cyber criminals, with multiple third parties offering potential entry points for attacks. Cyber-attacks impacts include financial loss, loss of reputation, data breaches, safety risks, and more.
An example of a construction firm who fell victim to a phishing attack was British firm, Interserve. This attack ending up costing them over £11 million, £4.4 million in fines and £7 million on professional advisor fees. They were fined £4.4 million due to their poor security which in turn allowed hackers to steal up to 113,000 current and former employees personal data.
Read more about the cyber attack upon Interserve here.
Cyber-Attacks on Retail and Distribution Businesses
Some of the most prevalent major cyber attacks that have affected both consumers and employers are attacks on retail. M&S, Co-op and Adidas have been victim to high-profile breaches, with very costly implications for each retailer. Retailers host a large amount of customer data, and are highly vulnerable to ransomware attacks due to their long supply chains. Cyber-attacks to retailers and distributors will result in the negative impacts of reputational damage, disruption to operations, financial losses, theft of data, and more.
One of the biggest companies to experience a cyber-attack is Target when they fell victim to a malware attack in December 2013. The attack was extremely damaging and resulted in 40 million credit and debit records, forcing target to pay an $18.5 million settlement. However, it is estimated it Is estimated that Target lost over $200 million, not just the original $18.5 million. Alongside this, customers were now also vigilant and the number of household shopping at Target fell drastically causing their earnings to drop by 46% following the attack.
Read more about the historical Target Data Breach here.
How Romero Insurance Can Protect You From a Cyber Attack
Romero Insurance has over 20 years of experience protecting large corporate and commercial businesses. Cyber is the most common risk facing our clients with over 20% of all UK businesses falling victim to at least one cyber crime (according to Government statistics). It’s important for employers to anticipate where a cyber attack is most likely to happen, and how to defend against one. Also, if a cyber attack does happen, it’s critical businesses have a procedure in place, alongside effective insurance, inorder to minimise disruption and financial loss.
At Romero Insurance, we recommend comprehensive cyber insurance to all of our clients. Our cyber insurance policy is bespoke and tailored to the needs and capabilities of each client. Read more about cyber insurance here, and talk to us to enquire about a confidential review of your insurance policy.
