February 02, 2026 | Cyber Security
From Exposure to Assurance: Why Cyber Insurance Matters for the Logistics Industry
By: Alexandra Theunissen, Senior Strategic Relationship Manager
Logistics companies are built to keep freight moving on time, with precision and minimal disruption. Yet in conversations I have every day with logistics service providers, it’s clear that cyber incidents now pose one of the most significant threats to that continuity. The concern is no longer limited to data security alone, it extends to operational downtime, misdirected funds, disrupted customer visibility, and the challenge of recovering quickly when critical systems fail.
As a Senior Strategic Relationship Manager at Roanoke, I work closely with organizations that rely on interconnected digital systems to operate efficiently. Across the industry, I’m seeing a growing recognition that cyber risk must be addressed as part of broader operational risk management. This article explores why logistics companies are uniquely exposed, what cyber insurance is designed to address, and how it can help support resilience in an environment where digital disruption is no longer hypothetical.
Logistics companies have embraced automation, cloud-based platforms, AI-enabled tools, and interconnected digital systems to meet escalating customer expectations. This digital transformation delivers efficiency and visibility, but it also opens the door to cyber risk.
Ransomware, business email compromise, data theft, and supply chain intrusions now target the logistics sector at unprecedented levels. The consequences are potentially severe. A single attack can halt operations, misdirect customer funds, compromise sensitive data, trigger regulatory exposure, and damage long-standing client relationships.
Cyber insurance helps logistics service providers navigate this evolving risk landscape. While it does not replace IT security controls, cyber insurance complements those efforts by covering the financial, legal, and operational fallout when an incident occurs. This white paper explains why logistics companies are uniquely exposed, what cyber insurance covers, and how it supports long-term resilience.
The Growing Cyber Threat in Logistics
The logistics industry moves freight. It also moves data, and cybercriminals know it.
Freight forwarders, customs brokers, and property brokers all rely on interconnected systems, including TMS platforms, portals, shared APIs, digital documents, electronic customer communication, and cloud-hosted operational tools. This interdependence creates efficiency but also amplifies cyber risk.
Key Threats Affecting Logistics Providers
- Ransomware: Encrypts data and stops operations until a ransom is paid.
- Phishing & Business Email Compromise (BEC): Criminals impersonate trusted contacts to redirect customer payments or obtain credentials.
- Data Breaches: Expose client records, customs documentation, financial details, or personal information.
- Vendor Compromise: Attackers exploit third-party platforms or shared credentials to access logistics systems.
Attack Volume Is Surging
A 2025 Trellix report recorded a 136% increase in advanced persistent threat (APT) activity between October 2024 and March 2025, with transportation and logistics emerging as top targets. Russian-linked APT29 accounted for more than half of these attacks, often probing logistics networks for weak points to disrupt supply chains or steal operational data.¹
SecureWorld reports a 40% rise in supply-chain–related breaches over the last two years, driven by attackers using connected suppliers and logistics partners as entry points.²
Real-World Logistics Disruptions
- A global forwarder had its customer portal disabled for days following a cyberattack, delaying shipments and halting customer visibility.³
- A logistics company in the UK suffered a ransomware event that shut down operations completely and ultimately forced liquidation.⁴
- Anonymized Example: A mid-sized U.S. forwarder experienced a BEC incident in which a criminal posed as a valid shipper and instructed accounting to reroute $140,000 in freight payments. Operations continued, but the financial hit was severe and uninsured.
Small and mid-sized logistics companies are especially at risk. They often handle the same sensitive data as global operators but without extensive cybersecurity infrastructure. And because attackers frequently target the most vulnerable link in a supply chain, smaller firms are increasingly at risk.
What Cyber Insurance Covers
Cyber insurance is designed to help companies respond to and recover from cyberattacks. While policies vary, the following areas typically represent core components of coverage for logistics service providers:
Data Loss & Restoration
Covers the recovery, restoration, or recreation of corrupted or stolen electronic data.
Business Interruption
Protects against lost income resulting from downtime caused by a cyber event. This coverage is especially valuable for companies operating time-sensitive freight movements.
Media Liability
Coverage for defamation, invasion of privacy, or copyright infringement stemming from a cyber incident.
Cyber Crime
May include reimbursement for losses from fraudulent instructions, social engineering, or unauthorized digital fund transfers.
