Cyber Liability for Manufacturers: Why OT/IT Convergence Is a Growing Risk

For manufacturers, a single cyberattack can halt production, compromise proprietary processes, and trigger cascading failures across a facility. At Pitcher Insurance Agency, Inc., we are committed to helping our clients understand the evolving landscape of industrial cybersecurity and how cyber liability insurance can help them reduce the financial impact of unforeseen attacks.

Understanding OT/IT Convergence and Its Risks

Operational technology (OT) can refer to the hardware and software that controls physical equipment such as programmable logic controllers, SCADA systems and automated assembly lines. Information technology (IT) can cover emails, ERP platforms and data networks.

When a ransomware attack hits your company, the damage can spread throughout the facility. Common exposures manufacturers face include:

• Production downtime caused by locked or corrupted control systems
• Theft of proprietary formulas, designs or client data
• Regulatory notification obligations following a breach
• Third-party liability when a supplier or customer is affected

Why Manufacturers Need Cyber Liability Insurance

General liability and commercial property policies are not designed for cyber-attacks and data breaches. A cyber liability policy fills that gap, addressing costs tied to business losses, data recovery, crisis communications and third-party claims.

Coverage needs may vary by operation size, the complexity of connected systems, and the sensitivity of data handled. An independent agent can assess those specifics and match coverage to the actual exposure rather than offer a one-size-fits-all policy.

How We Support Your Cybersecurity Journey

We believe that effective risk management starts with understanding your operations. Our approach includes:

• Evaluating your current OT and IT integration
• Identifying vulnerabilities unique to your manufacturing environment
• Recommending tailored cyber liability coverage and risk mitigation strategies

As cyber threats continue to evolve, having the right insurance partner is essential. Contact our team today to discuss your options and request a quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.