Claud Bilbao, regional vice-president of underwriting and distribution at Cowbell UK, explains the niche insurance support that can benefit the UK’s tech sector
The UK’s technology sector is a true success story. Valued at a landmark £902bn this year, it ranks as the third largest technology ecosystem globally, as well as leading Europe in terms of market valuation and attracting investment.
From artificial intelligence (AI) startups to cloud service providers and fintech innovators, the UK tech sector is a unicorn production powerhouse – and its SME community is also thriving.
When the UK government last counted, back in October 2024, there were 5.5 million SMEs across the country. About 170,000 of these were classed as tech SMEs.
But while the sector is booming, it is also facing an escalating challenge – cyber threats. For example, hostile activity within the UK’s cyberspace surged by 16% in 2024 compared with the previous year.
This is an upward trend we see continuing this year and a sharp reminder that operational and cyber resilience are no longer ‘nice to haves’ for technology businesses – these traits are critical to both individual businesses’ and the entire sector’s survival.
Recognising this – and the fact that fast-growing tech companies operate in a high pressure, high stakes environment – Cowbell has introduced Prime One Tech in the UK this year. Designed specifically for the modern UK tech sector, the product combines professional indemnity (PI) and cyber coverage and is available for tech companies with up to £1bn in annual turnover, providing limits of up to £5m.
With tech firms often outgrowing the limitations of traditional PI cover, Cowbell UK’s new offering reflects a much-needed shift in how insurance is aligning with the realities of modern tech risk.
Beyond conventional cover
From software failures and intellectual property disputes to ransomware incidents and media liability, technology companies require protection that reflects both the operational complexity and cyber exposures they currently face.
Backed by partnerships with A+ rated (re)insurers and enhanced by Cowbell’s proprietary risk assessment and mitigation platform, Prime One Tech goes beyond conventional coverage.
It offers protection for professional indemnity, cyber crime, loss of data or documents, breach of contract, intellectual property infringement, subcontractor risk, cyber liability, media liability, mitigation costs and even unpaid invoices.
But, crucially, the policy removes some of the common friction points found in traditional policies. For example, there are no restrictions linked to business descriptions, which can provide greater flexibility.
This type of flexibility allows tech firms to grow and innovate without the constant fear of falling between policy gaps.
Alongside risk transfer, it is important that insurance providers can empower businesses to actively manage and reduce their risk. With this in mind, Prime One Tech policyholders gain access to Cowbell’s patented platform, which includes:
- Cowbell Factors: Enabling competitive pricing and optimised premiums for businesses with stronger risk profiles, Cowbell’s proprietary tool assesses an organisation’s cyber risk across eight categories, based on data from more than 47 million businesses.
- Cowbell Insights: Provides real-time recommendations to help policyholders address cyber security weaknesses and improve risk ratings, while also sending alerts about emerging cyber threats and offering guidance on protective measures.
- Cyber security training: Includes phishing simulations and awareness courses at no extra cost for the first 12 months after policy inception.
Only by pairing strong risk management practices with smart, adaptive insurance propositions can the UK’s tech sector continue to thrive in the face of rising threats.
