Manufacturers today face a wide range of cyber and operational risks that can cause significant economic loss even if the best systems, controls, personnel, and procedures are in place. Current insurance offerings, however, have not kept pace with the changing cyber risk landscape for manufacturers, and the unique nature of those risks.
To address this gap, Beazley and Marsh have created Manufacturer's First Response, a Marsh and Beazley Breach Response (BBR) initiative, that offers the following coverages tailored specifically to address cyber and operational risks faced by manufacturers:
- Supply chain interruption from cyber-attacks against the insured or its suppliers
- Invoice manipulation resulting in payments being misdirected or fraudulently directed
- Technology disruption affecting operational and industrial controls, hardware and/or software
- E-crime losses from payment or delivery of money or securities as a result of fraud.
The coverage is available through Marsh to US manufacturers of all sizes. Manufacturers will also benefit from risk management services provided by BBR Services and available via www.beazleybreachsolutions.com. BBR Services helps clients to respond to an actual or suspected cyber breach effectively and in compliance with the law. BBR Services is the only in-house breach response services team at an insurer and has helped thousands of clients successfully manage cyber breaches.
Kristen Dauphinais, head of US middle market cyber & tech at Beazley, said: "Manufacturers' risk management requirements are changing as they keep pace with the digital world, with many transforming into tech companies. Hacking and malware were the top cause of loss for manufacturers reported to Beazley in 2018 and, as the Internet of Things and more complex supply chains have increased connectivity, they have also expanded the scope for far-reaching cyber-attacks.
"These specialist coverages will help manufacturers to more effectively manage potential threats before they take hold, robustly protect their businesses and minimize disruption caused by a cyber event."
Thomas Reagan, US cyber practice leader at Marsh said: "Manufacturing is among the fastest growing segments purchasing cyber insurance today with a growing number of manufacturers acknowledging that cyber risk is an operational risk that needs to be managed."
David Carlson, US manufacturing & automotive industry practice leader at Marsh, said: "With the launch of Manufacturer's First Response, Marsh is responding to its manufacturing clients' requests for tailored, next generation cyber coverage to help them manage today's fast-evolving cyber risk landscape."