Cyber insurance policy endorsements for manufacturers target a growing, strategic threat facing U.S. industrial firms of all sizes
Chicago, IL (Nov. 7, 2019) – Zurich Insurance has announced the rollout of new, industry-specific endorsements to its cyber insurance policy designed to expand coverages provided to the manufacturing industry. The endorsements were created in response to the growing threats posed to U.S. industrial firms by data breaches, ransomware and other cyber events.
Prompting Zurich’s move is the fact that many manufacturers, especially midsized firms, have been largely unaware of the growing cyber risks they face as new digital technologies connect with and replace legacy systems, presenting new vulnerabilities that can be exploited by cyber criminals. A cyber hack, malware, miscode or virus can severely impact a production line, supply chain and company reputation.
Cyber exposures covered by Zurich’s manufacturing- specific endorsements include:
- Any components that are part of supervisory control and data acquisition systems (SCADA), programmable logic controllers (PLC) or other industrial control systems;
- Computer hardware, firmware, software and electronic data, as well as associated input and output devices utilized in manufacturers’ operational technology strategy;
- Computer peripheral devices, including wireless and mobile devices, which comprise a growing segment of manufacturers’ overall connected environment;
- Electronic backup facilities, including systems accessible through the internet, intranets, extranets or virtual private networks, which manufacturers use as part of their cyber security defense protocol.
“Historically, manufacturers have presented lower profiles to cyber criminals because they did not have large databases of personal information to be accessed and stolen,” said Michelle Chia, head of Professional Liability and Cyber for Zurich North America. “Today, as manufacturers become more dependent on network connections linking industrial control systems with production machinery, robotics and other vital hardware, they are becoming more attractive targets. If a plant is shut down for any length of time due to a cyber attack, the impact can be significant and long lasting.”
Chia noted that most midsized companies, including manufacturers, don’t have the same cyber defense infrastructure and expertise as large organizations. In today’s rapidly evolving, increasingly threatening cyber risk environment, this can lead to a greater vulnerability for midsized manufacturers. To help address those vulnerabilities, Zurich offers a variety of cyber security services to all midsized customers, from initial vulnerability assessments to network monitoring. Services can be packaged with a Zurich Cyber Insurance policy or can be purchased outside an insurance contract.
Zurich will discuss the new manufacturing endorsements today in Chicago during its Cyber Risks in Manufacturing event held at Manufacturing X Digital (MxD). Formerly known as the Digital Manufacturing Institute, MxD’s unique “Future Factory” lab incorporates examples of cutting-edge manufacturing technologies. The group focuses on developing solutions for the manufacturing challenges of tomorrow, including cyber security. The Zurich event is bringing together representatives from manufacturing firms around the country to hear a panel of cross-functional experts discuss cyber-related manufacturing risks and potential solutions.
“Buyers of cyber insurance are becoming more sophisticated than ever before,” said Paul Horgan, head of U.S. Commercial Insurance for Zurich North America. “As manufacturing customers have become more aware of cyber threats, they’ve asked us for industry-specific coverages, and we heard them. Earlier this year Zurich created cyber insurance endorsements specific to the construction industry. We will continue to look at ways we can help customers deal effectively with evolving cyber risks.”
- Read Zurich’s recent blog post about midsized manufacturers and cyber;
- Find more information about Zurich’s cyber security solutions.
Zurich North America is one of the largest providers of insurance solutions and services to businesses and individuals. Our customers represent industries ranging from agriculture to construction and include more than 90 percent of the Fortune 500. We’ve backed the building of some of the most recognizable structures in North America — from the Hoover Dam to Madison Square Garden to the Confederation Bridge. Our North American, LEED Platinum® headquarters is located in the Chicago area. We employ approximately 9,000 people in North America and have offices throughout the U.S. and Canada. Further information is available at www.zurichna.com.
Zurich North America is part of Zurich Insurance Group, a leading multi-line insurer that serves its customers in global and local markets. With approximately 54,000 employees, Zurich provides a wide range of property and casualty, and life insurance products and services in more than 210 countries and territories. Zurich’s customers include individuals, small businesses, and mid-sized and large companies, as well as multinational corporations. The Group is headquartered in Zurich, Switzerland, where it was founded in 1872. The holding company, Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information is available at www.zurich.com.
SOURCE: Zurich North AmericaTags: Cyber Insurance, United States (USA), Zurich