Janardhan NYou insure your warehouse, your stock, and even your employees, but what about the invisible threat that could bring your entire operation to a halt?
Cyberattacks are happening every 39 seconds, and India is now ranked second among the most targeted nations. The warehousing industry, increasingly dependent on AI-driven systems, robotics, and cloud infrastructure, has become a prime target for cybercriminals.
With cyberattacks hitting 97 victims per hour globally, the threat is more real than ever.
Consider the ransomware attack on logistics company KNP, which resulted in job losses and significant supply chain delays. Or the attack on Ace Hardware, which disrupted its warehouse management systems and delayed deliveries in 5,600 outlets globally.
These events show how quickly a cyberattack may bring your entire operation to a stop.
The question is, how prepared is your warehouse for the invisible threat of cybercrime?
It’s time for the warehousing industry to take cyber insurance seriously, or risk falling victim to devastating attacks.
In this blog, we’ll explore the cyber risks facing the warehousing industry and how cyber insurance can protect your business from these growing threats.
Mitgata: Leading Cyber Insurance Service Provider
We understand that your warehouse business depends heavily on technology, which brings you unique challenges/risks. At Mitigata, we specialise in providing comprehensive cyber insurance solutions specifically designed for businesses like yours.
Protect Warehouse from Cyber Breaches @ ₹49,000/year*
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How Mitigata Delivers Value to Your Warehousing Business
Personalised Coverage: We provide tailored cyber insurance policies for warehousing companies designed to meet the specific risks that each warehouse company encounters, such as supply chain disruptions, inventory theft, and operational technology failures.
Rapid response and recovery: When a cyber crisis occurs, every minute matters. Our 24/7 issue response team understands the importance of warehouse operations and works quickly to minimise disruption.
Comprehensive Risk Assessment: We audit your digital infrastructure, including warehouse management systems and IoT devices, to detect flaws before they become costly problems.
Business Continuity Support: Our policies cover lost revenue during system outages, allowing you to maintain financial stability even if activities are temporarily disrupted.
Why Choose Mitigata?
- Proven Track Record – With over 800+ organisations served across 25+ industries, including major warehousing and logistics firms.
- Exclusive Access to Mitigata Console – Beyond insurance, you gain proactive threat management tools. Run phishing tests on your drivers, monitor your digital footprint, and get instant alerts
- Partnerships – We’ve collaborated with India’s top insurers to ensure you obtain comprehensive coverage and support through our strong partnerships.
- Best Market Pricing – With our extensive network of insurance partners and deep industry experience, we offer the most competitive prices, ensuring you obtain optimal protection without exceeding your budget.
Why Warehousing Companies Are Prime Targets for Cyber Attacks
The warehousing industry has become increasingly attractive to cybercriminals, and here’s why your business might be on their next target list:
- Rich Data Goldmine
Warehouses store valuable information that criminals can monetise:
- Customer databases with personal and payment information
- Supplier contracts and pricing details
- Inventory data revealing high-value goods and their locations
- Shipping schedules that can be used for physical theft coordination
Example: In 2022, a major logistics company suffered a data breach that exposed customer shipping addresses, allowing criminals to intercept high-value packages before delivery.
- Critical Supply Chain Position
Warehouses are central hubs in global supply chains, making them high-impact targets:
- Disruption multiplier effect: Attacking one warehouse can impact dozens of businesses
- Time-sensitive operations: Any downtime creates immediate financial losses
- Dependency relationships: Suppliers and customers rely on your systems for real-time updates
Example: When ransomware targeted a food distribution warehouse in 2023, it not only halted their operations but also prevented grocery stores from receiving fresh produce, impacting thousands of consumers.
- Outdated Security Infrastructure
Many warehousing companies lag behind in cybersecurity investments:
- Legacy systems that lack modern security features
- Unpatched software with known vulnerabilities
- Limited IT budgets compared to other industries
- Focus on physical security rather than digital protection
Example: A warehouse using a 10-year-old inventory management system became an easy target because the software hadn’t received security updates in years.
- IoT and Connected Device Vulnerabilities
Modern warehouses rely heavily on connected technologies:
- RFID scanners that can be compromised to steal data
- Automated conveyor systems vulnerable to disruption
- Security cameras that can be hacked for surveillance
- Temperature sensors in cold storage facilities
Example: Hackers gained access to a pharmaceutical warehouse by compromising smart temperature sensors, then held the climate control system hostage, threatening to spoil millions of dollars’ worth of temperature-sensitive medications.
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- Human Factor Risks
Warehouse environments create unique cybersecurity challenges:
- High employee turnover makes security training difficult
- Multiple access points with different security levels
- Contractor and visitor access to systems and networks
- Mobile devices used for scanning and communication
Example: An employee at an electronics warehouse clicked on a phishing email on a shared terminal, giving criminals access to the entire network and inventory worth millions.
