Manufacturers’ cyber policy developed by Arthur J Gallagher

The rising risk of cyber attacks, coupled with increased vulnerability and largely excluded exposures, represents a perfect storm for the manufacturing trade, according to Arthur J Gallagher. The broker has responded by designing and developing a bespoke policy that it believes more effectively transfers the sector’s unique cyber risks.

Backed by A-rated Lloyd’s capacity and led by Brit Insurance, Gallagher has developed a custom wording in conjunction with manufacturing trade bodies and global Fortune 500 companies. It said the manufacturers’ cyber policy cover closely matches the emerging exposures faced by such companies.

The policy indemnifies against property damage and bodily injury exposures resulting from a control system interruption, typically excluded from other cyber policies. The policy also offers cover for increased cost of working, contractual penalties and contingent direct supplier interruption due to a cyber attack, also usually excluded from property policies, Gallagher claimed.

Tom Draper, technology & cyber practice leader for Arthur J Gallagher, said: “The connected world has been embraced by manufacturers to deliver significant efficiencies and advances. 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.”