More than half of companies wrongly assume their insurance covers cyber attacks, according to a report by MoneySuperMarket.

While phishing scams and cybercrime are on the rise, research by the consumer group shows that attempted intrusions now occur every two and a half minutes on average – potentially causing huge financial impacts, loss of customers and damage to reputation.

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Many business owners, ranging from small-to-medium-sized firms and larger companies, wrongly assume their standard business insurance policy will cover them for cyber-related crimes. However, this is often not the case and insurance for cyber crimes must be taken out on a separate policy, the consumer group insisted.

Over the past year, nearly half (40%) of companies surveyed by MoneySuperMarket admitted they had fallen victim to a cybersecurity breach, with the main culprits often being malicious ex-employees, cybercriminals or even current employees.

Although many are premeditated attempts to steal data, a significant portion of breaches are due to mistakes by current employees who open phishing emails or lose work devices.

Read more: SME Cybersecurity: Teaching an Old Dog New Tricks

According to data compiled by the consumer group, 75% of attacks are related to fraudulent emails, while just 27% of businesses are covered by a formal cybersecurity policy as part of their insurance.

Rose Howarth, insurance expert at MoneySuperMarket, commented: “With cybercrime threats on the rise, it’s crucial to make sure your business has the correct cover. Most organisations simply take out a policy for common risks such as water leaks, accidental damage and theft.

“Yet, cyber breaches are increasingly common, with over 57,000 happening in the last three months alone, according to government data.

“Always remember to double-check your policy for cybercrime cover, as standard business insurance often doesn’t include it and you must ensure you take out cyber insurance as a separate policy.”