The Hidden Construction Industry Threat

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.

BGES Group are Workers’ Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being canceled, losses causing difficulty getting coverage, in the middle of an audit dispute, misclassified payrolls, or whatever your issue. We can help!  We have special programs for Auto Services, Contractors (especially in New York), Limousine Services, logistics companies, Manufacturers, Recyclers, and Truckers; we can help ANY tri-state business owner.  We are considered “Preferred Agents” for this one program that, if we can get you into, their pricing is excellent, offers long-term coverage stability, and can cover multi-state operations. The program takes the hassle out of doing annual audits, too. 

If you would like to speak with us, call Gary Wallach at 914-806-5853, click here to email, or click here to visit our website.

Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

email: bgesgroup@gmail.com

website: http://www.bgesgroup.com

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