Microsoft 365 ships with a genuinely strong security foundation, but the default configuration is built to get a new tenant working quickly, not to be maximally secure for your specific business. Multi-factor authentication may be recommended rather than enforced, conditional access policies that would block sign-ins from unexpected countries or unmanaged devices are often left unconfigured, and Microsoft Defender's threat protection features frequently sit at a lower tier than what your licence actually entitles you to use. A proper Microsoft 365 security setup UK businesses can rely on closes these gaps deliberately, rather than assuming "it's Microsoft, so it must already be secure."
Email remains the most common way attackers get into a UK small business, and Microsoft 365 is usually where that fight actually happens — phishing attempts, business email compromise, and credential theft all target the mailbox first. A properly configured tenant with enforced MFA, conditional access and Defender for Office 365 anti-phishing policies stops the overwhelming majority of these attempts before they reach an inbox. Without that configuration, a single compromised password can be enough for an attacker to access company email, impersonate staff, and pivot into other systems — regardless of how good your antivirus or firewall might otherwise be.
Cyber Essentials certification adds another reason to get this right. Several of the scheme's five controls — access control, secure configuration, and malware protection among them — map directly onto how your Microsoft 365 tenant is set up. A tenant configured properly from the outset makes Cyber Essentials assessment straightforward; one left on default settings often means uncomfortable surprises during the assessment, or a certification attempt that fails on points that could easily have been addressed in advance.
Cyber insurance is another area where this catches businesses out. Insurers increasingly ask specific questions about MFA enforcement, conditional access and endpoint protection at renewal, and vague or inaccurate answers can affect both premiums and whether a claim is honoured after an incident. Being able to answer those questions precisely, because the tenant is actually configured the way you believe it is, is a genuine practical benefit of getting this right rather than assuming it and hoping.