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British companies failing to secure proper cyber-insurance

(Image credit: Image source: Shutterstock/GlebStock)

A significant number of businesses in the UK are risking what’s known as “silent” cyber-exposure to attacks mostly because of their leadership’s sheer ignorance. 

This is according to a new research report by global insurance broker Gallagher, which surveyed 1,000 businesses, finding that almost two-fifths (39 per cent) consider cyberattacks as one of their biggest worries. 

At the same time, however, more than four in five (82 per cent) don’t have insurance which covers the cost and impact of a cyberattack.

Many have bough insurance policies directly from an insurer (43 per cent) without the advice of a broker, and end up wrongly thinking they’re ‘covered’ in case of a cyber-incident.

In many cases (42 per cent), businesses think that by buying technology solutions, they’re protected. Less than four in ten (39) have considered a specialist when buying new tech.

"The issue of cyber-crime is one of the biggest risks facing businesses today,” commented Tom Draper, Head of Cyber at Gallagher.

“Clearly there are practical steps businesses can take to help protect against cyber-attacks, but unfortunately the risk remains significant and many businesses are leaving themselves exposed to financial and reputational damage if they do not consider having specialist insurance in place.”

Businesses are most often affected by phishing, impersonation emails, spyware, malware and ransomware attacks.

“It is evident from our research that many bosses believe they are covered in the event of a cyber-attack, however traditional or off the shelf business insurance policies do not typically provide cover for cyber related issues,” Draper concluded.