Is Your Manufacturing Operation Secured?
As the number of cyber-attacks continue to increase, have you considered whether your manufacturing and distribution operation is protected? Industry Today’s article “5 Type of Cyber Liabilities for Manufacturers” discusses five threats to your manufacturing and distribution operation’s cyber security, and discusses what you can do to protect the company from liability.
These cyber-attacks can range from something simpler, like a data breach, other type of attacks including extortion (ransomware), third-party transmission of viruses, and theft of intellectual property. Most of these instances are often disruptive of business, adding to the overall cost. Ultimately, manufacturing and distribution firms do need to be responsible for sure-ing up their information technology in order to avoid these attacks. Also important is informing employees about recognizing social engineering, which are attacks that come through email and can trigger viruses.
The author, Tony Chimino, notes an instance of a business owner working remotely, and therefore outside the company’s firewall, who inadvertently opened an email containing a ransomware virus. The virus caused serious delays in the company’s manufacturing and distribution output. Who covers this loss? Hint: it’s not your general liability policy, as insurance companies have begun excluding this from coverage in their policy documents. Separate cyber liability insurance should be purchased.
In setting up your cyber insurance, Chimino recommends paying attention to what is, and isn’t, covered, and provides a list of insurance buying do’s and don’ts, from basic tips like buying the coverage you need to more complex coverage definitions like understanding retroactive coverage. Even if you’re a small manufacturing and distribution company, don’t hesitate to follow this article’s advice, as the likelihood of a cyber-attack doesn’t decrease with the size of your firm.
To read the full article from Industry Today, click here.