Social Engineering
Covers losses due to employees being deceived into sharing sensitive information or transferring funds.
Crypto-Jacking
Addresses unauthorized use of systems to mine cryptocurrency.
Cyber Extortion
Provides coverage for the negotiation, response, and potential settlement of ransomware demands.
Data in Transit
Covers loss or theft of data that occurs during the physical transport of devices.
Why Cyber Insurance Matters for Logistics Providers
Cyber insurance is not just about paying financial losses; it’s about securing access to expert support. When a cyber incident occurs, logistics providers face more than financial consequences. They face operational paralysis, strained customer relationships, and regulatory obligations that require timely action.
With cyber insurance in place, companies typically gain access to:
Pre-Incident Services
- Vulnerability assessments
- Security best-practice guidance
- Employee training resources
- Recommendations to strengthen internal protocols
Post-Incident Support
- Crisis management and PR to mitigate reputational damage
- Digital forensics to determine the scope and source of the attack
- Legal guidance for regulatory notifications and potential claims
- Data restoration to resume operations quickly
- Customer notification services, if personal information was exposed
- Extortion advisors to navigate ransomware events safely
Without cyber insurance, logistics companies must source and pay for these services independently. Moreover, if the services are not in place before an incident occurs, the compromised company must source them at a time when every hour of downtime affects customer commitments.
Beyond Coverage: Cyber Risk Management for Logistics Providers
Cyber insurance is one part of a broader risk management strategy. A strong cyber posture reduces the likelihood and severity of incidents and may improve insurability.
Recommended Practices
- Maintain strong IT security controls (MFA, secure VPN, updated firewalls)
- Train staff on social engineering and BEC scams\
- Conduct regular tabletop exercises for incident response
- Evaluate vendor cybersecurity practices, especially software platforms
- Back up essential data off-network
- Document and test business continuity plans linked to supply chain obligations
Even with strong controls, no system is foolproof. Cyber insurance helps logistics providers recover more quickly and ensures the financial impact of an attack does not jeopardize long-term stability.
Common Misconceptions About Cyber Risk
“We have an IT provider. Why would we need cyber insurance?”
IT support reduces risk but cannot eliminate it. Cyber insurance covers financial, legal, and regulatory costs that fall outside IT service agreements.
“We’re too small to be a target.”
43% of cyberattacks target small and midsize businesses.⁵ Attackers view smaller logistics companies as doorways into larger supply chains.
“We don’t store sensitive data.”
Even without large stores of personal information, your systems—including TMS platforms, email networks, or customer portals—are essential to operations. If they go down, freight doesn’t move.
Strategic Recommendations for Logistics Providers
- Assess Your Digital Exposure: Map out where data lives, who touches it, and which platforms create upstream or downstream risk.
- Secure Tailored Coverage: Work with a broker who understands logistics risk and can place coverage that fits your operational realities. Generic cyber policies may not cover all your exposures.
- Integrate Security + Insurance: Cyber insurance is most effective when paired with strong preventive controls and tested operational processes.
Cyber risk is now a cost of doing business in the logistics industry. As systems become more interconnected and attackers more sophisticated, logistics service providers must protect not only their data but also their operational continuity, customer trust, and long-standing relationships.
Cyber insurance provides financial protection and access to specialized resources during a cyber event. Combined with strong cybersecurity practices, it helps companies move from exposure to assurance, strengthening resilience across increasingly digital supply chains.
Request a Cyber Risk Review
Roanoke can help logistics service providers understand their exposures, identify coverage gaps, and secure tailored cyber insurance solutions that support long-term operational resilience. Request a Cyber Risk Review today!
Sources
1. Trellix Cybersecurity Report, April 2025.
2. SecureWorld, 2024 Supply Chain Breach Analysis.
3. Public reporting on JAS Worldwide cyber incident, 2024.
4. Public reporting on KNP Logistics ransomware event, 2023.
5. TechTarget: SMB Cyberattack Statistics.
Disclaimer Any descriptions of coverage contained in this information sheet are meant to be general in nature and do not include nor are intended to include all of the actual terms, benefits, and limitations found in an insurance policy. The insurance policy and not this information sheet will form the contract between the parties thereto, and will govern in all cases.
