All industries are vulnerable to cybersecurity threats. Such risks have infiltrated the oil and gas sector significantly, affecting everything from proprietary data to production. It’s critical for operators to invest in oilfield insurance for coverage and security against concerns like these. Here’s what you need to know about how cyber liabilities impact the energy industry.
Cybersecurity Risks to the Oil & Gas Industry
The energy industry depends largely on technology for many of its processes, from automation to safety. Many popular commercial platforms can support these tasks efficiently, but any type of vulnerability in the operating system can leave the sector at risk. Sharing information between networks, such as production data, leaves those details at risk of outside intrusion.
Cyberattacks can be both intentional and inadvertent. The system may be penetrated by a malicious intruder, or human error might occur. For example, someone might mistakenly open a threatening email attachment or make a connection to an unsecured network.
A minuscule event like this can have widespread repercussions, forcing production to come to a halt while the threat is addressed. This, in turn, can affect the operator’s financial interests and reputation in the energy industry.
How Oil & Gas Insurance Companies Offer Protection
Oil and gas insurance is a wide-reaching product that provides security for everything from equipment to disaster cleanup. Cyber liability is just as vital to operators, however. It’s crucial to protect all of the assets involved, both below the ground and above it.
Often, oil and gas companies are targeted by offshore operators who seek to hack systems and gain control of private information. In severe situations, entire systems could be wiped of data.
Insurance steps in when such digital disasters occur, providing essential protections in the aftermath of a physical or financial loss. A comprehensive policy offers full-scale coverage to insure losses incurred directly as a result of the cyber threat, such as costs associated with investigating the crime and retrieving the lost information.
If you’re interested in oil and gas insurance, the team at Western States Insurance Group, Inc., in Lovington, NM, can help. The agency proudly offers a variety of valuable insurance products designed to secure all areas of your life, from your health to your vehicle. They serve clients throughout Lea County, New Mexico and Texas. To find out more about how they can assist you, visit them online, or call (575) 396-1318 to speak with a representative. Follow Western States Insurance on Facebook and Twitter. .