UK: Govt approves loan for JLR after cyber attack

Jaguar Land Rover halts UK production after major cyber-attack. Government loan guarantee supports recovery; losses could exceed £3.5bn. Does your cyber insurance cover your company for such attacks?

The key points: Jaguar Land Rover ceased UK production following a major cyber-attack in late August, with operations halted until at least October 1st across facilities in Solihull, Halewood and Wolverhampton. The attack affects 30,000 direct employees plus 100,000 supply chain workers and 60,000 others dependent on their spending. Critically, JLR lacked cyber-attack insurance coverage, exposing the company to full cost impact.

The UK government approved a loan guarantee worth up to £1.5 billion to cover attack costs, repayable over five years to support cash reserves and supplier payments. Professor David Bailey estimates potential revenue losses exceeding £3.5 billion if production delays extend until November, with gross profit losses around £1.3 billion.

Why this matters: The JLR attack demonstrates the devastating impact cyber-attacks can have on manufacturing operations and supply chains. The absence of cyber insurance coverage highlights a critical gap in corporate risk management as cyber threats escalate across Europe. Government intervention illustrates the systemic economic risks posed by major cyber-attacks on key industrial employers.

What might happen next: Similar cyber-attacks targeting European industrial facilities are likely to continue, potentially affecting other major manufacturers. Insurance markets may respond by expanding cyber coverage options while increasing premiums for high-risk industrial sectors. Governments may develop more systematic support mechanisms for companies facing cyber-attack recovery costs.

What you should be doing: Immediately review your company's cyber-attack insurance coverage and assess whether current policies adequately cover production losses and supply chain disruption.