A report by the UK government has claimed that the vast majority of major UK firms do not have adequate cyber insurance in place, to protect themselves in the event of a serious cyber attack.
An astonishing 98 per cent of these firms are lacking insurance, and they are therefore stressing the importance of purchasing insurance cover, especially after a staggering 81 per cent of them were victims of cyber attacks in the last year alone. For smaller firms, virtually all of them had not taken out insurance.
They will benefit not only from extra protection, but also a clear, strategic plan for how to deal with and respond to any attacks. The insurance would work to identify where the risks are, and categorise the seriousness of any weaknesses that each company has, in order to maximise a company’s protection.
Another report into cyber security, conducted in 2014, valued the costs for major firms who suffered a serious cyber attack to be between £1.15 million and £600,000. For smaller firms , their costs were thought to be between £115,000 and £65,000. These are the costs the companies face to rectify the problems caused by an attack.
Francis Maude, the Cabinet Office Minister, said: “The cyber threat remains one of the most significant – and growing – risks facing UK business. Insurers can help guide and incentivise significant improvements in cyber security practice across industry by asking the right questions of their customers on how they handle cyber-threats.”
