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CYBER INSURANCE FOR STEEL MANUFACTURING SYSTEMS (IT + OT)
Steel manufacturing sites rely on a mix of modern IT and operational technology (OT): PLCs, SCADA/HMI, industrial networks, plant sensors, furnace controls, rolling line systems, weighbridge software, maintenance platforms, and ERP/MRP systems. A cyber incident can be more than “data loss” - it can stop production, disrupt safety systems, corrupt recipes/parameters, and create expensive downtime with long recovery timelines.
Cyber & OT Insurance helps transfer the financial impact of ransomware, business interruption, incident response costs, and liabilities associated with a cyber event. Insure24 arranges cyber programmes for steel manufacturers that reflect real industrial risk and the practical interfaces between IT and OT.
Why OT Cyber Risk Is Different in Steel Manufacturing
“Cyber” in manufacturing isn’t only about emails, files and customer data. OT environments control physical processes - and disruption can create safety incidents, equipment damage, product defects, scrap, and prolonged downtime. Recovery can be slower than office IT because production systems can be highly bespoke and hard to rebuild quickly.
Many steel sites have legacy control systems, vendor remote access, and network segmentation challenges. Underwriters will often ask about segregation of IT/OT networks, patching strategy, backups, incident response plans, and access controls - especially for privileged accounts and remote maintenance.
Common OT/ICS Cyber Scenarios
- Ransomware locks production scheduling, maintenance or HMI systems
- Compromised remote access account used to deploy malware in OT network
- Corrupted parameters/recipes cause quality failures or scrap
- Loss of visibility/control in SCADA results in shutdown for safety
- Supplier compromise spreads via VPN or trusted connection
- Email compromise triggers fraudulent payment to a “supplier”
The biggest cost is often downtime - not only the IT fix.
Why Steel Sites Can Face Longer Downtime
- Bespoke control environments and vendor dependencies
- Complex plant commissioning and safety checks after restoration
- Limited specialist OT cyber resource availability during major events
- Requalification requirements and customer audits after interruption
- Backups not configured for OT (or not tested for restoration)
Cyber BI is often the most valuable section of cover for manufacturers - but it must be structured correctly.
What Cyber & OT Insurance Can Cover
Cyber policies vary by insurer and wording, but most programmes are structured around first-party costs (your own losses) and third-party liabilities (claims against you). In steel manufacturing, you’ll usually want the policy to address ransomware and operational interruption risk, plus incident response and recovery costs.
Ransomware & Incident Response (First-Party)
- 24/7 incident response support (panel experts)
- Forensic investigation and containment
- Data restoration and system rebuild costs
- Ransomware negotiation and payment handling (where permitted and covered)
- Notification and crisis communications costs (where applicable)
- Extra expenses to accelerate recovery
Cyber claims move fast. Having a policy with an effective response panel can materially reduce the duration of interruption.
Business Interruption & Extra Expense
Cyber business interruption is designed to cover loss of income/gross profit and additional costs incurred due to a network interruption or system failure caused by a cyber event (subject to waiting periods and policy definitions).
- Loss of gross profit or revenue from production stoppage
- Overtime, outsourcing and expedited shipping costs
- Temporary equipment or systems to keep trading
- Contingent BI for supplier/customer outages (where included)
For steel sites, a key design question is whether “OT interruption” is clearly within scope and how the policy defines a covered event.
Third-Party Liability & Regulatory Exposure
- Liability for privacy/security incidents (policy dependent)
- Regulatory defence costs (where insured)
- Network security liability claims (policy dependent)
- Media liability and website content (where relevant)
Not every manufacturer has large volumes of personal data, but third-party exposure can still exist through contracts, supply chain and operational disruption.
Cyber Crime / Social Engineering (Optional)
- Funds transfer fraud (payment diversion)
- Invoice manipulation and supplier impersonation
- Email account compromise loss (where insured)
Steel manufacturers often have large supplier invoices and time-sensitive payments - making them a common target for payment diversion scams.
What Insurers Ask About Cyber & OT in Steel Manufacturing
Cyber underwriting has become more technical. Most insurers ask about your core security controls and how you protect OT. The better your controls, the broader the appetite and the more stable terms tend to be.
Controls Commonly Requested
- Multi-factor authentication (MFA) for email, VPN and privileged access
- Offline/immutable backups and regular restoration testing
- Endpoint protection and patch management (where feasible)
- Network segmentation between IT and OT environments
- Restricted vendor remote access (time-bound, monitored)
- Incident response plan and escalation contacts
- User training and phishing awareness
OT realities matter: underwriters know patching can be constrained by uptime and safety requirements - but they still expect risk management.
Information That Helps a Quote
- A simple IT/OT architecture overview (even high level)
- Critical systems list (ERP, MES, SCADA/HMI, PLC environments)
- Backup approach for both IT and OT systems
- Remote access methods and controls
- Previous cyber incidents (if any) and improvements implemented
- Estimated maximum “credible downtime” from a cyber event
We help translate technical details into insurer language so you can obtain terms without weeks of back-and-forth.
“For manufacturers, ransomware isn’t just an IT issue - it’s a production issue. Good backups and an OT-aware response plan can cut downtime dramatically.”
Cyber Risk Adviser, UK ManufacturingFREQUENTLY ASKED QUESTIONS
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What is OT (Operational Technology) in a steel manufacturing site?
OT refers to systems that monitor and control physical processes - such as PLCs, SCADA/HMI, industrial networks, sensors, and plant control systems used in furnaces, rolling lines, cranes and utilities. OT disruption can stop production and create safety risks.
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Does cyber insurance cover ransomware for manufacturers?
Many cyber policies can respond to ransomware events through incident response, forensic costs, system restoration and business interruption, subject to policy definitions, conditions and exclusions. Coverage varies significantly by insurer and wording.
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Will cyber insurance pay for production downtime?
Cyber business interruption may cover loss of income/gross profit and extra expense following a covered network interruption, subject to the policy’s waiting period, triggers and definitions. For steel sites, it’s important that the policy is structured to reflect OT-driven downtime exposure.
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What security controls do insurers usually require?
Common requirements include MFA for email/VPN, strong backups (including offline/immutable backups), patching and endpoint protection, restricted remote access, segmentation between IT and OT networks, and an incident response plan. Requirements vary by insurer and risk profile.
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Do steel manufacturers need cyber crime / funds transfer fraud cover?
Many do, because manufacturing businesses often process large supplier payments and can be targeted by invoice redirection scams. Some cyber policies include social engineering cover, while others require a separate section or standalone crime wording.
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How quickly can Insure24 arrange cyber & OT insurance?
Once we have your turnover, sector, system profile and key security controls (MFA, backups, remote access approach, and any OT segmentation details), we can usually progress quotes quickly. If you’re facing customer cyber requirements or audits, call us and we’ll prioritise the process.