The construction industry often has complex projects that involve different information and financial exchanges between partners, subcontractors, regulators, suppliers, software systems and more. Most construction firms don’t have large IT departments or little experience managing information security. This combination is a sweet spot for hackers. Here are five reasons why construction companies need cyber insurance.
- Large Commercial Contracts
Did you know an HVAC contractor was the reason for the 2013 Target breach that affected 41 million consumers? If you’re performing work for large commercial organizations, you may have access to their networks, systems and internal processes. This access can be exploited. When competing for a large commercial contract, a cyber policy is crucial.
If you’re performing any transactions that involve wiring money to a third-party, you’re a target for cybercriminals. Social engineering is happening in just about every industry and typical crime policies do not cover this exposure. You’ll want to make sure you have a cyber policy in place that has high limits for funds transfer coverage.
- Cyber & Privacy Liability
Construction firms and contractors collect sensitive information about their clients and ongoing projects. This data can include personally identifiable information, payment information, architectural plans, and even insight into a client’s internal network. If this information is lost, you’re responsible for notifying the affected individuals and may face lawsuits, fines and incredibly high forensics costs.
- Business Interruption
If your construction firm is relying on technology to run day-to-day operations, you need adequate Business Interruption coverage in your cyber policy. Are you using a laptop to track the progress of your job or strategically plan next steps and communicate with other individuals? If you can’t access this information, there’s potential for a serious loss of profit.
- Reputational Harm
If your customers or partners feel your construction firm is not adequately protecting their financial assets and information, you could lose their business. A data breach or cyberattack may not only result in the loss of current clients, but also future clients. Reach out to your insurance broker for a cyber policy that provides you with full limits for reputational harm in the event you get hacked.
MMA can help
Cyberattacks are likely to increase to take full advantage of the COVID-19 pandemic given that it has forced much of the world onto the internet.
MMA takes a comprehensive approach to helping you manage cyber risk, taking your entire enterprise
MMA provides proprietary solutions and best-in-class advisory services to help you understand your cyber risk, vulnerability and threats; measure your exposure with customized tools; and manage your cyber risk using our tailored insurance solutions, education and coaching programs, risk mitigation and loss prevention tools and response planning and performance improvement reviews.
To learn more, talk with your Marsh & McLennan Agency representative.