Cyber Risk Management: What Options are Available to Manufacturers?
As your business grows, so does your cyber liability. And here’s the thing: many companies tend to procrastinate when it comes to implementing vital cyber security improvements until it is too late, and they have already been exposed.
Cyber risk certainly isn’t anything to ignore. The state of Arizona takes the security of client and customer data seriously – and can fine companies up to $500,000 for not properly protecting this information. In addition, experiencing a breach of information or malicious cyberattack can bring your business’ operations to a screeching halt, require a long and complex recovery and affect your company’s reputation.
The bottom line is to start investigating your cyber risk management options as soon as possible.
Standard commercial policies are written to insure against physical loss only. This isn’t too helpful when most cyberattacks result in a loss of intellectual property, personal information or interrupts your business – all intangible, but equally valuable. Cyber liability is a rapidly evolving and relatively new insurance niche, and just as companies need to take a personalized approach to protecting their online assets, insurance is best evaluated on a case-by-case basis.
Bringing in an expert can help you navigate your options, outline potential threats and identify gaps that may have been overlooked. They can match you with the appropriate liability policy through exploring your unique risks and challenges, while ensuring you have adequate coverage not only to recover losses, but also to continue operations in the case of a cyberattack.
Cyber Liability Coverage Gives Manufacturing Leaders Peace-of-Mind
Cyber liability insurance can provide monetary support for the expenses caused by the attack. Potentially unavoidable costs could include:
- A loss of data, including private information such as Social Security or credit card information, proprietary data and intellectual property
- Lost income due to a full or partial shutdown of your computer system because of a hacker attack, virus or other insured event
- Money spent due to cyber extortion or ransomware
- Hiring public relations, legal experts and computer forensic specialists to manage investigations and community/media outreach
- Notifying affected parties and providing ongoing identity theft or credit monitoring needs
In addition to fortifying your company against the impacts of a cyberattack, having cyber risk management in place gives business leaders trusted advice from insurance experts on how to improve internal scrutiny and close security gaps. It assures customers their sensitive data will be swiftly protected in case of a breach. Lastly, it gives decision-makers and employees peace-of-mind knowing their enterprise will be covered financially if a breach occurs.
The Manufacturers First Response Adds Another Layer of Protection
Businesses can add another layer of security with the Manufacturer’s First Response, a holistic breach response initiative developed specifically for organizations of all sizes that are seeking cyber and operational coverage beyond what is typically covered under a cyber insurance policy. It provides businesses with a tailored policy to prevent a wide range of cyber risks including:
- Supply chain interruption from attacks against your organization or suppliers
- Invoice manipulation resulting in misdirected payments
- Technology disruption affecting operational and industrial controls, hardware and/or software
- eCrime losses from delivering money or securities as a result of fraud
Manufacturers can prevent a cybercrime crisis through taking the right precautions, well before a threat is actualized. Companies should examine areas where they’re particularly vulnerable, both at the human and software levels – and take a realistic, collaborative approach to defending their most valuable data. For many companies it’s not a case of “if,” but “when,” only increasing the need to devote more resources to organizational cyber-resiliency.
Exploring the best insurance coverage for your enterprise can bring additional security. Speak with a Lovitt & Touché representative to find out more about cyber risk management options.