In late 2014, a steel manufacturing facility in Germany lost control of its blast furnace, causing massive damage to the plant. The catastrophe's trigger was traced not to employee error, but rather, a cyber attack.

Hackers had used a "spear phishing" campaign, sending targeted individuals at the company legitimate-looking e-mails that, when opened, pilfered logins and passwords that were used to break into the facility's furnace-control systems.

While facility damage resulting from a cyber attack is rare, the event was an eye-opener for manufacturers worldwide. "People think of Cyber risk in terms of data privacy, not property damage and downtime," says Geoff Taylor, executive vice president for Willis Insurance Services of California, in San Francisco.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.