Manufacturers and distributors rely on a network of suppliers and partners. A cyberattack on a vendor can disrupt the supply chain, leading to production delays and product shortages.

An increasing reliance on technology is expanding cyber risk for manufacturers and distributors. This industry is experiencing an accelerated change in technologies, including rapid adoption of sensor technology, smart products, and Internet-of-Things (IoT) strategies. Manufacturers and distributors can use specialty technologies, such as industrial control systems (ICS) and operational technology, to drive customer service and business efficiency — and all of these make them a cyber target.

As a result of these and other developments, cyberattacks (and the cost of those attacks) against manufacturers and distributors are rising at a historic rate. Companies should identify and address network vulnerabilities to improve their cost of risk via favorable premiums, terms and policy limits. USI’s Industrial and Manufacturing team advises clients across the risk spectrum with a comprehensive suite of cyber solutions.

Cyberattacks on vendors can cause delays in construction projects by disrupting the supply chain. Ransomware attacks, for example, can encrypt vendor data, making it inaccessible until a ransom is paid.

Bidding on and winning projects requires updated and demonstrable cybersecurity risk management. Construction companies must meet complex technology and security requirements just to qualify for many projects. Additionally, they hold and may be liable for public-private partnership (PPP) data along with other trade and building secrets. USI’s cyber risk transfer solutions address the use of drones, wearables, tracking devices, and other resources designed for today’s construction companies. 

Third-party vendors often have access to sensitive patient data, and if they suffer a breach, it can lead to the exposure of patients’ personal and medical information.

An escalating regulatory environment also impacts cyber coverage and risks for healthcare companies, which are subject to strict compliance obligations like the Health Insurance Portability and Accountability Act (HIPAA). If a vendor fails to comply with these regulations, it can result in legal and financial consequences for the company.

Increasing ransomware attacks, technological complexity due to mergers and acquisitions, and medical device security concerns (IoT devices, specifically) have put pressure on cybersecurity efforts. Since the start of 2023, over 40 million patients nationwide have been affected by 327 data breaches, according to the Office for Civil Rights. A study by IBM reports that the average cyber event now costs over $10 million for U.S.-based healthcare organizations.

Healthcare facilities should work with sophisticated brokers to address the IT improvements sought by underwriters. USI assists in addressing cyber and privacy risks first, creating a “Healthcare Top 10 Cyber Risk Management Review.” We then identify the appropriate cyber insurance to cover the costs of a loss, whether it’s a ransomware event or a business email compromise that requires network and forensic assistance.

For example, when a regional clinician group was a victim of a ransomware attack, USI professionals worked with the client and insurance carrier to resolve the initial ransom demand and remediation cost, which totaled approximately $500,000 in ransom, $100,000 to secure the bitcoin, and $300,000 in forensics and other network expenses. Since the firm had USI’s PrivaSafe cyber coverage, the cost for the incident was paid minus the self-insured retention of $50,000.

Watch our on-demand cybersecurity webinar for healthcare companies, led by our cyber insurance leaders and healthcare industry specialists, on effective risk management and insurance solutions.

If a vendor handling sensitive data — such as tenant information or financial records — suffers a breach, it can expose the real estate company and its clients to data theft and privacy violations. Real estate companies are facing dramatic increases in sensitive data and expanding regulations, as well as the need for technology to address both issues. This creates a need for cyber risk management and insurance solutions. Cybercriminals know this and are ready to exploit vulnerabilities at any point in the real estate supply chain — including titles, tenants, funds transfers, and other essential business operations. Cyber risk management and cyber insurance can provide critical protection against loss and liability arising out of the use of technology in operations, assisting real estate businesses in mitigating their exposures to cyber risk and successfully recovering from cyber incidents.

Transportation companies rely on various vendors for critical components and services. A cyberattack on a vendor’s systems can disrupt the supply chain, leading to delays, increased costs, and operational challenges.

For the transportation industry, cyber and privacy risk management and insurance transfer have traditionally been secondary to addressing “traditional” transport risks that involve property and auto coverage. This means you may be more vulnerable to cyber threats — particularly wearables, trackables, and physical goods lost in business email compromise (BEC) attacks.

To mitigate risks, transportation companies should implement robust cybersecurity measures, such as endpoint detection and response (EDR), air gaps, and immutable backups. Air-gapping prevents hackers from accessing the data on your server remotely, while immutability ensures that no one can edit or delete any of your files after you've uploaded them to the cloud.

A tailored cyber risk management program can help address these specific risks and partner with underwriters to receive favorable coverage. USI works with specialized insurance carriers who are experienced in the transportation industry and tailor coverage to your specific risks.

The University of Massachusetts Chan Medical School recently revealed they are being sued as the result of a data breach. The lawsuit claims the university failed to safeguard the confidential information of 134,000 people who receive public assistance when their personal information was exposed in connection with a cyberattack on the MOVEit file-transfer app. This illustrates the critical need for effective cyber risk management and insurance coverage to protect the sensitive data and unique networks of higher education and public entities.

While robust cybersecurity measures such as firewalls, encryption and regular updates can help prevent breaches, they may not be enough to secure adequate coverage. Today, underwriters are typically requiring IT practices to address specific concerns, such as full endpoint direction and response (EDR) across your network, with 24/7 monitoring. Tailored insurance policies, specific to the cyber and privacy risks of public entities and municipalities, are available via the USI PrivaSafe solution. Cities, towns, universities, hospital districts, tax offices, and counties should seek custom solutions based on the unique needs of their organizations.  

Watch our on-demand cybersecurity webinar for public entities and higher education, led by our cyber insurance leaders and healthcare industry specialists, on effective risk management and insurance solutions.

Third-party vendors may have access to sensitive data such as crop yield information, customer data, or financial records. If these vendors suffer a data breach, the company’s data can be exposed, leading to financial losses and reputational damage. Agriculture companies also rely on a complex supply chain, which includes vendors for equipment, fertilizers and seeds. Cyberattacks on these vendors can disrupt the supply chain, affecting production and distribution.

Modern cybersecurity for agriculture companies involves protecting proprietary data, off-site network access, remote monitoring systems, and IoT-enabled machinery from cyber threats — as a start. Understanding the seasonal nature of threats, installing a regular threat update and patching cadence, and training employees must also be part of any agriculture business today. USI’s PrivaSafe insurance solutions can address potential losses from cyberattacks while seeking to tailor your insurance and risk management programs to the unique needs of your agricultural operations.

Watch our on-demand cybersecurity webinar for agriculture companies, led by our cyber insurance leaders and agriculture industry specialists, on effective risk management and insurance solutions.