All businesses, regardless of size, are vulnerable to a cyber-attack. While hackers all have different motives, the primary reason for various groups of hackers is monetary gain. Through this, thousands of cyber breaches occur yearly, many of which do not make any major headlines.
Manufacturers are increasingly exposed to cyber breaches and the impacts as the industry moves towards building interconnected facilities and operations. Over the last 12 months, 39% of manufacturers experienced a breach resulting in losses between $1M-$10M.
3 critical points for Manufacturers to know about Cyber Risk Management and Insurance:
- Your General Liability policy does not typically cover cyber breaches, and if there are sub-limits, they most likely do not provide enough 1st party or 3rd party coverage.
- Business Interruption (BI) due to a cyber breach could impact a manufacturer’s supply chain, production, and order fulfillment. Ensuring you have proper BI limits and possibly contingent BI for your suppliers will help prevent disruption to your cash flow when a breach occurs.
- Motives include financial gain (68%) and Espionage (20%), which makes it a concern for intellectual property and contractors. Over one-third of executives believe that IP theft was the primary motive for cyberattacks experienced by their companies.
In this hard market, ransomware events have increasingly occurred, making cyber security a crucial subject in 2022.
The complexities of cyber insurance make it much more important to work with the right broker who can help you navigate the ins and outs of a cyber policy. Working with the right broker with credibility in this space and familiarity with underwriters and their expectations is critical in ensuring a sound underwriting process.
Contact us today to connect with an expert on our team who can evaluate your needs and help you get the most out of your cyber insurance policy.