Cybercriminals aren’t just attacking data centers; they’re targeting your factory floor. For modern manufacturers, cyber risk isn’t a back-office issue. It’s a frontline business threat. From ransomware halting production lines to phishing schemes stealing intellectual property, threat actors are rapidly going after industrial operations.
Munich Re states the global cyber insurance market is projected to reach $16.3 billion in premiums by 2025 and nearly double to $29 billion by 2027. That growth reflects a rising reality: Insurers underinsure, reject, or charge sky-high premiums to manufacturers without strong cybersecurity programs.
Insurers demand hardened systems, documented policies, and proactive security practices. You’re either exposed or overpaying if you can’t demonstrate a mature cyber posture.
That’s where Keystone comes in. As a Managed Service Provider (MSP) with deep IT and OT (operational technologies) security expertise, Keystone helps manufacturers qualify for comprehensive cyber insurance while reducing their premiums and risk. This guide explores why cyber insurance is critical, what it takes to secure coverage, and how Keystone ensures you’re technically, strategically, and financially ready.
Key Takeaways
- Cyber insurance is essential for manufacturers to stay protected and competitive in today’s threat landscape.
- Strengthening cybersecurity lowers your premiums and reduces the risk of denied claims.
- Due to IT and OT convergence, industrial control systems are increasingly vulnerable to cyberattacks.
- Partnering with Keystone helps you meet insurer requirements and avoid costly data breaches.
- A proactive cybersecurity plan keeps your operations running and your insurance coverage strong.
Why Cyber Insurance is Non-Negotiable for Manufacturers
Escalating Threat Landscape
Manufacturing organizations have increasingly become targets for cybercriminals due to valuable intellectual property and their critical role in supply chains. Ransomware encrypts data and shuts down physical operations, which dramatically escalates financial losses through production downtime and repair costs.
With IT/OT convergence, previously isolated Industrial Control Systems (ICS) like Supervisory Control and Data Acquisition (SCADA) and programmable logic controllers (PLCs) now present additional cybersecurity vulnerabilities.
The High Cost of Cyber Incidents
Cyber incidents rack up both direct and indirect costs. Downtime affects business operations, causing delayed deliveries and reputational harm.
Additional expenses include forensic investigations, regulatory fines, public relations management, and legal fees. Most business liability insurers exclude cyber risks from their policies, so manufacturers must rely on specialized cyber insurance for comprehensive financial protection.
Mandatory Cyber Insurance
More than ever, clients and supply chain partners require proof of adequate cyber insurance coverage from manufacturing companies. This requirement underscores the necessity of robust cybersecurity and suitable cyber liability insurance to meet contractual obligations and secure new business opportunities.
The Evolving Landscape of Cyber Insurance Qualification
As the frequency and severity of cyber incidents grow, particularly in sectors like manufacturing and healthcare, insurers are tightening their underwriting criteria. Rising claims and payouts have forced carriers to rethink how they evaluate applicants for cyber coverage.
To qualify for a comprehensive policy, manufacturers must prove their cybersecurity posture using tested systems, trained personnel, and documented protocols.
Insurers now use detailed risk assessments to gauge eligibility and pricing. These assessments scrutinize your entire environment, from industrial control systems (ICS) to cloud-based email platforms. They evaluate your ability to detect, respond to, and recover from cyber threats, with an emphasis on technical controls and organizational readiness.
Common Cyber Insurance Requirements Include:
- Multi-Factor Authentication (MFA) for remote and privileged account access
- Endpoint Detection & Response (EDR) tools for real-time threat monitoring
- Regular Data Backups & Disaster Recovery that are tested, isolated, and immutable
- Incident Response Plans (IRP) are documented, regularly tested, and understood organization-wide
- Employee Security Awareness Training, including ongoing phishing simulations
- Network Segmentation between IT, OT, and critical data systems
- Access Control & Least Privilege protocols to minimize exposure
- Vulnerability Management & Patching are conducted regularly
- Robust Email Security featuring DMARC (Domain-based Message Authentication, Reporting & Conformance), SPF (Sender Policy Framework), and DKIM (DomainKeys Identified Mail) protections.
- Privileged Access Management (PAM) for administrator account security
- Supply Chain Risk Management to assess and monitor third-party cybersecurity risks
Insurers are no longer satisfied with vague security claims. They want specifics: proof of tested procedures, compliance documentation, and real-world evidence that your organization can withstand and recover from a cyber event.
This is where case studies play an essential role. Many underwriters now review industry-specific examples to benchmark applicants against peers. Whether it’s a healthcare provider that successfully recovered from a ransomware attack or a manufacturer that avoided a data breach due to strict access controls, these case studies influence how insurers define acceptable risk.
Internal teams without deep cybersecurity expertise often struggle to meet these modern standards. That’s why many organizations turn to third-party providers like Keystone, who implement these controls and prepare you to pass insurer scrutiny with confidence. When you prepare properly, you’re more likely to secure affordable cyber coverage and avoid surprises during claims processing.
