Are you in search of cyber insurance for manufacturers & wholesalers?
Are you a manufacturer or wholesaler and seeing big premium increases on your cyber insurance premiums?
Are you getting non-renewal notices on your cyber insurance?
Not sure what to do when it comes to cyber?
Manufacturers and wholesale distributors are going to see some trouble with their cyber insurance in 2022 and in this video and post, I’m going to explain it.
So, you’re a manufacturer or a wholesale distributor and you’ve got a problem with your cyber insurance.
It could be a pending non-renewal a big premium increase coming your way, or increased security demands.
What do you do about cyber insurance for manufacturers & wholesalers?
First, let’s take a step back.
If you don’t have cyber insurance for manufacturers & wholesalers yet, I’m not sure what you’re waiting for?
I don’t want to sound rude but the manufacturing and wholesale sectors are coming under full-blown assault from hackers, and to not have insurance to protect you and your company from cyber attacks of all types is crazy.
Why are hackers focusing their attention on manufacturers and wholesalers?
Because the heavy industry sectors tend to not invest heavily in network security they are easy prey for hackers.
The most predominant threat is ransomware – where attackers seize control of your network, encrypt your data and lock you out of your own network, once the ransom is paid, the attackers provide you the keys to unlock your data.
The average ransom demand went from $450,000 in 2020 to $1.2 million in 2021 according to one of our insurers – Coalition.
On top of that, the cost of a ransom is the cost of downtime, lost productivity, the potential damage to your hardware and software, potential damage to your reputation, and more.
The bottom line is that attacks on manufacturers and wholesalers have more than doubled over the past year, and the cost of those attacks has risen sharply.
This is causing many insurers to rethink how they insurer manufacturing and wholesale accounts.
What we’re seeing is that larger accounts, those over $50 million in annual revenue are being non-renewed by some insurers, and clients are finding it difficult to get replacement coverage.
Firms under the $50 million mark will see big premium increases and increased scrutiny on their network security controls.
What’s the solution for cyber insurance for manufacturers & wholesalers?
Well before your cyber insurance renewal, you should be speaking to your managed service provider, or outsourced IT professionals, about your security posture.
What are you doing to manage the threat from attackers?
Often this will mean allocating more dollars to your IT budget on hardware, software, and training.
Training of all employees including remote employees on phishing scams, threats, and challenges.
Senior management should be making cyber security one of their top priorities for 2022.
In my opinion, digital security should be a company priority on par with growth and sales.
Next, you should engage your insurance broker about your cyber insurance for manufacturers & wholesalers renewal at least three months in advance of its expiration to talk about what to expect and communicate your strategy to fortify your network.
This may include arranging a call with your cyber insurance underwriter to give them a comfort level with your security posture and proactive strategy.
Third, if you haven’t engaged a digital security firm to test your network for potential gaps in your security, I would recommend doing so.
This is a proactive step to making sure you’ve made your network as bulletproof as possible. Moreover, this is something that should be done more than once a year, depending on the size of your organization.
If you need the name of a firm that performs ethical hacking let me know.
Here’s the bottom line
Manufacturers and wholesale distributors are going to find their 2022 cyber insurance renewals challenging.
You should be working with an insurance broker who has expertise in cyber and not a generalist.
Start the renewal process early and take control of it. Make sure your security posture is up to snuff.
Engage your insurers in dialogue to demonstrate your commitment to digital security and training. And, in my opinion, get options for higher limits of coverage.
If you’ve been purchasing $1,000,000 limits in the past, you may be way under-protected. Ask your broker to benchmark your company to your peers and find out what buying trends are happening.
In short, get in front of this problem, before it’s a big problem.
Need help? Want to speak to me about your situation? Give me a call or drop me an email and let’s chat. As a matter of fact, click the button below to get started.
Let’s talk and see if we’re a good fit for your business.
No heavy-duty sales pressure, just some conversation to see if we might be a good fit for your business and can solve your problem.
Thanks!
