Despite 81% of large UK firms having experienced a security breach in the last 12 months, only 2% have insurance cover that could help them recover from a serious cyberattack, according to a UK government report.

As BBC News reports, the government report seeks to highlight the threat of online attacks, to big businesses in particular, in the hope it will prompt more UK firms to buy insurance to help them temper the impact of an attack.

Insurance not only helps companies financially, but also gives guidance on how to cope with an attack and understand the risks they face, it said.

The risks are not to be underestimated, says Cabinet Office Minister Francis Maude. He stressed: “The cyber threat remains one of the most significant - and growing - risks facing UK business.”

What is it costing firms?

The threat was underlined in a separate security survey, released in 2014, which found that that, on average, large firms hit with the most serious security breach incurred costs in the region of £600,000 to £1.15 million. For small firms, costs to clean up and remedy range from £65,000 to £115,000.

The new government report suggests that in small firms, insurance was almost unknown; a finding Maude says shows that, despite the UK having improved its knowledge of cybersecurity in recent years, there is plenty of work to be done.

He encouraged businesses to put their cybersecurity practices in front of insurance companies, who can help highlight where firms are weakest and empower them with a knowledge of the most serious threats.