The Sources of Cyber Risk in the Construction Industry

Construction is one of the few industries today that is not data production-driven. However, many factors have exposed construction companies to a host of new threats, making the need for cybersecurity a critical risk management consideration.

The belief among construction companies that they aren’t a target, only makes the industry easier prey for attackers. Construction companies are not exempt from the dangers of cybercrime. The increased dependency on technology increases risk exposure. Companies can protect themselves with construction liability insurance and mitigate risks by developing security and cyber breach plans.

Access to Confidential Client Information

Do you have access to clients’ confidential information? Compromised intellectual property such as building specifications and architectural drawings can provide a roadmap for criminals to gain access to valuable personally identifiable information, including financial accounts and employee data. If you have access to this type of confidential information, you’re vulnerable to phishing, ransomware, and other common forms of cyber-attacks.

Business Interruption Exposure

Cyber attacks can result in costly business interruptions for construction companies. A delay in construction projects can be quite expensive. This potential disruption must be built into a risk management plan. If a breach occurs, construction companies should have a contingency plan in place to make sure projects are not delayed and if so, they could quickly bounce back and run smoothly.

Mobile Dependency

The construction industry poses a unique cyber security challenge in that it is highly decentralized. Those involved in construction projects who are highly dependent on mobile devices and laptops, offer multiple access points to networks and create another layer of vulnerable exposure. Valuable technology such as laptops is often stored on job sites in unsecured trailers, making this information an easy target for thieves.

Increased Reliance on Technology

The construction industry is increasingly adopting new technologies to improve safety and efficiency. Wearables and drones provide real-time monitoring and data collection, while virtual reality can create simulations of building designs, allowing those with malicious intent potential access to valuable information.

Third Party Liability

As third-party vendors to clients, who also use third party suppliers and subcontractors themselves, construction companies are exposed to stakeholder breach liability risk on all sides. Contractors could be held liable for the damages customers sustained; emphasizing the importance of construction liability insurance.

Claims Findings

Claims arising out of breaches are a result of various types of attacks including ransomware, phishing and social engineering where criminals send emails pretending to be employees or trusted business partners in efforts to obtain confidential information or steal money. These attacks can be from criminals with a pure profit motive, competitors attempting to steal information, or criminals seeking to create chaos for other reasons.

Construction companies can stay focused on completing projects with construction liability insurance, which offers proactive risk management support. Working with an insurance agent who has expertise in unique risks posed to this industry will ensure you are adequately covered.

 

About Daniels Insurance, Inc.

At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.