For many years insurers have shied away from IT risks that involve SCADA or PLC’s. SCADA is essentially a program run on a computer system aimed at monitoring, gathering and analysing real time data. An acronym for Supervisory Control and Data Acquisition, SCADA systems are used to monitor and control plant and equipment in a range of industries including manufacturing, energy transmission and distribution, communication systems, heating and ventilation, water and waste control and oil and gas. A SCADA system gathers information, for instance faults in a manufacturing process line, transfers the information back to a central hub, issuing an alert that a fault has occurred, analyses the error determining how critical, then relays this information to the end user. PLC, or Programmable Logic Controller is a digital computer that controls automation processes such as factory machinery, lighting and computer peripherals. Unlike the PC environment in an office, PLC’s are designed to withstand extreme temperatures, electrical noise, vibration and impact.
“Both SCADA and PLC are an integral part of Process Control Systems in many industries and it is essential to highlight the risk involved should these systems fail. It is equally important to ensure that these risks are properly understood and adequately covered by the insurer.” Rob Collyer, Brooklyn’s Professional Risks Underwriting Manager explains.
“At Brooklyn we see a wide variety of applications in which SCADA and PLC are used, from monitoring/controlling the air conditioning in small offices to systems that monitor/control conveyor belts in a manufacturing plant to complex systems monitoring/controlling the activity of waste water treatment plants.”
We encourage you to contact one of our Brooklyn IT Underwriters should your client require this cover.