Why Manufacturers Need Cyber Liability Insurance in the Digital Age

Manufacturers increasingly rely on interconnected systems and advanced technologies to optimize production, enhance research and development and streamline supply chain management. However, this digital transformation also exposes them to significant cyber risks, making cyber liability insurance a critical consideration.

Benefits of Cyber Liability Insurance

Cyber liability insurance is an essential consideration for the following reasons:

• Rising cyberthreats—Manufacturers can be prime targets for cybercriminals due to their valuable intellectual property (IP) and operational technology systems. Cyberattacks on the manufacturing sector have surged, with ransomware being a predominant threat. These attacks can halt production, leading to substantial financial losses and reputational damage.
• Intellectual property protection—Manufacturers’ IP, including proprietary designs, processes and technologies, can be a lucrative target for cybercriminals. Cyber liability insurance can help protect against the financial repercussions of such theft, helping to ensure that manufacturers can recover and continue their operations.
• Business interruption coverage—A cyberattack can bring manufacturing operations to a standstill, causing significant business interruption. Cyber liability insurance can offer coverage for the financial losses incurred during downtime, helping manufacturers get back online quickly. This can include access to expert forensic and incident response teams that can mitigate the impact of the attack.
• Supply chain security—Manufacturers depend heavily on their supply chains, which can become liabilities if partners’ systems are compromised. Cyber liability insurance can offer business interruption coverage if a supply chain partner suffers a cyberattack or system failure that affects the manufacturer. This can help ensure continuity and minimize financial losses.

Learn More

For cyber liability insurance near you, contact Pitcher Insurance Agency, Inc. today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.