The study also revealed that 90% of small businesses don't have a cyber crime insurance policy.
While four in ten SME's are worried about their computer systems being hacked only one in four are confident about their security measures against attacks.
"Cyber crime is costing the UK economy around £11bn a year and while the media is reporting a growing number of high profile data breaches, some small businesses may also be a popular target for hackers because the systems are usually easier to get into and the breach may not be found out for a good few weeks," said SME insurance expert Alan Thomas.
The research shows that cybercrime is one of the leading concerns among SME's who are more afraid of security related attacks
(75%) than physical theft being stolen from the office (31%).
"We know that cyber crime insurance policies might be the last thing on an entrepreneurs' mind when they are trying to drive their business forward on a day to day basis, but it is worrying that over one in ten (13%) of these businesses don't know what security measures they have in place and if they are protected from online crime", says Thomas. "It is increasingly important for small companies to evaluate all the risks their businesses face, both online and offline, and include their IT security and protection requirements in the overall contingency strategy."
Hiscox has given the following security tips to protect your business from online risk.
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