Cyber Insurance for Modern Ceramic Manufacturing Systems: A Practical UK Guide

Introduction: why ceramic manufacturing is now a cyber target

Modern ceramic manufacturing is no longer “just” kilns, presses and skilled operators. It’s connected production lines, automated batching, robotics, quality control cameras, and data-driven scheduling. Many sites run a mix of legacy industrial control systems (ICS) and newer Industrial Internet of Things (IIoT) devices, all tied into Manufacturing Execution Systems (MES), ERP, remote maintenance, and cloud analytics.

That connectivity is great for output and quality, but it also creates cyber exposure. A single ransomware incident can stop production, spoil batches, damage equipment, delay deliveries, and trigger contractual penalties. Cyber insurance is designed to help you respond fast and recover financially, but only if it matches how your plant actually runs.

This guide explains the cyber risks specific to modern ceramic manufacturing systems, what a strong cyber policy should include, and the practical steps that can reduce incidents and improve insurability.

What counts as a “modern ceramic manufacturing system”?

Ceramic manufacturers vary widely (tiles, sanitaryware, technical ceramics, refractories, tableware), but many now share common digital components:

• ICS/OT environments controlling kilns, dryers, mixers, presses, conveyors, glazing lines and packaging
• SCADA/HMI interfaces for monitoring and control
• PLCs and industrial networks (often with older firmware)
• MES/ERP integration for scheduling, traceability, and inventory
• IIoT sensors for temperature, humidity, vibration, energy use and predictive maintenance
• Quality systems (vision inspection, lab systems, calibration records)
• Remote access for OEMs and maintenance partners
• Cloud services for reporting, analytics, backups, and collaboration

Cyber insurance needs to reflect both IT risk (email, finance systems, HR data) and OT risk (production control, safety, and physical damage).

Key cyber risks in ceramic manufacturing (IT + OT)

1) Ransomware that stops production

Ransomware is still the most common “big loss” event. For ceramic manufacturers, the pain is often less about stolen data and more about downtime:

• MES/ERP outage prevents scheduling, dispatch and traceability
• HMI/SCADA disruption forces a shutdown or manual operation
• Loss of recipes, setpoints or batch records creates quality and compliance issues
• Recovery can take weeks if backups are incomplete or not segregated

2) OT/ICS compromise and unsafe conditions

Ceramic production involves high temperatures, gas systems, moving machinery, dust, and sometimes hazardous materials. Cyber incidents can:

• Alter kiln temperature profiles, causing product failure or kiln damage
• Disable alarms or monitoring
• Disrupt ventilation or dust control systems
• Cause unexpected stops/starts that increase safety risk

Even if attackers don’t “aim” for physical damage, poor segmentation between IT and OT can let an IT incident spill into the plant.

3) Supplier and service provider incidents

Ceramic manufacturers rely on:

• OEMs for kiln/press control systems
• Maintenance contractors with remote access
• Logistics partners
• Software vendors for ERP/MES and lab systems

A breach at a supplier can lead to compromised credentials, malicious updates, or service outages that hit your operations.

4) Business email compromise (BEC) and invoice fraud

Manufacturing businesses are frequent targets for payment diversion scams:

• Fake supplier bank detail changes
• Impersonation of directors or procurement
• Fraudulent purchase orders

This is where cyber insurance can help, but only if the policy includes the right social engineering and funds transfer fraud extensions.

5) Data loss and regulatory exposure

Ceramic manufacturing may hold:

• Employee and contractor data
• Customer contracts and pricing
• Product specifications and IP (especially technical ceramics)
• Traceability data and quality records

If personal data is involved, UK GDPR and ICO expectations become relevant. Even where the incident is “operational”, the response still needs legal and communications support.

6) Cloud and SaaS dependency

Many manufacturers use Microsoft 365, cloud backups, hosted ERP, and supplier portals. Common issues include:

• Account takeover via phishing
• Misconfigured access controls n- Data sync and backup gaps (assuming SaaS is “fully backed up”)

Cyber insurance can cover incident response and certain losses, but you still need robust identity and backup strategy.

What cyber insurance typically covers (and what to check)

Cyber policies vary a lot. The wording matters. For ceramic manufacturing, focus on these areas.

1) Incident response costs (first-party)

A strong policy can cover:

• 24/7 breach response hotline
• Digital forensics and incident response (DFIR)
• Legal advice (privacy, contracts, notification)
• Notification costs (where required)
• Credit monitoring (more common in consumer-facing breaches)
• PR and crisis communications

For manufacturers, the DFIR team’s speed and OT experience can be as important as the limit.

2) Business interruption (BI) and extra expense

This is often the main financial exposure:

• Loss of gross profit due to downtime
• Increased costs to keep operating (overtime, temporary equipment, alternative production)
• Costs to expedite shipping or source emergency materials

Key checks:

• Waiting period (e.g., 8, 12, 24 hours) before BI starts paying
• Whether BI includes partial outages (degraded operations)
• Whether BI covers OT downtime (not just “computer systems”)
• How “income” is defined for your business model

3) Data and system restoration

Look for cover for:

• Rebuilding servers and endpoints
• Restoring data from backups
• Recreating corrupted configurations
• Reinstalling software and licences

In OT environments, restoration may include specialised engineering time and validation testing.

4) Cyber extortion

Cyber extortion cover can include:

• Ransom negotiation support
• Payment (where legal and permitted)
• Costs to secure cryptocurrency and manage the process

Important: insurers will expect you to have backups and a response plan. Payment is never “automatic”, and sanctions rules apply.

