As more and more businesses integrate technology into their operations, a growing threat comes in the form of cybersecurity risks. The agriculture business industry is not immune and a cybersecurity claim could be catastrophic to your company.
Most insurance policies cover a physical interruption to your business operations, such as storm damage or equipment failure. A cybersecurity policy is the only type of policy that covers non-physical business interruption.
The most surprising facet of cybersecurity claims is just how severe each incident can be. From the length of business downtime to the financial hit that comes from ransomware or extortion, the cost is felt in more ways than one.
Like most types of claims, cyber security claims have the potential of halting your entire operations. If your systems are breached, it may take days or weeks to repair the damage and get your processes back online.
These interruptions can be devastating to a business. The average downtime from a cyber risk claim is 23 days. This would be an inconvenience in the automobile manufacturing industry, for example. But for an industry that deals in rapidly perishable goods, like the agriculture industry, those three weeks of downtime could mean the loss of an entire crop of produce.
Other concerns that stem from cybersecurity threats include ransomware or even reputation management. These threats are often out of your control, but still possess the potential to cause significant damage to your business over time.
Unfortunately, as the number of cyber incidents increase, so too are the number of businesses that are purchasing cybersecurity insurance. This is causing a tightening of the marketplace, making it more difficult for clients to obtain this coverage.
As the number of insured grows, underwriters are increasing their scrutiny of potential clients. Additionally, companies seeking to find coverage are experiencing a more and more rigorous underwriting process. This is requiring companies to improve their technology and equipment and incur a larger expense simply to obtain coverage.
While the agribusiness industry is unique in many ways, the methods of protecting your business are the same as with most other industries. There are several steps you can take to ensure your business is able to obtain coverage and to be better protected against cybersecurity threats.
Cyber security risks are a major threat to all businesses, including those in the agriculture sector. No company is truly immune and understanding your exposure is the first step in ensuring you’re prepared for a potential attack.
If you want more information, watch our On-Demand Webinar on Cybersecurity Risks for Agribusinesses (password: Cybersecurity1!).
Reach out today if you’re ready to discuss your cybersecurity coverage options. We can help assess your level of risk and ensure you’re prepared to get your business back up and running.
Note: This communication is for informational purposes only. Although every reasonable effort is made to present current and accurate information, Oswald makes no guarantees of any kind and cannot be held liable for any outdated or incorrect information. View our communications policy.