A mere 18% of UK companies have a standalone cyber insurance policy in place, according to research by major broker Gallagher.
According to a Gallagher poll which involved 1,000 businesses, the vast majority of respondents do not have specialist coverage despite 39% of senior decision-makers citing cyberattacks as among their biggest concerns. The culprit for the underinsurance? The assumption that a standard policy is enough, when in fact it is unlikely to offer cyber protection.
“The issue of cybercrime is one of the biggest risks facing businesses today,” said Gallagher cyber head Tom Draper. “Clearly there are practical steps businesses can take to help protect against cyberattacks, 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 that many bosses believe they are covered in the event of a cyberattack; however, traditional or off-the-shelf business insurance policies do not typically provide cover for cyber-related issues.”
The survey also found that 43% of businesses purchase policies direct from an insurer, meaning they don’t benefit from the expert advice of a broker.
