JLR was not insured for cyber attack, claims industry journal – Tech Digest

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Jaguar Land Rover (JLR) may be facing the financial fallout from a major cyber attack without the safety net of insurance, according to a recent report.

The industry journal The Insurer alleges that the British carmaker “failed to finalise” a cyber insurance deal before hackers struck in late August, bringing its global production to a halt.

Citing three sources from the insurance sector, the journal claims that JLR was still in negotiations for a policy when the incident occurred. This puts the company at risk of footing the entire bill for the attack, with losses already estimated to be in the hundreds of millions of pounds due to the extended factory shutdown.

The revelation contrasts sharply with other companies that have suffered similar attacks. For example, Marks & Spencer was targeted in a cyber incident in April but stated that the estimated £300 million cost would be largely offset by its cyber insurance cover.

As JLR scrambles to restore its systems, the UK government is reportedly exploring options to support the carmaker’s supply chain, which employs over 200,000 people.

One idea under consideration is using taxpayer money to purchase components from suppliers to keep them in business, a move that would represent a significant government intervention in the private sector in response to a cyber attack. Another is to provide loans, similar to the Covid bounce back loans.

JLR has so far declined to comment on the allegations, citing a policy of not discussing commercial matters. The lack of insurance coverage, if confirmed, would represent a severe financial blow to the company and highlights the growing risks that cyber threats pose to major industries.

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