The SME sector is exposed to cyber crime risks. Since Spring 2015, SMEs have been overlooking the clear and present danger of cyber risks with virtually no change in insurance.
CBR has revealed SME cyber crime landscape using new research from Aon Risk Solutions which states that 22 per cent of SMEs in UK have no insurance in place at all.
According to the research, only 4 per cent of UK SMEs used to have their insurance cover to protect them from the wraths of cyber attacks and 5 per cent used to have cover for crisis management situations, however, there has been no change since Spring 2015.
IT and Telecom sectors are at the most vulnerable risk of cyber crime with only 5 per cent of SMEs having policies to insure them against cyber attacks. Finance and Accounting sector follows where only 8 per cent of businesses had policies protecting them against cyber attacks.
It has been highlighted that the gap between the smaller and larger businesses has widened this quarter despite the fact that 78 per cent of UK businesses have a variety of insurances in place to protect their business.
Further highlighting that SMEs are becoming more insurance aware, 33 per cent have insurance policies covering them against damage to property, including problems such as natural disasters and arson, an increase of 5 per cent on the 28 per cent in Q2 2015.