Zurich Insurance has rolled out a new industry specific endoresements to its cyber insurance policies to provide coverage for manufacturers.
additional coverage was created due to the increased cyberthreat these
companies are now under and the fact that many manufacturers, particularly
mid-sized firms, are unaware and possibly less
prepared to deal with, the risks posed by cyberattacks, Zurich said.
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.
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 cyberattack, the impact can be significant and long
lasting,” said Michelle Chia, head of professional liability and cyber for
Zurich North America.
number of cyberattacks, specifically ransomware, that have hit the public and
private sector this year have greatly increased the role cyber insurance now
plays in dealing with these incidents. A number of municipalities and school
districts have cited the fact that this coverage enabled them pay
an attacker’s ransom and get their systems back online.
paying a ransom is still frowned upon by law enforcement and many cybersecurity
executives, as it may not result in files being decrypted and encourages future