5) Liability to others (third-party)

If an incident affects customers or partners, you may face:

• Claims for failure to deliver
• Allegations of negligence
• Contractual disputes

Check whether the policy includes:

• Network security and privacy liability
• Media liability (website content, IP issues)
• Regulatory investigation costs

6) Social engineering and payment fraud

Many cyber claims in manufacturing are payment-related. Ask specifically about:

• Social engineering fraud (invoice manipulation)
• Funds transfer fraud
• Telephone fraud
• Coverage sublimits and required verification procedures

7) Dependent business interruption (DBI)

If your hosted ERP, cloud provider, or key IT service provider goes down, DBI may respond.

For ceramic manufacturers using hosted MES/ERP or cloud analytics, DBI can be crucial.

Common exclusions and gaps that catch manufacturers out

Cyber insurance is not a “catch-all”. Common issues include:

• Unpatched systems / unsupported software: some policies have strict conditions
• Failure to maintain minimum security: if you declared MFA, backups, segmentation, etc., insurers may scrutinise this after a claim
• Known events: incidents that started before inception
• War / state-backed attack exclusions: wording varies and can be complex
• Bodily injury / property damage: many cyber policies exclude physical damage (critical for OT-heavy sites)
• Contractual penalties: some policies limit cover for liquidated damages

Because ceramics is a physical process, ask whether you need:

• A cyber policy with OT/ICS extensions, and/or
• A property/business interruption policy that addresses cyber-triggered physical damage (sometimes via endorsements)

How insurers underwrite ceramic manufacturing cyber risk

Underwriters will usually ask about both IT and OT controls. Expect questions such as:

• Do you have MFA on email, VPN, remote access, and admin accounts?
• Are backups offline/immutable and tested?
• Is the OT network segmented from IT (firewalls, VLANs, controlled pathways)?
• Do you have an incident response plan and tabletop exercises?
• Are endpoints protected with EDR and central monitoring?
• How is remote vendor access controlled (time-limited, monitored, unique accounts)?
• Do you have a patching process for IT and a risk-based approach for OT?
• Are critical systems documented (asset inventory, data flows)?

If you can answer these clearly, you typically get better terms and fewer exclusions.

Practical risk controls that reduce incidents (and can reduce premiums)

Here are controls that matter in real plants, without turning this into an IT project that never ends.

1) Separate IT and OT properly

• Put OT devices on dedicated networks
• Use firewalls between IT and OT with strict rules
• Avoid “flat networks” where a phishing email can reach a kiln controller

2) Lock down remote access

• Require MFA for VPN and remote desktop
• Use jump servers and log all sessions
• Remove shared vendor accounts
• Disable access when not needed

3) Backups that survive ransomware

• Use immutable/offline backups
• Test restores (not just “backup success”)
• Keep copies of key OT configurations and recipes

4) Email security and payment controls

• Strong anti-phishing controls and user training
• Dual approval for bank detail changes
• Call-back verification using known numbers

5) Asset inventory and “crown jewels” mapping

Know what systems you cannot run without:

• MES/ERP
• kiln controllers and HMI
• lab/quality systems
• dispatch and order processing

This helps you design recovery priorities and justify BI limits.

6) Incident response plan that includes OT

Your plan should cover:

• Who can shut down production safely
• How to isolate OT networks
• How to contact OEMs and integrators
• How to communicate with customers and suppliers

Insurers like to see tabletop exercises at least annually.

Choosing limits and structuring your policy

A simple way to think about cyber limits is:

1. What does one day of downtime cost you? (gross profit + extra expense)
2. How long could a serious incident stop you? (a week? two weeks?)
3. What’s the worst-case knock-on effect? (lost contracts, penalties, expedited shipping)

Then add realistic incident response costs. For a mid-sized manufacturer, DFIR + legal + restoration can quickly reach six figures.

Also consider:

• Separate sublimits for social engineering (often lower)
• DBI limits if you rely on hosted systems
• Whether you need cover for OT-related restoration and specialist engineering

Claims readiness: how to make cyber insurance actually work when you need it

Cyber insurance is most valuable when you can trigger the response quickly and provide clean information.

• Keep your insurer’s breach hotline details accessible (not only on a locked computer)
• Maintain an up-to-date contact list for IT, OT, leadership, and key suppliers
• Keep evidence: logs, timelines, screenshots, ransom notes
• Don’t wipe systems before forensics advice
• Document decisions, especially around shutdowns and payments

FAQs: cyber insurance for ceramic manufacturers

Does cyber insurance cover ransomware?

Often yes, including response costs and business interruption, but the exact cover depends on the wording, waiting period, and security conditions.

Will it cover production downtime if the plant is affected?

It can, but you must confirm the policy’s definition of “computer system” includes OT/ICS and that business interruption applies to your manufacturing operations.

Does cyber insurance cover physical damage to kilns or machinery?

Many cyber policies exclude property damage. Some insurers offer extensions, or you may need to address this through your property programme. This is a key discussion point for ceramic manufacturing.

Is invoice fraud covered?

Sometimes, but usually with a specific extension and sublimit. Insurers may require call-back verification and dual approval processes.

What’s the biggest reason cyber claims get disputed?

Misalignment between what was declared in underwriting (MFA, backups, segmentation) and what was actually in place at the time of loss. Keep your security controls accurate and documented.

Next steps: get a policy that matches your plant

Cyber insurance for ceramic manufacturing should be built around your real operational risks: OT downtime, remote access, supplier dependency, and the cost of stopping production.

If you want a quote that fits, be ready to share:

• A high-level network diagram (IT/OT separation)
• Your backup approach and restore testing
• Key systems list (MES, ERP, SCADA, controllers)
• Your incident response plan and contact points

Need help reviewing your current cyber cover or building a manufacturing-focused proposal? Speak to a specialist broker who understands both cyber and industrial operations, and can align the policy wording with your production reality.