The Importance of Cyber Insurance for Construction Companies

Construction companies have adopted technology quickly, but because of this, they are more susceptible to cyberattacks. According to NordLocker, construction is at the top of the list of industries targeted by cyberattacks, specifically ransomware. This can result in hundreds, if not thousands of dollars lost for construction companies; which is why many companies are investing in cyber insurance for construction projects.

Here are some reasons why you should invest in cyber insurance to protect your company.

Cyber Attacks

Unfortunately, it appears that cybercrime instances are rising. And while it might seem as if targeting a large corporation would provide hackers with the chance for the biggest return, in actuality, smaller companies are more susceptible to attack. The reason behind this is that large companies have the resources and capital to allocate funds to cybersecurity while smaller companies don’t.

Social engineering is also another form of cybercrime in construction. A hacker may pose as a seemingly trustworthy but unknown person, like a vendor, to gain access to company credentials. Phishing, or the use of fake emails or websites, is a great example of this. A hacker may impersonate another company or individual and send fraudulent emails to access information.

There are a couple of things you can do to help avoid cyber attacks like hiring cybersecurity specialists, training employees to recognize phishing, and automatically backup up your daily data. But ultimately, investing in something like cyber insurance would be better.

Cyber Insurance in Construction

Because of the rise in ransomware and cyber attacks in the industry, cyber insurance in construction is gaining popularity as a preemptive form of protection. Here are some other reasons why companies should consider cyber insurance:

1. The Rise of Cybercrime
   It’s a fact- cybercrime is on the rise. In fact, one in six construction companies reported a ransomware attack in 2020. Dealing with cyber attacks leaves you vulnerable to data and money loss. Safeguard against any potential loss by investing in cyber insurance for your construction company.
2. Project Delays
   The true price of cybercrime is the amount of time your business is held hostage. Nowadays, most companies rely on technology to function. Cyberattacks can halt projects and make it difficult to access important day-to-day information. As a result, the loss of business is something that could potentially drag on for days or even weeks.
3. Reputation
   Customers and contractors may hesitate to do business with you in the future if you have a data breach in your past. It signifies to clients that you are susceptible to cyberattacks and that therefore their data is at risk should they work with you. It doesn’t paint a strong or likable appearance for your company.
4. Liability Coverage
   Construction companies collect and store valuable information about their clients. By having cyber insurance in construction, companies can protect themselves from lawsuits or fines in the event of a ransomware attack. Not to mention, it brings peace of mind if your company ever becomes a victim of cyberattacks.

Companies spend money to protect physical assets. They must take the same steps to protect cyber assets too. Therefore, cyber insurance in construction is more important than ever.

A Reliable and Trusted Brand

U.S. Bridge works with companies all over the world to build long-lasting and easy-to-maintain bridges. We design our bridges with the latest innovations in mind. Our team brings engineering and manufacturing expertise to every project and safety in every way is important to us.

Ready to start your next project? Contact us today to learn more!