“The cyber-threat remains one of the most significant – and growing – risks facing UK business.” 

About 98% of large UK firms lack insurance that could help them recover from a serious cyber-attack, says a UK government report released this month, this despite 81% having suffered a security breach in the last 12 months.

The report has been designed to encourage businesses to ensuring they have sufficient cyber insurance in place to help them manage the growing number of cyber-threats.

The report also highlights that in SMEs, cyber insurance was almost unknown.

A separate survey from 2014 suggested that the average cost of the most serious security breach large firms face every year is between £600,000 and £1.15m to clean up and remedy (£65,000-£115,000 for smaller businesses).

Cabinet Office Minister Francis Maude said,

“The cyber-threat remains one of the most significant – and growing – risks facing UK business,” said  in a statement.

About half of the chief executives interviewed for the report did not even know it was possible to buy cyber-insurance, found the report.

Mr Maude added that over the last few years, UK industry had improved its understanding of the dangers it faced from cyber-thieves but more still needed to be done. That understanding could be helped, he said, by insurance, because it can help highlight where firms are weakest and pass on information about the most serious threats.

Story by BBC News