Ransomware & Extortion
Attackers may encrypt systems, steal information, threaten disclosure or interrupt access to essential technology.
Manufacturing Cyber Insurance & Technology Risk
Protect Production From Digital Disruption and Financial Crime
Address ransomware, system outages, connected machinery, data exposure, vendor failures and fraudulent transfers across the operation.
Cyber Risk in Manufacturing
A Cyber Event Can Become a Production Event in Minutes
Manufacturers depend on connected systems for scheduling, inventory, quality control, machinery, shipping, communication and payment. An attack or outage can interrupt the physical operation even when little personal data is involved.
The insurance program should reflect both sides of the event: the technical response to compromised systems and the financial consequences of lost production, delayed orders, theft and liability.
Manufacturing Cyber Exposure
Where Digital Risk Reaches the Operation
Production Interruption
Unavailable ERP, scheduling, inventory or control systems can stop work and delay customer commitments.
Connected Machinery
Industrial control systems, sensors and remote-access tools can connect a digital failure to physical processes.
Funds-Transfer Fraud
Compromised email, altered payment instructions and impersonation can redirect customer or vendor payments.
Data & Intellectual Property
Employee records, customer information, drawings, formulas and proprietary processes may require protection and response.
Vendor & Supply-Chain Failure
A technology provider, cloud platform or critical supplier can create downtime without an attack on the manufacturer itself.
Operational Technology
The Risk Is Not Limited to Laptops and Email
Connected machinery and industrial control systems may influence production speed, tolerances, temperatures, pressure, material handling and safety functions. Remote access that helps a vendor troubleshoot equipment can also introduce another pathway into the operation.
Review Connected-System RiskManufacturing Cyber Insurance
Coverage Should Follow the Full Cost of an Incident
Incident Response
Specified forensic, legal, notification, public-relations and other response services following a covered event.
Data & System Restoration
Eligible costs to restore or recreate data, software and systems after covered damage or corruption.
Cyber Extortion
Covered response expenses and payments associated with qualifying threats, subject to policy terms and legal requirements.
Business Interruption
Qualifying lost income and extra expense arising from a covered security or system failure after the applicable waiting period.
Dependent-System Interruption
Certain losses resulting from a covered outage at a qualifying technology provider or dependent business.
Privacy & Network Liability
Covered allegations involving privacy violations, data exposure, malware transmission or failure of network security.
Regulatory Response
Specified defense expenses, investigations, fines or penalties where insurable and permitted by law.
Cybercrime
Certain computer-fraud, funds-transfer, social-engineering or telecommunications losses when specifically included.
Cyber and Crime Coverage
Fraud Can Fall Between Policies If Nobody Compares Them
A fraudulent wire request may begin with a compromised email account but result in the voluntary transfer of company funds. Cyber and crime policies can define computer fraud, funds-transfer fraud, social engineering and employee dishonesty differently.
Review:
- Which policy is intended to respond
- Social-engineering sublimits
- Verification requirements
- Voluntary-transfer exclusions
- Employee and vendor impersonation
- Client and escrowed funds
Vendor and Supply-Chain Technology
Your Systems Can Be Working While the Business Is Still Offline
Cloud platforms, managed service providers, outsourced software, payment processors and critical suppliers can all affect the manufacturer’s ability to operate. A vendor outage or compromise may create business interruption without damage to the manufacturer’s own network.
Contracts, backup procedures and dependent-system coverage should be evaluated together, including the vendors and suppliers whose failure would have the greatest financial effect.
Incident Response Planning
The First Call Should Not Be a Search for the Policy
A practical response plan identifies who can isolate systems, stop production, engage legal and forensic resources, contact the insurance carrier and communicate with employees, customers and vendors.
Review Cyber ReadinessPrepare before an incident
- Assign response authority and backups
- Document carrier and breach-hotline contacts
- Test offline and immutable backups
- Plan for manual production and shipping
- Control vendor and remote access
- Practice payment-verification procedures
Cyber Underwriting
Security Controls Influence Coverage, Capacity and Cost
Insurers commonly evaluate access controls, backups, endpoint protection, network segmentation, employee training, vendor access and incident-response planning. Accurate applications matter because the answers become part of the underwriting record.
Be ready to explain
- Multifactor authentication
- Backup frequency and testing
- Endpoint detection and response
- Privileged-access management
- Email and payment controls
- Operational-technology segmentation
Common Questions
Manufacturing Cyber Insurance FAQs
What does cyber insurance cover for a manufacturing company?
Depending on policy terms, cyber insurance may address incident response, data restoration, cyber extortion, business interruption, privacy and network-security liability, regulatory proceedings and certain cybercrime losses. Coverage varies significantly by policy and event.
Can cyber insurance cover lost income when production systems go down?
Cyber business interruption coverage may address qualifying lost income and extra expense after a covered security failure or system failure. Waiting periods, restoration periods, dependent-system coverage and the method used to calculate the loss should be reviewed carefully.
Does cyber insurance cover funds-transfer fraud and social engineering?
Some cyber and crime policies offer coverage for specified social-engineering, computer-fraud or funds-transfer events, but definitions, verification requirements, sublimits and exclusions differ. The cyber and crime policies should be evaluated together.
Why are connected manufacturing systems a cyber risk?
Connected machinery, industrial control systems and operational technology can create a pathway from a digital event to production downtime, damaged work in process, safety concerns and delayed customer orders.
Protect the Systems Behind Production
See How Your Insurance Program Responds When Technology Stops—or Money Disappears
We’ll help connect operational dependencies, security controls and coverage across cyber and crime policies.