Jaguar Land Rover, the UK’s biggest carmaker, is dealing with a major cyberattack that has forced it to shut down three factories until at least October 1. The disruption is costing the company millions every week, with losses estimated at around £50 million ($68 million). What makes the situation worse is that Jaguar Land Rover didn’t have cyber insurance in place when the attack happened.
The company had been trying to secure a cyber insurance policy through the broker Lockton, but the deal was never finalized. This means Jaguar Land Rover has had to cover the financial fallout on its own. More than 30,000 workers have been told to stay home, and suppliers across the country are already feeling the strain.
Experts say the incident is a harsh reminder of the risks businesses face when they delay or miss out on cyber insurance. With operations relying heavily on digital technology, a shutdown at one company can ripple through the whole industry. The carmaker’s situation is also putting pressure on insurers and brokers, who are carefully watching how this plays out as they enter the busy policy renewal season.
Investigators believe the hacking group behind the attack is Scattered Spider, known for earlier breaches at British retailers. The attackers may have exploited a weakness in SAP software, highlighting the ongoing concern around vendor management and keeping software updated.
The cyberattack’s impact goes beyond just Jaguar Land Rover. Officials from the UK government have promised to support the automaker and its supply chain. “Our top priorities are to help Jaguar Land Rover get back to work quickly and to protect the supply chain’s long-term health,” said industry minister Chris McDonald.
The Unite trade union has warned the shutdown could lead to job losses among the 104,000 people linked to Jaguar Land Rover’s production. S&P Global has also pointed to the broader effect on the UK manufacturing sector in its recent survey.
This incident stands in stark contrast to Marks & Spencer, which recently suffered a similar breach from the same hacking group but is covered by insurance that should pay out over £100 million. While M&S still faces challenges, that payout offers a financial buffer in tough times. Jaguar Land Rover, with no insurance to rely on, faces growing costs and risks.
Jaguar Land Rover said it is working on a phased plan to restart production and is continuing to investigate the attack. For insurers and companies alike, this episode is a powerful reminder of why cyber insurance matters—especially for businesses with big operations and tight supply chains. Going without it leaves companies dangerously exposed in an age where hackers target critical technology more often and with greater skill.