How Keystone Helps Manufacturers Qualify for Cyber Insurance
1. Comprehensive Security Posture Assessment & Gap Analysis
Keystone assesses your cybersecurity posture across manufacturing facilities, identifying gaps that could disqualify you from insurance coverage or result in higher premiums. The analysis generates a detailed roadmap for necessary improvements.
2. Implementation of Required Cybersecurity Controls
Keystone deploys essential security controls like MFA, EDR, and advanced firewalls. We also manage backups, disaster recovery systems, and patch cycles, directly meeting insurer technical requirements.
3. Documentation Development and Testing
Insurers require detailed documentation to approve your cyber insurance coverage. Keystone assists in creating and refining critical documents such as Incident Response Plans, acceptable use policies, and disaster recovery plans, ensuring they are tested and ready for use.
4. Expert Guidance on IT/OT Convergence
Keystone specializes in securing converged IT/OT environments, a key insurance concern due to increased vulnerabilities. Our expertise includes implementing industrial cybersecurity best practices such as the Purdue Model, industrial DMZs, and specialized OT monitoring.
5. Security Awareness Training
Our comprehensive employee training programs, including regular phishing simulations, address cybercriminals who frequently exploit human vulnerabilities. Employees who complete these programs help your organization meet insurance requirements and reduce risk.
6. Continuous Monitoring and Compliance
Keystone offers real-time 24/7 cybersecurity monitoring, promptly identifying and mitigating threats. Ongoing monitoring demonstrates your proactive stance to insurance underwriters, significantly enhancing your risk profile.
7. Direct Support with Insurance Brokers and Underwriters
We directly engage with insurance providers, clearly communicating our robust cybersecurity measures and responding accurately to technical inquiries. Keystone’s proactive communication streamlines the underwriting process and increases your chances of getting favorable policy terms.
How Keystone Helps Manufacturers Save on Cyber Insurance Premiums
Demonstrating a Stronger Risk Profile
Manufacturers must prove their resilience against cyber threats in this high-stakes cybersecurity environment to access favorable insurance terms. Keystone helps companies in the manufacturing industry implement layered defenses, including endpoint detection, network segmentation, and access controls, all of which signal to insurers that your organization takes risk seriously.
When you combine continuous monitoring with strong documentation, you demonstrate a mature cyber posture and reduce your perceived risk, translating directly into lower cyber insurance premiums.
Avoiding Exclusions and Denials
Many cyber insurance policies include strict conditions. If your systems don’t meet specified requirements, your insurers can exclude or deny claims, even after an incident. This is especially problematic for the manufacturing industry, where operational downtime caused by a cyber event can result in substantial losses.
Keystone ensures that your organization is technically compliant and maintains verifiable, up-to-date documentation. Keystone minimizes the risk of unexpected denials by maintaining oversight.
and ensures your coverage remains valid when needed.
Preventing Cyber Claims
The most effective way to keep insurance costs down is to avoid incidents altogether. Keystone reduces the likelihood of cyber threats turning into full-blown claims by deploying real-time detection tools, patch management, and 24/7 response protocols.
For manufacturers, this means less risk of disrupted production lines, compromised intellectual property, or costly data breaches. A clean claim history keeps your premiums low and builds long-term trust with underwriters.
Streamlining the Application Process
Many manufacturers find the cyber insurance application process overwhelming, especially for internal IT teams focused on daily operations.
Keystone simplifies it by collecting technical data, aligning documentation with insurer requirements, and directly handling broker questions. Keystone speeds up the process and shows underwriters that your manufacturing organization receives expert guidance and a cohesive cybersecurity strategy in place.
Strategic Planning for Future Savings
Cyber threats continue to evolve, and insurers quickly adjust their expectations. Keystone’s forward-looking approach helps the manufacturing industry stay ahead of emerging risks and tightening policy criteria.
Through continuous improvement and periodic reassessments, Keystone enables you to maintain insurability and secure premium savings year over year. The result is lower costs and stronger protection for your business operations.
Final Thoughts: Qualify Faster, Pay Less, Stay Protected
Cyber insurance is your manufacturing company’s last line of defense when every second of business interruption costs thousands, and every exposed file could compromise sensitive data or trigger costly cyber claims. Here’s the reality: without expert guidance, an incomplete policy may leave gaps in your coverage.
Keystone bridges the gap between risk and readiness. Our cybersecurity experts design custom cybersecurity plans for manufacturing organizations that strengthen your security posture and ensure you qualify for the best insurance products on the market, without the headaches of dealing with insurers alone.
If you’re serious about protecting your operations, minimizing risk, and gaining leverage in underwriting negotiations, it’s time to take the next step.
Want coverage you can count on? Talk to Keystone for a free consultation.
