Millions of UK Businesses lack a Cyber Insurance Policy

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According to a survey conducted by Insurance firm Gallagher, millions of businesses operating in the UK lack basic cyber insurance coverage. And this indicates that business heads are either unaware of what repercussions could a cyberattack covey to them or how a cyber insurance policy could help them bailout from the consequences of a cyber-attack.

 

Key findings in the survey highlight the fact that only one in every 5 companies operating in the UK have a standalone cyber insurance policy. As most of them think that a business insurance cover is enough to cover the costs incurred in a cyber attack- which is completely false.

 

It is believed that more than 46% of small and medium-sized businesses think that hackers only target bigger organizations and so never bother to buy a cyber insurance cover for the IT Infrastructure.

 

Gallagher’s study also indicates that over 35% of CIOs and CTOs believe that their business is well protected if they invest in the right technology.

 

What’s interesting in this whole misconception is the fact that 72% of respondents still feel that cyber risks and data breaches can shut down their business on a permanent note. However, due to a lack of funds, they do not take insurance coverage on a serious note.

 

Thomas Draper, the cyber practice leader, and technology officer of Gallagher said that cybercrime has emerged as the biggest threat to businesses across the world. However, most companies are still failing to take proper measures which in-turn affects their financial position and reputation of the company.

 

Note- Banks fail to provide credit to those companies which have fallen prey to cyber-attacks. Also, victimized companies can see a negative impact on their merger and acquisition activities.

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Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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