PIB Insurance Brokers provide insurance solutions for organisations of all shapes and sizes. In this blog they discuss rise of cyber crime and the importance of having the right cyber insurance in place for manufacturing businesses in the woodworking sector.
Why cyber criminals target manufacturers – and what to do about it
Cyber crime continues to rise in terms of frequency, cost and complexity, and according to ITPro, cyber attacks on manufacturing industries rose by 300% in just one year.
Cyber criminals have taken advantage of the shift to remote working, and employees accessing company data through client portals. As an industry, manufacturers are one of the least technologically mature industries, relying on systems and processes that haven’t kept up with modern security measures. This has put the sector as a whole at risk as a target for cyber criminals.
In recent years, the trend appears to be moving from targeting large organisations to small and mid-market businesses, so it is vital that manufacturers recognise the risk to their security and invest in protecting themselves. The top three threats to be aware of are phishing, internal breaches, and ransomware.
If your business was to suffer a ransomware attack, or any other form of cyber attack, are you confident that you would be able to do the following:
- Immediately access specialist legal advice to ensure that your regulatory, reporting and notification obligations are fulfilled?
- Access independent IT specialists to undertake forensic analysis, halt the attack and help you to get back up and running again?
- Recover any losses of income and/or additional costs incurred as a result of the attack, including reputational damage?
- Access legal and monetary resources to deal with any third party liability action relating to the attack?
If the answer to any of the above points is “no”, then now may be the time for you to consider the risk solutions available to you, such as a thorough assessment of the attacks you may face, training your employees to, for example, recognise phishing emails, and ensuring you have the right cyber insurance policy in place.
Why have cyber insurance?
A cyber attack can be costly to your business both financially and to your reputation. However, as a relatively new product, there are some misconceptions which often result in businesses opting not to purchase the valuable protection afforded by a cyber insurance policy.
“We invest heavily in IT security so don’t need to buy cyber insurance cover”
It is impossible to make systems 100% secure. While investing in IT security will make a business less vulnerable to certain types of cyber attack, unfortunately they will still be exposed to the constantly evolving risk of cyber crime. In addition, many cyber claims and incidents are caused by events originally due to human error.
“My company is too small to be a target for cyber criminals ”
Whilst cyber attacks against large companies hit global headlines, cyber criminals also target smaller businesses which are seen as low hanging fruit due to a lack of resources to invest in IT security or provide cyber security training for their staff.
“My existing insurance policy will provide protection in the event of a cyber incident”
Whilst some policies may offer a level of protection, a standalone cyber insurance policy is designed specifically to provide protection for emerging cyber risks that are not catered for by traditional insurance policies together with invaluable support services in the event of a cyber incident.
For more information on how BWF membership can support your business visit: https://www.bwf.org.uk/membership/
For more information on PIB Insurance Brokers visit: https://www.pib-insurance.com/
