As technology has advanced, so have tools that aid logistics companies in achieving better cost and operational efficiencies. Unfortunately, these new innovations have also opened more doors for risks leading to serious fiduciary losses. Naturally, information security has become a top concern, with most data breaches averaging almost $4 million in lost revenues and related expenses for each single incident. With that kind of money at stake, there’s no question that you need cyber liability coverage in your total transit insurance solution.
Unique Risks in the Shipping Industry
No matter where your company sits in the supply chain, it faces the possibility of security compromises resulting in the loss, exposure or corruption of sensitive data. Other serious consequences include:
- Business interruption from impaired IT infrastructure
- Impacts to business partners and clients
- Fines and litigation expenses
- Costs incurred while notifying affected parties
- Negative impacts to your firm’s reputation
All these can prove to be extremely costly, but adding the right kind of cyber liability to your transit insurance package ensures that you’re ready when a breach occurs. Although you might not incur a $4 million bill to rectify the damage, being prepared with indemnity protection is a must. Your insurance agent can advise you on the best products to fit your company’s complex risk management picture.