Construction companies often work projects with significant financial transfers or technology-based project planning. This can leave companies vulnerable to various cyber-attacks such as a ransomware attack which locks users out of their device and used to extort money setting back the business financially.
Here are five reasons why your construction company should have cyber insurance:
- Large commercial contracts: When working on or competing for projects, you may have access to developer’s networks and internal processes. This kind of access can be exploited so it is critical a cyber policy is in place.
- Privacy liability: Sensitive client data can be collected from construction firms and contractors such as payment information, architectural plans, or possibly insight into a client’s internal network. If this information is lost, you are responsible for notifying the clients and could face fines or lawsuits.
- Business interruption: If you’re using technology to track your project or run operations, business interruption coverage is essential to your cyber policy. In the event of an interruption, there’s potential for loss of profit.
- Reputational harm: A data breach or cyber-attack may result in the loss of current clients and also future clients if they feel your firm is not properly protecting their information.
- Cybercrime: Any money transfer is a target for cyber criminals. A crime policy covers computer crime and funds transfer fraud (FTF) at full policy limit and often covers social engineering fraud (SEF) at a sublimit.
Construction companies have experienced significant changes to their cyber insurance over the last year, causing market disruptions and clarity on who the hackers are targeting. Check out our Cyber Playbook for more preventative measures to safeguard your networks