- 24/7 Operations with Limited IT Support
Around-the-clock operations create security gaps:
- Night shift vulnerabilities when IT support isn’t available
- Weekend operations with minimal technical oversight
- Remote monitoring systems that can be compromised
- Emergency procedures that may bypass security protocols
Example: Cybercriminals specifically targeted a warehouse during weekend hours, knowing the IT team wouldn’t be available to respond quickly to security alerts.
- Financial Attractiveness
Warehousing companies present multiple monetisation opportunities for criminals:
- Ransomware payments to restore critical operations
- Data theft for identity theft and fraud
- Intellectual property theft of logistics optimisation algorithms
- Insider trading information from shipping patterns
Example: A clothing retailer’s warehouse was targeted before a major product launch, with criminals stealing shipping data to predict sales figures for stock market manipulation.
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What Does Cyber Insurance Cover?
Cyber insurance for the warehousing industry provides protection against a wide range of cyber risks. Here’s what a cyber insurance policy typically covers:
Data Breach Response
If your customer or business data is compromised, cyber insurance can cover the costs of alerting those affected, providing credit monitoring, and resolving any legal responsibilities.
Business Interruption
This coverage pays for lost revenue and ongoing costs during downtime caused by a cyberattack on your warehouse or key systems.
Ransomware Protection
Cyber insurance can cover ransom payments (if legally permitted), system repair charges, and even fees for negotiating with hackers if your systems are locked.
Third-Party Liability
If your systems cause a data breach impacting customers, suppliers, or partners, this coverage protects you from lawsuits and claims for damages.
Cyber Extortion
If cybercriminals threaten to release sensitive data or disrupt operations unless paid, this coverage steps in to handle the situation.
System Restoration
Covers the cost to rebuild databases, restore corrupted files, and fix software that’s been damaged during an attack.
Forensic Investigation
Helps cover the cost of expert analysis to determine how the breach occurred, which data was affected, and how to prevent future attacks.
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Confused between so many insurance providers? Check out these top cyber insurance companies and their comparison in this guide.
What Cyber Insurance Does Not Cover?
While cyber insurance for warehousing companies is important, it does not cover everything. Here’s what you should be aware of.
Physical damage to warehouse equipment
Cyber insurance typically does not cover tangible assets, such as machinery, warehouse equipment, or automobiles. Separate property or equipment insurance will be required for this.
Pre-existing vulnerabilities
If your organisation had known security flaws that were not corrected prior to an attack, cyber insurance for a warehousing company may not cover the losses. For example, an out-of-date system that you forgot to upgrade may not be protected if exploited.
Business Decisions
Cyber insurance will not protect you from bad decisions. Your coverage will not protect you if you skip essential security upgrades or fail to invest in proper defences.
Criminal or purposeful actions
If an employee or contractor willfully commits a cybercrime, their losses will not be compensated. Cyber insurance is intended to protect you from external threats, not deliberate conduct within your firm.
Comprehensive Cyber Insurance for Smart Businesses
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How to Choose the Right Cyber Insurance Policy
Selecting the right cyber insurance for a warehousing company depends on the following specific needs:
Assess Your Coverage Limits:
Think about how much downtime could cost your warehouse. A big distribution centre can lose around ₹50 lakhs in a single day if systems go offline. Smaller facilities may experience daily losses of ₹5–10 lakhs.
Costs rise further during peak shipping seasons or when you’re holding high-value inventory.
Setting the right coverage limit means planning for the worst-case scenario, not just the average day.
Industry-Specific Coverage:
Generic cyber policies often miss the risks unique to warehouses. You need protection that clearly covers systems like Warehouse Management Systems (WMS), RFID scanners, automated sorting machines, and temperature monitoring tools.
These are the lifelines of your operation. Ensure the policy also addresses supply chain disruptions – not just direct system failures – so your business remains protected if key partners or processes are affected.
Response Time Guarantees:
Warehouse operations can’t wait for business hours support. Verify that your insurer provides true 24/7/365 incident response with guaranteed response times.
Sublimit Analysis:
Pay attention to individual limits within your policy. Business interruption might have a 12-hour waiting period before coverage kicks in, but warehouse disruptions often cost significant money within the first few hours.
Vendor Coverage:
Modern warehouses rely on numerous third-party providers – from WMS software companies to logistics partners. Ensure your policy covers incidents that start with vendors but impact your operations.
Claim Process:
Ask potential insurers about their typical claims timeline, required documentation, and preferred vendors for incident response. Some insurers have partnerships with specialised forensics firms that understand warehouse environments better than general IT security companies.
Check out our expertly curated cyber insurance cost guide and find out which factors affect its premium.
Conclusion
Warehousing companies invest proactively in cyber insurance policies not only to survive cyber incidents but also to maintain a competitive advantage during crisis situations.
At Mitigata, we’ve helped over 800+ businesses secure comprehensive cyber insurance coverage tailored to their specific industry needs. Our partnerships with India’s leading insurers ensure you get the best protection at competitive rates.
Don’t wait for a cyber attack to expose your vulnerabilities. Contact Mitigata today for a free consultation
