LOCAL small firms have been urged to ensure they are covered against cyber crime which could not only damage their bottom line but also their reputation.

UNA, an organisation in which Bradford-based insurance broker T L Dallas has a stake, issued the warning as new research revealed that only 13 per cent of UK businesses have cyber insurance cover, compared with 40 per cent in the United States.

According to PWC, 60 per cent of UK businesses had a cyber-security breach in 2014 and 45 per cent suffered infection from viruses or malicious software in , four per cent more than 2013.

Under the Data Protection Act businesses are responsible for the handling of information relating to individuals and UNA said failing to handle this information correctly can lead to claims against a business.

Tim Ryan, UNA executive chairman, said: “This is a pitfall for so many businesses, particularly the smaller ones. A separate cyber policy will ensure that cyber risks are fully catered for and most importantly, will ensure less of an impact on the bottom line of a business.

“The key for Yorkshire businesses is to recognise the role insurers can play in driving improvements in cyber-security risk management. Companies should now be assessing their vulnerability to cyber attacks and taking advantage of risk management and insurance solutions to mitigate the potential for these events to harm their business.”

UNA Alliance Ltd is equally owned by 12 of the UK’s largest regional independent insurance brokers.