As construction firms rely more on technology to manage projects, a new risk is emerging for the industry: the cyber intrusion threat.
Much new construction machinery is computerized, and most design, engineering, and construction firms are using some form of cloud computing. They are also increasingly using electronic platforms to manage projects, which are ripe for cyberattacks:
- Multi-user platforms allow contractors, designers, and project owners to share data simultaneously.
- Technology-driven applications include integrated project delivery, building information modeling, estimating, and scheduling programs.
While these tools create efficiencies, the risk of intrusion increases when multiple parties have access to the project data. And if that data is compromised, it could force a halt in construction while you determine the extent of the breach.
Data at risk of exposure includes:
- Sensitive client data
- Confidential project information
- Proprietary data
- Subcontractor data or financials
- Employee data, including personally identifiable information.
The dangers
If cyber criminals gain access to construction data, they could:
- Seriously disrupt a project by destroying data servers and infrastructure or threatening people’s safety on-site.
- Infiltrate an owner’s design and security systems.
- Get their hands on your intellectual property or data that gives you a competitive edge.
- Use weaknesses in your system to infiltrate project partners’ and vendors’ IT networks.
Identifying weaknesses
It would help if you asked yourself these questions to identify deficiencies:
- Is your network secure, and are you confident it’s protecting your data?
- How much data do you have, and where is it stored?
- Do you encrypt your data on your or your employee’s mobile devices and laptops?
- Do outside vendors have access to sensitive information? Perform due diligence assessments before granting them access.
- Are you taking precautions to ensure that third parties are granted access on a need-to-know basis only?
- Do you have policies and safeguards to ensure shared information is not disseminated elsewhere?
- Are you training your staff in cyber security and malicious e-mails?
Cyber insurance
Most commercial insurance policies will not cover damages caused by data breaches, but cyber insurance will. Depending on the policy, it can cover losses from various cyber and electronic issues, including:
- Unauthorized access.
- Business interruption.
- Network damage by a virus, malware, or human error.
- Any state-mandated notification costs if personally identifiable information was exposed.
- Costs of regulatory penalties and compliance costs.
- Third-party security and privacy liability arises from the failure to protect confidential corporate information, including personally identifiable information.
- Costs associated with impaired access or denial-of-service attacks.
- IT forensics and expenses.
- Crisis management and public relations expenses.
- Loss of business income due to network interruptions.
- Cost of recovering systems and data.
- Cyber extortion loss.
BGES Group is one of New York, New Jersey, and Connecticut’s Construction Insurance Specialists representing 50+ companies, including all the BEST general & umbrella liability programs. We offer all the coverage needed, including property, builders’ risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers’ compensation, N.Y.S. disability, and group health. Our commitment to you goes beyond the policies we provide. We are always just a call, text, or email away, ready to assist you, even on weekends. We understand the importance of your business and are here to help you navigate any insurance challenges.
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