Standardization of Insurance Policies Could Improve Defense Contractors’ Cybersecurity


One way the Pentagon could improve the cybersecurity of its supply chain would be for standardized insurance policies that cover cyberattacks, according to a new report “The Time for Cyber Insurance: Coverage Improves Supply Chain Resiliency,” from the Foundation for the Defense of Democracies.

Cyber disruptions can lead to a freeze in contractor operations, a failure to perform under contract, or the need to find replacement parts to due to supply chain disruption. However, “due to a lack of Defense Federal Acquisition Regulation Supplement requirements, many critical DIB businesses still lack this important coverage,” the report states.

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