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CYBER RISK FOR EQUIPMENT MANUFACTURERS — RANSOMWARE, OT DISRUPTION, IP & SUPPLY CHAIN
Why Cyber & OT Exposure Is Now a Manufacturing Balance-Sheet Risk
Industrial equipment manufacturers sit at the intersection of IT, engineering and industrial control. You may design firmware, support customers remotely, run connected production lines, and rely on CAD/CAM files, ERP systems and supplier portals. A cyber incident can stop production, delay deliveries and trigger contractual disputes — even if no personal data is involved.
Modern ransomware incidents rarely stay “in the office”. They can disrupt plant operations by disabling scheduling systems, halting access to drawings, affecting maintenance records, or (in some scenarios) impacting OT environments through remote access pathways or flat networks. Cyber insurance can help fund incident response and (where purchased) cyber business interruption, but underwriting depends on controls.
This guide explains the covers typically used by equipment manufacturers, what underwriters look for, and how Insure24 positions your cyber/OT story to access the right market at the right price.
Cyber Insurance: The Core Sections Manufacturers Use
Cyber policies differ by insurer and wording, but the structure typically combines first-party incident costs with third-party liability protections. The challenge for manufacturers is ensuring the policy fits operational reality: OT, remote support, supplier dependencies and production downtime.
First-Party Costs (Your Own Losses)
- Incident response: forensics, breach coaches/legal, specialist consultants
- Ransomware/extortion: negotiation support and (where covered) extortion payments
- Data & system restoration: rebuilding servers, endpoints and critical applications
- Cyber Business Interruption: loss of income and increased cost of working after a covered event
- Reputational / crisis costs: PR and communications support (where included)
For manufacturing, BI triggers, waiting periods and sub-limits matter. The “right” policy is the one that matches how your production actually stops and restarts.
Third-Party Liability (Claims by Others)
- Network security liability: allegations you failed to prevent an attack impacting others
- Privacy / data liability: where personal data or confidential data is involved
- Regulatory investigations: support/defence costs where offered by wording
- Media / content liability: certain online content allegations (scope varies)
Some manufacturers assume “we don’t hold personal data” means “we don’t need cyber”. In practice, ransomware and downtime are often the bigger drivers.
Operational Technology (OT): Where Manufacturing Risk Becomes Different
OT environments include PLCs, SCADA, HMI, industrial networks, and the systems that control processes and production equipment. Underwriters want clarity on where OT exists, how it connects to IT, and how remote access is managed.
OT Risk Hotspots Underwriters Focus On
- IT/OT segmentation and whether there is a true boundary between networks
- Remote access tools for maintenance, support and vendor connections
- Legacy systems and patching constraints in OT environments
- Privileged access and admin credential management
- Backups and restoration time for production-critical systems
OT underwriting is about resilience and containment. Insurers are pricing the chance that a cyber event becomes a production outage.
Manufacturing Downtime Scenarios (Examples)
- Ransomware disables ERP/scheduling, halting dispatch and materials planning
- Loss of CAD/CAM access delays programming and shop-floor changeovers
- Remote access compromise forces OT isolation and a controlled shutdown
- Email compromise leads to fraudulent supplier payments and urgent cashflow pressure
- Supplier or managed service provider outage disrupts your own operations
A good cyber programme maps your “critical path”: what systems must exist for production to operate, and how quickly you can restore them.
IP, Firmware & Design Data: What You’re Really Protecting
For many equipment manufacturers, the most valuable asset is not the machine — it’s the drawings, software, know-how and design data behind it. Cyber events can create IP loss through theft, extortion, or accidental disclosure. Insurance alone won’t prevent this, but it can fund response and recovery.
Where IP Exposure Shows Up
- CAD/CAM files, source code, firmware repositories and build documentation
- Customer NDA breaches and confidential information claims
- Supplier portals and shared design environments
- Stolen credentials leading to data exfiltration and extortion
- Export contracts requiring specific cyber controls and notification obligations
Contracts increasingly ask for cyber cover, incident response commitments and evidence of controls — especially where you integrate into customer OT environments.
How Insurance Typically Fits With Controls
- MFA on email, VPN and privileged accounts
- Immutable/offline backups and regular restore testing
- Segmentation and least-privilege access (especially IT/OT)
- EDR monitoring and patch governance with OT exceptions documented
- Incident plan including OT shutdown/isolation procedures
Insurers reward clarity. A well-documented control environment often produces better terms, higher limits and fewer restrictive conditions.
We thought “cyber” was just about data. The real risk was production downtime and remote access into our support environment. Insure24 helped us explain our segmentation, backups and OT boundaries — we got cyber BI terms that matched our restoration times.
Operations Director, Industrial Equipment ManufacturerFREQUENTLY ASKED QUESTIONS
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Do equipment manufacturers need cyber insurance if they don’t hold much personal data?
Often yes. Many manufacturing claims are driven by ransomware disruption and restoration costs rather than personal data exposure.
Cyber BI, incident response and extortion support can be central for manufacturers where downtime is expensive.
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What is OT (Operational Technology) and why does it matter to insurers?
OT includes the systems that control industrial processes (PLCs, SCADA, HMIs and industrial networks). Insurers focus on OT because an event can
become a production outage or safety issue. Segmentation, remote access controls and recovery planning are key underwriting factors.
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Can cyber insurance cover loss of income from downtime?
Many policies offer cyber business interruption, but the trigger, waiting period and sub-limits vary. The policy needs to match how your
operations stop and restart, including critical systems and realistic restoration times.
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Does cyber insurance cover IP theft or design file leakage?
Some policies respond to extortion and incident response costs following unauthorised access, but “IP value loss” is not always a standard insuring agreement.
The practical focus is usually response, containment, legal support and restoration; specialist solutions may be considered where IP litigation exposure is high.
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What controls help get better cyber and OT insurance terms?
MFA on email/VPN, strong privileged access management, tested backups (including offline/immutable), EDR monitoring, patch governance,
IT/OT segmentation, controlled remote access, and a documented incident response plan (including OT isolation procedures).
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Can we combine cyber with our manufacturing combined policy?
Cyber is usually placed as a specialist policy alongside your combined programme (property/BI/liability). We’ll advise on the cleanest structure
depending on your OT exposure, export contracts and desired BI protection.
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What information do insurers need to quote cyber for a manufacturer?
Revenue/turnover, employee count, key controls (MFA, backups, EDR), incident history, critical systems, OT overview (if applicable),
remote access method, supplier dependencies, and the level of BI cover required.