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Introducing Logistics CyberSuiteTM | A Cyber Insurance Solution

4 Reasons Why Logistics Service Providers are Perfect Targets for Cyber Crime

Have you heard the phrase, your biggest strength can also be your biggest weakness? Logistics Service Providers (LSPs) pride themselves on skillfully and deftly integrating networks, processes and disparate datasets, to get their customer’s freight moved from point A to B.

This inherent strength can also be a major weakness that’s exploited in the age of cybercrime.

Logistics Service Providers are prime targets for cyber criminals for four reasons.

  1. Their dependency upon third-party networks.
  2. The speed with which logistics transactions are conducted.
  3. The number of stakeholders involved in sharing information.
  4. The potential access to confidential and sensitive financial, employment and intellectual property records.

In addition, exposure to cybercrime is further exacerbated in today’s COVID environment. With teams working remotely from home, the ability for IT departments to control and contain scams is much more difficult, which is why cyber insurance is so important.

Cyber crime exposes LSPs to financial loss, liability and reputational damage.

To address these and other types of risks, cyber insurance is available. However, most cyber policies are not specifically designed for the logistics/transportation industry and its unique exposures. Also, most standard policies come with relatively low limits for the types of losses occurring in the logistics sector. These include phishing losses in which a cybercriminal uses deceptive email tactics to extract money from a company, and ransomware claims, a form of malware that prevents users from accessing their computer system or files until a ransom is paid.

In addition, having the right cyber insurance is only one facet of a comprehensive, coordinated program. Risk management is also critical in pinpointing and knowing an operation’s vulnerability to help mitigate risk as well as having the support and guidance in managing a loss when an incident occurs.

For these reasons, Roanoke has developed the  Logistics CyberSuiteTM.

To provide a customized cyber insurance solution for LSPs, Roanoke has designed an exclusive program to combat cybercrime and assist in recovery when breaches happen.

  • Cyberwrite: A report card that measures your cyber risk using cutting-edge technology that accesses your publicly available information from your website, connected networks, and company digital footprint to assess your specific cyber exposures and rank them based on overall risk. A cyber breach financial loss calculator will provide you with an estimate of the hard costs involved following a cyber breach at your company. Your IT department can use this assessment to fix vulnerabilities that exist, helping you to mitigate a potential loss. Risk managers and business owners can use it determine how much coverage to buy.
  • eRiskHub: This portal provides cyber risk training and support to your company to help staff avoid becoming a victim to scams such as phishing, wrongfully releasing funds and other criminal cyber activities. All employees – from those on the operation and sales side to C-suite level and risk managers – have free access to articles, white papers, videos, webinars, best practices, various tools and calculators.

The eRisk Hub also offers a 50-state outline of cyber laws and their statutory obligations following a cyber breach along with several other risk tools that can help your organization without having to seek support from several outside firms.

Additional consulting services are available including various risk management cybersecurity workshops.

  • Cyber Breach Coaching – In the event of a breach or other cyber attack, you have access to the law firm Lewis Brisbois LLP’s award-winning Data Privacy and Cybersecurity team to help you manage the incident – from notification compliance to client and vendor communication and crisis management. A 24-7 hotline is available to manage the process, professionally, and promptly.
  • Insurance Coverages – Designed by Roanoke, the policy has been designed to provide coverage for:
    • Business Interruption – Most Cyber policies fall flat by limiting Business Income losses to events occurring within your own network where the Logistics CyberSuiteTM extends coverage to outsourced technology vendors as well. So if a network you are dependent upon goes down, you are covered.
    • Cyber Crime – Covers fraudulent payments made on a fraudulent billing invoice or transfer of funds to a third-party as a direct result of a fraudulent written, electronic or telephone instruction designed to mislead the company.
    • Extortion & Ransomware – Covers the costs involved in ransom demands and expenses to mitigate an extortion attempt of disclosing, encrypting, or theft of data by an extortionist; ransomware is one of the most prevalent types of claims we are seeing in the industry and is affecting logistics companies of all sizes.
    • Data Access & Business Interruption – Covers the costs of cyber events affecting your customers, employees and vendors who may incur financial loss due to a data breach or other cyber event caused by you.
    • Data Loss & Restoration – Covers the costs to regain, repair, restore or recreate damaged, lost or destroyed data. Even if your data is backed up, there is a significant expense in getting the data to fit your upgraded system or to be integrated into a third-party system.
    • Data Incident Response – Covers reasonable expenses for professional crisis management and PR costs, forensic fees, and legal and consulting fees to limit further loss. Also, covers the costs to manage statutory requirements, notification costs, and credit monitoring services as a result of your firm’s improper use of personal data or resulting from any theft, loss, or unauthorized disclosure of personal data in your care, custody or control.

A 24-Hour Claims Hotline is available to report incidents.

The descriptions of coverage are generalized and are subject to the specific policy’s terms, conditions and exclusions. For full coverage details, please refer to the actual policy forms and terms and conditions.

Applying for cyber insurance coverage is easy, as Roanoke has streamlined the entire process. It takes as little as five minutes to complete the on-line application, available here.  Once the application is complete you should expect to receive a proposal within a couple of days unless additional information is required.

Cyber risks for business are on the rise, with 81% of large businesses and 68% of small businesses suffering a cybersecurity attack in the last year. The logistics sector in particular has been targeted by cyber criminals, and requires a robust cyber insurance and risk management solution. Logistics CyberSuiteTM is designed to provide that solution.

To access the Logistics CyberSuite™ Brochure, please submit the information requested in this form.