Gallagher Launches Manufacturers’ Cyber Solution to Close Coverage Gaps

Arthur J. Gallagher announced it has responded to the “perfect storm” facing manufacturers – a rising risk of cyber attacks, coupled with increased vulnerability and largely excluded exposures – by designing a tailor-made policy to more effectively transfer their unique cyber risks.

The company said the coverage safeguards against the growing cyber threat to operating systems and supply chains.

Backed by “A”-rated Lloyd’s capacity and led by strategic partner Brit Insurance, Gallagher has developed custom wording in conjunction with manufacturing trade bodies and global Fortune 500 companies to ensure cover most closely matches the emerging exposures faced by manufacturers, Gallagher said in a statement.

The manufacturer-led custom wording ensures the cover matches key exposures, said Arthur J. Gallagher, the brand name for the international broking division of Arthur J. Gallagher & Co. outside of the United States.

Gallagher’s Manufacturers’ Cyber Policy indemnifies against property damage and bodily injury exposures resulting from a control system interruption, which is typically excluded from other cyber policies.

The policy also offers tailor-made cover “for increased cost of working, contractual penalties and contingent direct supplier interruption due to a cyber attack, usually excluded from property policies,” said the company.

“The connected world has been embraced by manufacturers to deliver significant efficiencies and advances,” said Tom Draper, Technology & Cyber Practice leader for Arthur J. Gallagher.

“But with that connectivity comes new threats – such as the convergence of industrial control systems with ‘hackable’ enterprise systems which poses a potentially catastrophic risk. On top of that, manufacturing is now one of the most frequently hacked industries, second only to healthcare – largely due to the volumes of intellectual property held by manufacturers or through corporate espionage,” he added.

Despite this growing threat, exclusions on general liability and property policies for cyber are leaving manufacturers exposed to some of their most prevalent risks, explained Draper. “So we tackled this vulnerability head on, designing a global policy to bridge these gaps while also offering loss mitigation services through independent security consultants to provide end-to-end risk protection.”

Source: Arthur J. Gallagher

Related:

Arthur J. Gallagher’s white paper, “The new era of cyber risk for manufacturers” can be viewed on the company’s website.

Topics Cyber New Markets A.J. Gallagher Manufacturing