Corporate insurance leaves firms vulnerable to computer crime

Many companies could be leaving themselves open to serious losses incurred through hacking attacks and virus infections because of inadequate insurance protection, according to security firm Wick Hill.

Wick Hill managing director, Ian Kilpatrick, gave this warning in a public statement released today on the back of the recent introduction of an insurance policy from Lloyd's that covers losses suffered through computer crime.

Kilpatrick claims many firms are unaware that they are not covered for high-tech crimes and they do not understand what they're risking.

The Association of British Insurers was not able to say whether insurance policies come with hacking and virus protection as standard. "We don't know what the current status is on this, but it's not necessarily something that is automatically given," said a spokesman.

The common low priority given to computer related security was borne out by the experience of a spokeswoman for top corporate insurer, National Westminster Bank. Barbara Bennett, head of corporate affairs for insurance services, told Silicon.com that business customers rarely demand this sort of cover. "We know of no insurers that actually offer protection against hacking per sé," she said.

"Companies don't automatically think about the need for insurance against hacking and virus attacks - perhaps they should," Bennett added.