80% Of Organisations Don’t Have Cyber-Insurance: Report
New research published says that the vast majority of organisations operating in the online environment do not have a cyber-related insurance policy that could ultimately prove invaluable if the organisation were to be compromised.
The poll was conducted by Gallagher who polled 1000 businesses in the UK of various sizes and operations. Of those organisations, despite the fact that just under 40% cited cyber-attacks as one of their biggest concerns while operating, 82% said that they did not have a cyber insurance policy in place.
Just under half of the respondents - 46% - from small to medium-sized organisations said that cyber attacks were “mainly an issue for bigger organisations”, despite the opposite being true. Research from Symantec’s latest report shows that 58% of reported cyber breaches they studied were targetting small-to-medium-sized organisations due to their lack of security policies and ease of access for a cyber-criminal.
According to reports, Gallagher said that “many firms may be buying catch-all policies which may not pay-out in the event of a serious security breach, while others either underestimate cyber-threats or have too much confidence in their ability to defend against attacks.”
Statistics from Beaming showed that the number of attacks aimed at single businesses jumped 152% in a single year, totaling 576,575 attacks in the UK alone.
Head of cyber matters at Gallagher, Tom Draper said that “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.”
“It is evident from our research,” Draper continued to explain, “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.”
Sonia Blizzard, managing director at Beaming issued a statement saying that “most business leaders, particularly at the smaller end of the spectrum, still don’t recognize the threat or incorrectly assume that their broadband router and antivirus systems will be sufficient to keep them safe.”