Jeep Hack Drives Cyber, Crisis, Liability And Supply Chain Coverage Issues

A recall notice to fix critical control software on 1.4 million vehicles should raise concerns for companies, brokers and insurers across several business lines. The vulnerability of vital control systems to a remote hacking threat is a significant exposure that raises concerns for many industries and supply chains. As we learned late last year with a German steel mill cyber event, the threat of physical harm caused by a control system hack is no longer theoretical. Governments, companies, brokers and insurers must recognize and understand the risks, implement safety measures and consider loss contingencies. Emerging coverages for cyber exposures, automotive or components product recalls and supply chain risks can assist companies with surviving crisis cyber events.