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Cyber Insurance: Not just for consumer-facing businesses

Post originally published by TechAssure-member: Plexus Groupe

The wide range of cyber risk faced by businesses continues to be in the news.

In a story published recently, The Wall Street Journal reported that a growing number of manufacturers have begun to secure cyber insurance.

According to the Journal, manufacturers paid about $37 million in cyber coverage premiums last year, per data from Advisen, an increase of 89 percent from 2015. Also, per BusinessInsurance.com, cyber threats were a top concern of more than 90 percent of the top 100 publically traded manufacturing firms in 2016, according to findings from accounting firm BDO USA LLP.

As the Journal noted, cyber coverage has long been popular with customer-facing firms with reams of personal data such as health-care providers, banks and retailers. And certainly, these firms will always be under great strain to protect their data, given the risk of breaches.

So why should manufacturers consider cyber coverage?

Because manufacturers are in the data business, too. Consider manufacturing designs and processes, and consider how they are linked, in some form or fashion, to computing.

Now, consider a ransomware attack shutting down a factory’s machinery. Think of the costs — and not just the ransom. Business will be interrupted. Deadlines might be missed.

Cyber insurance helps companies bear the costs of a cyber breach, including notification, monitoring and legal services, as well as business interruption. If your business already has cyber coverage, you are on the right track.

However, has your cyber coverage been reviewed recently? Has it stayed in lockstep with the ever-changing and ever-growing risks of today? And will you have the coverage you need if disruption — or disaster — strikes?

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