IT security failures leading to a loss of data can cost firms millions, but insurers are reluctant to offer cover relating to the issue, it has been claimed.

Computerweekly.com reports that despite the fact that many groups can be damaged by the fallout from a major IT security failure at a firm, it is difficult to obtain insurance to cover the costs.

Speaking to the website, Hemantha Herath explained that a lack of information relating to the risk of using computers is one of the major reasons most companies do not offer IT related insurance.

He said: "With computers, where things move blinding quickly and where nothing is discreet, it [gathering risk data] is difficult to do; especially when there are a lot of network connections and it is all interrelated."

For this reason, the report continues, it is even more vital that firms have IT security measures in place.

Disaster recovery and business continuity systems might also help firms reduce costs after a loss of data.

Yesterday, the website reported the findings of a Cisco study which revealed that almost two-thirds of firms are set to invest more in IT security in the coming year.

A recent survey for Connect found that one in ten companies has lost important data as a result of a backup failure. The company has now developed a unique online backup service - http://www.totalrecall.co.uk – for SMEs to ensure they can survive any disaster.