Explaining Cybersecurity Insurance Coverage for Manufacturers
With cyberattacks becoming more sophisticated, it’s essential for manufacturers to protect themselves from potential financial losses.
Read on to learn about cybersecurity insurance coverage for manufacturers.
Why Do Manufacturers Need a Cybersecurity Insurance Policy?
Manufacturers everywhere are embracing technology to revolutionize their production lines and streamline processes. However, with the move to online platforms, manufacturing facilities are also becoming prime targets for cybercriminals seeking to exploit their vulnerabilities for financial gain. But with cyber liability insurance, you can ensure that your business recovers in the event of an emergency.
Get Operations Back Online Quickly
With cyber insurance, you can save precious time and money by avoiding prolonged downtime and minimizing the financial impact of a cyberattack. Whether it’s a malicious offensive or a simple system outage, you can gain immediate access to a team of expert forensic and incident response specialists. They will jump into action, working tirelessly to get to the bottom of the incident and get your business back online as quickly as possible.
Recover Lost Funds
Cyber criminals aren’t just after customer data—they also want your hard-earned money. With social engineering on the rise, cyber insurance is becoming an essential safeguard for manufacturers. Whether it’s ransomware or funds transfer fraud, you’ll be able to recover from financially-motivated cyberattacks.
Safeguard Your Supply Chain
Secure your business from supply chain vulnerabilities with cyber insurance! In today’s digital age, the supply chain is essential to every manufacturing process. But what happens if your partners’ systems fail? Cyber insurance is your ultimate shield against business interruptions caused by cyberattacks or system downtime. These policies can provide financial protection if one of your supply chain partners is attacked or experiences a system failure, resulting in financial losses for your business.
Our Southpoint insurance experts do the work for you to make sure you’ll be fully protected during a cyberattack.
Cybersecurity Insurance Requirements
Manufacturing companies must meet certain requirements to qualify for cyber insurance coverage. Adhering to the following requirements will give you peace of mind and guarantee a strong safety net in case of a claim:
Strong Access Controls
Access controls are an important part of a data protection framework, helping to determine which information a user has permission to access and verifying their identity. There are three commonly used frameworks for implementing access controls:
- Discretionary access control (DAC)
- Role-based access control (RBAC)
- Attribute-based access control (ABAC)
By implementing these access controls, you can protect your business and customers from potential cyber threats. Implementing strong access controls for your manufacturing facility helps safeguard your sensitive information and satisfies the requirements set forth by insurers.
Regular Vulnerability Assessments
Data breaches are often caused by authentication vulnerabilities, with weak or stolen credentials being the main culprits. Errors in coding and logic can also create these vulnerabilities, allowing hackers to bypass authentication and gain access to protected systems and user accounts. Once inside, cyber criminals can steal or manipulate critical data, complete fraudulent transactions, and even destroy entire systems. That’s why insurance companies require regular vulnerability assessments to identify and fix system weaknesses that threaten data security. By regularly assessing and remediating system vulnerabilities, you can meet this cybersecurity insurance requirement and take a proactive approach to securing your sensitive data.
Incident Response Plan
Cybersecurity insurance companies also require you to develop a well-defined incident response plan. Your plan should outline the steps to take when a potential incident is detected, such as who to notify and guidelines on how to ensure a streamlined response. By having an incident plan in place, you not only protect your business but also increase your chances of securing cyber liability coverage.
In today’s interconnected world, it’s not just up to your IT department to protect your data and systems from cyber threats. Every single employee plays a vital role in defending against potential attacks. That’s why insurers now require regular cybersecurity training for businesses. By educating your team on best practices and potential risks, you give them the power to become the first line of defense against hackers and digital dangers.
To secure cyber insurance coverage, providers also require manufacturing facilities to implement multi-factor authentication for remote access to their systems to reduce the risk of unauthorized access. It adds an extra layer of security by requiring users to provide two forms of verification before accessing systems or data. The first form is typically a password or pin while the second can be a physical token or device, like a security key, or a biometric marker, such as a fingerprint. By combining these two factors, hackers are virtually unable to gain unauthorized access to your systems and data.
With so much valuable information being stored and transmitted online, it’s no wonder that insurers are pushing businesses to prioritize encryption. This simple yet effective method can ensure that your data remains safe from prying eyes and potential manipulation by transforming your data into a secret code that can only be unlocked with a unique key. That way, even if a hacker manages to get their hands on your data, they won’t be able to make any sense of it without that special key.
Privileged Access Management
Insurers are requiring manufacturing businesses to implement privileged access management solutions. With privilege access management solutions, you can protect your business from data breaches and ensure that only authorized personnel have access to critical resources. Whether you’re a small start-up or a large corporation, safeguarding your data should be a top priority as a manufacturer—especially if you want cyber insurance coverage.
An Experienced Cybersecurity Insurance Company
Protecting your business from cyber threats is more important than ever. At Southpoint, our industry experts are dedicated to understanding your specific needs and identifying the cyber risks that could leave you vulnerable. We’re here to provide you with the tailored coverage you need to safeguard your valuable data. Contact us today to get a quote.