Do you know the difference between cybersecurity and cyber insurance? Several leaders in machine shop management recently discussed this topic in light of the latest cyber threats to industry giants like Boeing—threats that emphasize the digital security risks every manufacturing business faces today. Even yours.
Cybersecurity or Cyber Insurance?
Cybersecurity is the digital equivalent of a security system for your home, involving proactive measures to protect your network and data.
Cyber insurance, on the other hand, is your safety net for when these measures fail. Depending on the carrier, your cyber insurance policy may cover first-party losses (such as data destruction), third-party losses (such as liability actions), and even the legal expenses resulting from a cyberattack.
Cybersecurity and cyber insurance are both essential to a comprehensive cyber defense strategy.
Every Business Is at Risk—Even Boeing
Boeing is a titan in the aerospace and defense industry, yet the massive corporation suffered a significant cyber threat in October 2023. Almost 45 gigabytes of allegedly stolen data were leaked by a Russia-affiliated ransomware group, highlighting the increasing threat to our industry and the tremendous importance of cybersecurity for manufacturing businesses.
The leaked data included Citrix logs, email backups, and security controls, signaling a serious violation of Boeing’s digital infrastructure and serving as a stark reminder of the ever-present threat of cyberattacks—especially for companies managing sensitive and critical data.
Assess Your Risk and Get Covered
Cyber threats are not limited to large corporations. Smaller businesses often have fewer resources and protocols in place, making them attractive targets for cybercriminals.
Recognizing these threats, NTMA has taken steps to protect our network and our members. In preparation for our cyber insurance renewal, we recently underwent a risk assessment that highlighted vulnerabilities, recommended cybersecurity measures, and provided us with a cybersecurity score.
Arrange for a third-party risk assessment to help you identify the gaps in your current cybersecurity plan. You may qualify for lower cyber insurance rates as a result!
CMMC Compliance (Are You Ready?)
Don’t risk losing contracts and customers by delaying CMMC compliance. For manufacturers working with the Department of Defense, compliance with the Cybersecurity Maturity Model Certification (CMMC) will soon be a requirement.
Early adoption of CMMC standards not only prepares you for the inevitable regulatory changes but also demonstrates your commitment to cybersecurity for manufacturing customers. As bad as any breach would be for your business, the devastation would skyrocket if hackers accessed your customers’ systems through your own.
If You’re Online, You’re at Risk
We cannot overstate the importance of implementing a cybersecurity plan and obtaining cyber insurance. Your general liability insurance won’t cover cyber incidents. Failing to implement robust cybersecurity strategies and declining cyber insurance could jeopardize your entire business, your customers, and your reputation.
Make data security more than a checkbox on your to-do list. Protecting your company against cybercrime requires a comprehensive strategy with a cybersecurity plan and the appropriate cyber insurance. Don’t wait until it’s too late.
Stay informed. Join NTMA!