How to Protect Your Construction Company from a Cyberattack

In today’s rapidly evolving digital landscape, the construction industry faces increasing exposure to cyber risks. Data breaches, ransomware attacks, and phishing scams have become common threats, highlighting the importance of cyber insurance with resolution services for construction companies. These risks can have severe consequences, including financial losses, reputational damage, and operational disruption.

Read the article below to explore the critical role of cyber insurance in safeguarding your construction company and insights from Rachel Pinsonneault, commercial staff underwriter with Central Insurance, to help your business stay protected.

Rising Cyberattacks in Construction

Cybercriminals increasingly target construction companies due to the sensitive data they handle, such as project plans, financial records, and customer contracts. Pinsonneault emphasized three major risks: data breaches, social engineering, and ransomware attacks.

• Data Breaches: Data breaches occur when unauthorized parties access sensitive corporate information, such as customer records, intellectual property, or finances.
  
• Social Engineering: In a social engineering attack, cybercriminals pose as trusted organizations or familiar contacts to deceive victims. Phishing scams are the most common type of social engineering attack. They typically take the form of an email that looks as if it is from a legitimate source.
  
• Ransomware Attacks: These attacks lock companies out of their systems and demand a ransom for access. Even when the ransom is paid, recovery is not guaranteed, leaving businesses vulnerable and operations paralyzed.

Did you know? In recent years, cloud-based email breaches have cost U.S. businesses more than $2 billion.

Best Practices for Cybersecurity in Construction

Taking a proactive stance on cybersecurity is crucial, including developing a strong incident response plan and educating employees on best practices to minimize human error—often the weakest link in security. Strengthening security in construction with multiple protective layers, such as antivirus software, multi-factor authentication, and regular data backups, can greatly reduce risks like unauthorized access and data breaches.

Pinsonneault emphasizes that businesses can mitigate many cyber incidents with these recommendations:

• Employee Training: Regularly train staff to recognize phishing attempts and follow best practices for data security.
  
• System Updates: Ensure software and systems are updated to address vulnerabilities.
  
• Access Controls: Limit access to sensitive data based on roles and responsibilities.
  
• Backups: Perform weekly backups of critical data, storing them in secure locations. 
  
• Data Encryption: Ensure data is encrypted for sensitive documents and files.
  
• Virtual Private Network(VPNs): Ensure VPN is used for remote access to company systems.
  
• Secure Device Handling: Ensure mobile devices and laptops are locked when not in use.
  
• Third-Party Risk Management: Ensure risk assessment is conducted for subcontractors, vendors, and suppliers who access company systems.

Did You Know: Central is proud to have an AM Best rating of “A” Excellent.

Cyber Insurance with Resolution Services Bridge the Gap

The construction industry’s reliance on mobile tools and smart devices makes cybersecurity a critical concern, as the loss of data such as site plans, contracts, and financial records can bring operations to a halt. Cyber insurance with resolution services acts as a critical line of defense, providing financial and operational support in the event of a cyberattack incident.

Central is proud to partner with Cyberscout, a leader in comprehensive cyber protection, to provide Cyber Suite coverage. Cyber Suite is comprehensive coverage with multiple layers of insurance defense against the complex, ever-evolving cyber risks your business faces.

For construction companies, Cyber Suite offers:

1. Incident Response: Immediate access to experts specializing in ransomware negotiations, system recovery, and data reconstruction.
   
2. Financial Coverage: Compensation for business income loss, extra expenses, and costs associated with system restoration.
   
3. Liability Protection: Coverage for lawsuits arising from data breaches or system failures affecting third parties.
   

Pinsonneault highlighted the importance of proactive risk mitigation but acknowledged that no system is entirely foolproof. Cyber insurance with resolution services bridges the gap, ensuring construction companies like yours can recover and continue operations after an attack.

Learn More: Does Errors & Omissions (E&O) Cover Cyber?

Protect From Cyberattacks with the Right Partner

Working with a trusted insurance provider like Central that offers Cyber Suite coverage provides significant advantages, particularly for construction companies managing complex operations. These include:

• Regulatory Compliance: Coverage for fines and penalties related to data breaches ensures compliance with legal requirements.
  
• Enhanced Trust: Demonstrating robust cybersecurity measures reassures clients and partners, strengthening business relationships.
  
• Operational Continuity: Financial support for business income loss and system recovery minimizes downtime and keeps projects on track.
  

Pinsonneault also noted the growing trend of contracts requiring cyber coverage, which means you’ll need to meet these requirements to secure projects and maintain trust with stakeholders.

Partnering with a reliable cyber insurance provider that offers incident resolution services ensures access to expert support and comprehensive coverage. By combining best practices with robust insurance solutions, businesses can mitigate risks and focus on growth.

To ensure your company is prepared to face the challenges of the digital age with the right tools and strategies in place, contact your local, independent Central agent.