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Dream Assurance Group

Cyber Security Insurance
in Trucking

The Bane of Cyber Threats

Cyber security insurance

The trucking industry is undergoing a digital transformation, with increased reliance on technology for everything from fleet management and logistics to driver communication and navigation.

While this revolution brings significant benefits, it also exposes trucking companies to a growing threat: cyber attacks; which include data breaches, compromised data due to phishing, and other cyber incidents caused by ineffective security processes.

what is cybersecurity insurance

What is Cybersecurity Insurance?

Cyber security insurance, also known interchangably as cyber liability insurance, is a type of insurance policy that helps protect businesses from the financial losses associated with cyber attacks.

These cyber attacks can include data breaches, ransomware attacks, and other malicious activity that can disrupt business operations, damage reputations, and lead to significant financial losses.

  • Data breach notification and credit monitoring services
  • Legal expenses, legal fees, and fines
  • System restoration and data recovery
  • Ransomware payments (in some cases)
  • Loss of business income due to a cyber attack

How Does Cyber Security Insurance Work?

When a business purchases a cyber security insurance policy, they are essentially transferring some of the financial risk associated with cyberattacks to the insurance company.

In the event of a cyber attack, the business can file a claim with their insurance company to help cover the costs of responding to the attack and recovering from the damage.

Cybersecurity Threats in the Trucking Industry

The trucking industry faces unique cybersecurity threats due to its reliance on technology and the valuable cargo it transports. Here are some examples:

Vulnerable technology

Many trucks are equipped with connected devices, such as electronic logging devices (ELDs) and GPS systems, which can be exploited by hackers.

  • Electronic Logging Devices (ELDs): Hackers can exploit vulnerabilities in ELDs to manipulate data, tamper with driving records, and even gain control of braking systems.
  • GPS Tracking Systems: Hackers can manipulate GPS data to divert trucks or steal cargo.
  • Telematics Systems: Hackers can gain access to sensitive data, such as driver information, fuel levels, and truck location.
cartoon laptop with caricatures running about
cyber security breach

Targeted attacks

Truckloads often contain valuable cargo, making them attractive targets for criminals.

  • High-Value Cargo: Hackers may target trucks carrying valuable cargo, like pharmaceuticals or electronics, for theft or ransom.
  • Disruption of Supply Chains: Hackers may attack trucking companies to disrupt critical supply chains and cause economic damage.
  • Data Theft: Hackers may target trucking companies to steal sensitive data, such as driver information, financial records, or trade secrets.

Social Engineering Attacks

  • Phishing: Hackers may send emails or text messages to truck drivers, posing as legitimate companies or individuals, to trick them into revealing sensitive information or clicking on malicious links.
  • Pretexting: Hackers may create fake websites or social media profiles to trick truck drivers into providing personal or financial information.
  • Watering Hole Attacks: Hackers may compromise websites that truck drivers frequent, such as truck stops or news websites, to infect their computers with malware.

Insider Cyber Threats/Insider Attack

  • Disgruntled employees: Disgruntled employees may steal data, sabotage systems, or commit other acts of cyber crime.
  • Contractors and vendors: Third-party vendors with access to a company’s network can pose a security risk if their systems are compromised.
  • Unauthorized access: Employees or contractors may accidentally or intentionally access data that they are not authorized to see.

Emerging Cyber Threats

  • Ransomware attacks: Hackers may encrypt a trucking company’s data and demand a ransom payment in exchange for decryption.
  • Supply chain attacks: Hackers may target a supplier of a trucking company to gain access to the trucking company’s network.
  • IoT attacks: Hackers may exploit vulnerabilities in Internet of Things (IoT) devices used in trucks, such as sensors and cameras, to gain access to the network or steal data.

It’s important for trucking companies to be aware of these threats and take steps to mitigate them. This includes bolstering poor security processes, such as:

  • Regularly updating software and firmware
  • Using strong passwords and multi-factor authentication
  • Training employees on cybersecurity awareness and best practices
  • Implementing security controls such as firewalls and intrusion detection systems
  • Having a plan for responding to cyber attacks

By taking these steps (on top of having cybersecurity insurance), trucking companies can protect themselves from the financial losses, operational disruptions, data breaches, and reputational damage that can result from cyberattacks.

Cyber Insurance Coverage: How Can It Secure Your Business

There are a variety of different types of cyber security insurance coverage available, each with its own unique set of benefits and limitations. Some of the most common types of cyber coverage include:

Data Breach Coverage

This coverage helps businesses pay for the costs of notifying affected individuals and agencies, providing credit monitoring services, and complying with regulatory requirements in the event of a data breach.

happy trucker with cyber security insurance protection

Cyber Extortion Coverage

This coverage helps businesses pay for the costs of responding to a ransomware attack, including the ransom payment itself (up to the your cyber insurance policy’ limits).

Business Interruption Coverage

This coverage helps businesses pay for lost income and other business expenses that result from a cyberattack that disrupts operations.

Privacy Liability Coverage

This coverage helps businesses pay for the costs of defending lawsuits arising from a violation of privacy laws.

coin pouch beside a cargo truck toy

How Much Does Cyber Insurance Cost for Trucking Businesses?

The cost of cyber security and cyber insurance policies for trucking businesses can vary depending on several factors, including:

  • Size of the fleet: Larger fleets with more trucks and drivers will typically pay more for insurance.
  • Type of cargo: Trucking companies that transport high-value cargo, such as pharmaceuticals or electronics, may pay more for insurance.
  • Cybersecurity risk profile: Companies with poor cybersecurity practices and a history of cyberattacks will likely pay more for insurance.
  • Level of coverage desired: Companies that want more comprehensive coverage, such as coverage for ransomware payments or business interruption, will pay more for insurance.
  • Deductible: The deductible is the amount a company must pay out of pocket before their insurance coverage kicks in. A higher deductible will result in a lower premium.

Estimated Costs

On average, trucking companies can expect to pay between $1,000 and $8,000 per year for cyber security insurance.

However, some companies may pay as little as $500 per year for cyber liability coverage or as much as $20,000 per year.

Additional Factors Affecting Cost

  • Technology systems used: Companies that use more advanced technology, such as ELDs and GPS tracking systems, may pay more for insurance.
  • Data stored: Companies that store sensitive data, such as driver information and financial records, may pay more for insurance.
  • Security practices: Companies with strong security practices, such as employee training and data encryption, may pay less for insurance.

Why is Cyber Insurance Important and Where to Get Cyber Liability Insurance Policy

Cyber liability insurance is a vital tool for trucking companies in today’s digital age. By investing in this type of commercial trucking insurance, trucking companies can protect themselves from the financial devastation of a cyberattack and ensure the continued success of their business.