In the world of logistics, visibility is everything. You track every pallet, container and mile. Yet, the most disruptive threats to UK and US warehousing today aren’t necessarily physical, they can – and are – digital, silent, and increasingly targeting the quiet backbone of our economy.
Recent events have rung significant bells within the sector. From the ransomware attack on Peter Green Chilled that disrupted food deliveries to major UK supermarkets, to the JAS Worldwide incident that stalled global freight operations, the message is clear: if you move goods, you are a potential target.
We believe that protection should create confidence and clarity, not complexity. As a result of there being a staggering 400%+ surge in supply chain attacks, there are methods of understanding what exactly is happening and how brokers and SME businesses can stay one step ahead.
“Perishable” Goods: Data and Uptime
Warehousing has rapidly evolved from clipboards to cloud-based Warehouse Management Systems (WMS). While this drives efficiency, it expands the attack surface. Threat actors such as DragonForce and RansomHub are no longer just “big game hunting”; they are targeting the critical dependencies that keep supply chains moving.
As a result, we are seeing a shift in tactics that every broker and risk manager needs to understand:
- Third-Party Vulnerability: It’s not just your network; it’s your vendors. The recent exploitation of zero-day vulnerabilities in VeraCore software and Automatic Tank Gauge (ATG) systems shows that a single software flaw can cascade through hundreds of distributors.
- The “Double Extortion” of Time: For logistics, downtime is deadly. Ransomware groups know that perishable goods (like the chilled foods at Peter Green) cannot wait for IT to restore backups. They apply pressure by threatening both data leaks and physical spoilage.
- Legacy Hardware Risks: Many US and UK warehouses run on operational technology (OT) that was never designed for the internet. When these systems are connected to the web for remote maintenance, they become open doors for groups like XE Group.
Less “Reactive”, More “Resilient”
For brokers, the conversation with warehousing clients needs to move beyond the basics like “Do you have a firewall?” to “Do you know how resilient is your supply chain?”
In my time underwriting tech and cyber risks across the US and London markets, I’ve seen that the firms who recover fastest are those who treat cyber risk like physical safety – embedded in daily operations.
Here is how to turn complex risks into manageable choices:
- Quantify the Invisible: You wouldn’t insure a fleet without knowing the drivers. Why insure a network without knowing the vulnerabilities? Our Cowbell Factors provide a continuous, real-time assessment of a business’s risk profile, flagging issues like exposed RDP ports or unpatched software before an attacker finds them.
- Vendor Due Diligence: We are seeing breaches from third-party vendors double year-over-year. We encourage policyholders to demand the same security standards from their software providers as they do from their physical security teams.
- Speed as a Defense: When an incident occurs, speed is the best inventory. Our in-house claims team, led in the UK by Kirsten Maley, focuses on rapid containment to minimize business interruption. We don’t just pay the claim; we help you get the trucks moving again.
Clarity in the Noise
We know that for many SMEs in the warehousing sector, cyber insurance can feel like another cost center. But in a world where a single click can freeze a fleet, it is a critical asset.
Be sure to select a partner that makes you stronger. Whether you are a broker in London looking to place a complex logistics risk, or a warehouse operator in the Midwest worried about your WMS security, the goal is simple: provide quiet assurance that comes from systems designed to protect you.
Digital risks are inevitable, but operational paralysis is not. Let’s keep the supply chain secure, resilient, and always moving forward.
