Commercial Insurance
Cyber Insurance Update: Ransomware Attacks in Manufacturing Doubled
Most insurance questions do not begin with policy language. They begin with a practical moment: something changed, a risk became easier to see, or a coverage question started to feel more expensive than it used to. This article is for the point where you are trying to understand business insurance before renewal, a contract requirement, a certificate request, or a claim changes the conversation. The useful move is not to memorize every policy term. It is to name the situation clearly enough that you can ask better questions, compare the right details, and avoid making a decision from pressure or guesswork.
Short answer
Cyber Insurance Update is best understood as a decision guide: use it to identify the main coverage issue, the likely blind spot, and the next question to ask before you rely on a policy, quote, or renewal assumption.
Reader checkpoint
Before you act on this topic, ask these three questions.
- What changed in the business, contract, property, equipment, payroll, or operations since the last policy review?
- Which loss would be hardest for the business to absorb without a coverage response?
- Is this issue handled by the current policy, an endorsement, a separate policy, or a better documentation process?
Quick answer
What this article is mainly about
From 2019 to 2021, ransomware attacks in manufacturing doubled, making it the most commonly targeted industry in 2020 and 2021, … The practical takeaway is to use the article as a starting point for a clearer coverage conversation, not as a guarantee that every policy or claim will be handled the same way.
At a glance
What to identify before the next decision
Main issue
business insurance decision clarity
Common blind spot
Business changes that outgrow last year's policy assumptions
Useful document
Current policy, certificates, contracts, payroll or sales estimates, and claim records
Best next step
Commercial Renewal Readiness Score
How to think through business insurance
From 2019 to 2021, ransomware attacks in manufacturing doubled, making it the most commonly targeted industry in 2020 and 2021, according to Advisen loss data. Advisen’s loss database contains 3,415 ransomware attacks and 189 ransomware attacks in manufacturing. The manufacturing industry is a high-value target for ransomware attacks. Most manufacturers have embraced automation and digitization, but many only store files locally , leaving them vulnerable to attack. Manufacturing companies also store high-value data, such as intellectual property and trade secrets, which makes manufacturers more likely to pay if their information is stolen or hackers threaten to publish it online.
In some cases, hackers will steal data involving third parties as well, such as clients, suppliers and partners. This gives them even more leverage to extort money in a ransomware attack. In addition to ransom payments, ransomware attacks on manufacturing can also be extremely costly in terms of response and business interruption costs. For example, the ransomware attack on meat supplier JBS Foods on May 31, 2021, resulted in a total shutdown of operations and an $11 million ransom, according to Advisen loss data.
Important details to compare
Ransomware Attacks in Manufacturing Industries Looking at ransomware losses by industry over time, public administration and health care were some of the most frequently targeted industries from 2013 to 2019; manufacturing accounted for a relatively small percentage of total ransomware attacks. However, by 2020, manufacturing became the most commonly targeted industry. Ransomware Losses by Industry Within the manufacturing industry, computer and electronic product manufacturing saw nearly double the number of ransomware attacks than any other category at 32%. These attacks include ransomware attacks on an Apple supplier, Samsung Electronics and Bose Corporation, according to Advisen loss data.
Chemical manufacturing accounted for 14% of the remaining losses, while machinery manufacturing and transportation equipment manufacturing each accounted for 12%, according to Advisen loss data.
Defined Q&A
Cyber Insurance Update: common questions
What should I check first for business insurance?
Start with the declarations page and the specific change or risk that made you look up the topic. Coverage conversations get clearer when the question is tied to a real property, vehicle, operation, contract, claim, or renewal decision.
Does this article mean I need a different policy?
Not necessarily. It means the issue is worth checking before you assume the current policy handles it the way you expect. Sometimes the answer is an endorsement, documentation, a different limit, a separate policy, or no change at all.
When should I ask an agent to review this?
Ask before a deadline, renewal, contract requirement, major purchase, property change, business change, or claim decision. A short review is usually easier than trying to fix a coverage assumption after the fact.
The value of this article is not that it turns you into an insurance technician. The value is that it gives you a cleaner way to look at business insurance before the decision becomes rushed. A better question asked early can prevent a frustrating answer later.
If one part of this topic felt familiar, start there. Pull your policy, contracts, certificates, payroll or sales estimates, and recent operational changes, then compare that real-world detail against the coverage question raised above. One clearly understood item is worth more than a full policy read done under pressure.