Auto Dealerships are Susceptible to Cyber Attacks
Because of the interconnected systems between car dealerships and other entities (including lendors) and the way data is stored, it is easier for hackers to obtain financial information, driving records and consumer information. For instance, a hacker was able to break in and capture personal and financial information of the dealerships customers due to the lack of adequate systems to protect this information. With cyber liability coverage, the dealership was reimbursed for notification costs as well as legal, data restoration and IT vulnerability remediation expenses.
A cyber hacker in a coffee shop across the street from a car dealership was able to pry on the 20-30 bugs woven inside the automobiles lines of code (LOC). The LOC were damaged in several of the new cars because a hacker preyed upon the vulnerability of the commercial software. If the dealership had cyber liability insurance, the costs to replace, restore or recreate the LOC would be covered.
Interconnectivity of Carmakers, Dealerships, Suppliers and Vendors
A car manufacturer’s design and production teams store their data in the cloud, along with maintenance and supplier records. If this were hacked by another car maker or even a tech savvy guru, many important aspects of how it operates and conducts business would be compromised. With cyber liability insurance, the manufacturer would be protected from claims related to privacy violations, and defense costs would also be covered.
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