Specialist insurer Beazley and Marsh, an insurance brokerage and risk management solutions provider, have launched Manufacturer's First Response cyber insurance coverages.
Manufacturer's First Response addresses the following cybersecurity and operational risks faced by manufacturers:
- Supply chain interruptions that occur due to cyberattacks against insured manufacturers or their suppliers.
- Invoice manipulation that causes a manufacturer's payments to be misdirected.
- Technology disruption that affects a manufacturer's operational and industrial controls, hardware and/or software.
- E-crime losses related to payment or delivery of money or securities as a result of fraud.
Marsh now offers Manufacturer's First Response to U.S. manufacturers. In addition, Marsh provides Beazley Breach Response (BBR) risk management services to help manufacturers respond to security breaches and comply with data security mandates.
Do Manufacturers Need Cyber Insurance?
Cyber insurance is quickly becoming a must-have for manufacturers. In fact, cyber insurance can help manufacturers address a variety of cyber threats, including:
- Business Interruptions: Safeguards manufacturers against business interruptions related to cyberattacks that shut down operating systems.
- Cyber Extortion: Protects manufacturers against cyber extortion, i.e. cyberattacks in which hackers control a business' websites or networks and demand payment to restore a company's operating systems.
- Data Breaches: Limits the risk of revenue loss, brand reputation damage and other problems related to a manufacturer's data breach.
The manufacturing industry is one of several business sectors that could drive the demand for cyber insurance in the years to come. Meanwhile, MSSPs can partner with manufacturers and offer cyber insurance tips and recommendations to help these businesses secure their sensitive data.
How to Choose the Right Cyber Insurance Coverages
The Federal Financial Institutions Examination Council (FFIEC) recently offered the following tips to help manufacturers and other businesses select the right cyber insurance coverages:
- Collaborate with multiple departments. Get legal, enterprise risk management and other key stakeholders involved in the decision-making process.
- Resolve coverage gaps. Review an existing or proposed cyber policy and address coverage gaps.
- Assess your cyber coverages annually. Examine the costs and benefits of cyber coverages annually; if necessary, update cyber coverages to keep pace with evolving cyber threats.
Furthermore, businesses must identify, measure, mitigate and monitor their cyber risk exposure, FFIEC stated. That way, these companies can craft cybersecurity and IT risk management strategies to address cyber risks.
