Skip to main content

Is your company insured against a cyber attack?

Even though cyberattacks have become increasingly threatening, and the consequences sometimes devastating to businesses, only two per cent of the UK’s large companies are insured in case of an attack, a recent government report has shown.

The report, UK Cyber security: The Role of Insurance in Managing and Mitigating (opens in new tab) (PDF), also states that the number drops down to close to zero for smaller firms.

Large companies lack cover even though 81 per cent of them suffered some sort of a cyberattack in the past 12 months.

The Insurance sector can show companies how to cope better with attacks and understand the risks they face, it said, but states that there is a lot of confusion to what a cyberattack really is.

“At present, within the insurance sector, the cyber threat is not well defined, with confusion surrounding definitions based on different causes and consequences. Insurers tend to conflate cyber with data breach given the well-developed demand for that cover driven by US regulation; however, UK firms have broader concerns about possible damage from cyber risk, including business interruption, damage to property, and theft of intellectual property,” it says.

"The cyber-threat remains one of the most significant - and growing - risks facing UK business," said Cabinet Office Minister Francis Maude in a statement, BBC reports (opens in new tab).

In the report, Mr Maude says that some businesses still feel they do not fully understand cyber risk, which highlights the need for companies to have clear accountability structures for cyber risk and to put in place robust cyber security risk management arrangements.

Businesses can draw on a range of advice and guidance given to help them better understand and defend from cyberattacks.

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.