Coalition, a cyber insurance company for small and midsize businesses, has launched a full-spectrum coverage to insure manufacturers against security failures and data breaches.
The Coalition policy encompasses the physical, technological, and financial damages – including bodily harm, property damage and pollution – that manufacturers may experience as the result of a cyber incident or technology failure.
According to a recent report from the U.S. Department of Homeland Security, manufacturing is the second-most targeted industry for cyber attacks, based on the number of reported attacks. Manufacturers are prime targets because many are unaware of exposures across their infrastructure and lack the security measures to protect themselves from an attack.
As a result, manufacturers are often choice targets for cyber criminals. According to Verizon’s 2018 Data Breach Investigations Report, 86 percent of cyber attacks against manufacturers are highly targeted in nature, whereas the majority of attacks in other industries are opportunistic. Manufacturing is also unique for its exposure to physical damages that can result from an attack.
According to Joshua Motta, CEO and co-founder of Coalition, there is currently a significant gap in cyber insurance coverage for manufacturing firms who experience property damage, bodily harm, and pollution resulting from a security failure or breach.
“This is a major exposure, especially for these companies that have industrial control systems (ICS) that control physical processes,” he said.
Coalition’s policy for manufacturers addresses this gap while also providing coverage for the losses most frequently experienced resulting from external data breaches, Motta added.
Coalition’s offering provides coverage for manufacturing firms in the following areas:
- Property damage, bodily harm, and pollution resulting from a security failure
- Supply chain interruption from cyber attacks against the insured or their suppliers
- Invoice manipulation that results in payments being misdirected or fraudulently directed
- Technology disruption that affects operational and industrial controls, hardware, and/or software
- Wire fraud losses from payment or delivery of money or securities
- Costs to replace computer systems, including industrial control systems, damaged in a cyber attack
Coalition’s coverage policy for manufacturing companies is available immediately.
Coalition offers insurance and free cybersecurity tools to help businesses manage and mitigate cyber risk. Backed by A+/A rated insurers Swiss Re Corporate Solutions and Argo Group, Coalition provides companies with up to $10 million of cyber and technology insurance coverage in all 50 states and the District of Columbia. Coalition’s cyber risk management platform provides automated security alerts, threat intelligence, expert guidance, and tools to help businesses remain resilient in the face of cyber attacks. Coalition is headquartered in San Francisco.
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