Cyberattacks on connected fleets create new risks for lenders, insurers

As commercial fleets become “computers on wheels,” rising cyber incidents are driving new insurance products and reshaping equipment finance risk. 

Specialty insurer HSB, part of Munich ReGroup, has introduced cyber coverage tailored to commercial auto as connected vehicles become more vulnerable to attacks that can disrupt operations, impair collateral and pressure borrower cash flows, Eric Hendricksen, product manager lead for HSB, told Equipment Finance News. 

“The introduction of cyber coverage for commercial auto was driven by a market need, as traditional auto policies often failed to affirmatively address coverage for cyberattacks,” he said. “This led to the development of a product that combines traditional cyber policy elements, such as coverage for extortion and system restoration, with specific elements tailored to the auto sector, including transportation costs and loss of use.” 

While the adoption of telematics, electronic logging devices and fleet management systems expands fleet efficiency, it also increases exposure risks, according to cybersecurity software provider Upstream Security’s 2026 Automotive & Smart Mobility Global Cybersecurity report. 

Modern vehicles rely on software-driven systems and APIs that process billions of transactions monthly, enabling remote access, ignition and location tracking, according to the report. 

Rising threats target fleet operations 

With the technology in connected fleets evolving, the vulnerabilities for commercial vehicles also continue to evolve, with common threats including ransomware, Controller Area Network bus hacking, malware from connected devices and weaknesses in over-the-air updates, Hendrickson said. 

“A common misconception among fleet operators and lenders is that connected vehicles are not as vulnerable to cyber threats as computers in a home office, when they are essentially computers on wheels that can be targeted by hackers.”

— Eric Hendricksen, product manager lead, HSB

Cyber incidents continued to increase in both frequency and scale in 2025, including 494 automotive incidents, up 21% YoY, according to the Upstream report. Sixty-one percent of them were in the high or massive classification, up 1.3 percentage points YoY, meaning they had the potential to affect more than 1,000, and potentially millions of vehicles. 

Data and privacy breaches accounted for 68% of incidents, up eight percentage points YoY,, according to the report. Vulnerabilities are also rising, with 450 automotive common vulnerabilities and exposures in 2025, up from 422 in 2024. 

Implications for lenders and credit risk 

For equipment finance providers, cyber risk also represents credit risk, with credit rating agency Moody’s attributing 28 credit rating actions across sectors directly to cyberattacks, underscoring their financial impact, according to a Jan. 23 Moody’s release. Downtime can reduce borrower revenue and impair repayment capacity, while large-scale incidents can affect multiple assets simultaneously. 

A typical claim may involve a truck sidelined by a cyberattack, requiring towing, replacement rentals and temporary systems to restore operations, Hendricksen said. 

“The biggest drivers of claims tend to be the loss of business income, system restoration and rental costs.”

—  Eric Hendricksen, product manager lead, HSB

Insurers and operators continue to respond with increased cybersecurity investment and broader adoption of standalone cyber coverage, according to Moody’s. 

“The insurance industry must continue to adapt to these emerging risks and provide effective coverage and risk management solutions to protect commercial vehicle fleets,” Hendrickson said. 

The fourth annual Equipment Finance Connect, a crucial industry event for equipment lenders and dealers, takes place at the C. Baldwin Hotel in Houston from May 18-19. Learn more about the event and register here by April 3 for early-bird savings.