You're More of a Target Than You Think
Construction companies have become prime targets for cyber criminals. You handle employee financial data, client payment information, and bid documents with proprietary pricing. You can't afford extended downtime. You often have limited IT resources.
For hackers, that combination is attractive.
What Makes Contractors Vulnerable
Valuable Data
Employee Social Security numbers and banking information for payroll. Customer financial data and payment cards. Bid documents with competitive pricing. Project specifications that would interest competitors. Subcontractor and vendor information.
Operational Pressure
Tight project deadlines mean you can't afford systems being down. High costs of construction delays create pressure to pay ransoms. Multiple connected parties create multiple attack vectors.
Security Gaps
Limited IT resources compared to larger organizations. Focus on physical site security rather than digital protection. Multiple access points across job sites and offices. Older systems and equipment that aren't regularly updated.
Types of Threats
Ransomware
Criminals encrypt your files and demand payment to unlock them. Project management software becomes inaccessible. Estimating and bidding systems freeze. Payroll and accounting can't function.
A mid-sized general contractor we know was hit during a $5 million project. With schedules and change orders locked, they faced $15,000 daily in delay costs. The $75,000 ransom seemed cheap until they discovered the attackers left backdoors for future access.
Business Email Compromise
Attackers monitor your email, then impersonate executives or vendors. Fake invoices with updated bank details redirect payments. Urgent wire transfer requests from apparent executives catch employees off guard. These schemes have cost construction companies millions.
Data Breaches
Unauthorized access to employee and customer information creates notification obligations, potential lawsuits, and regulatory exposure.
What Cyber Insurance Covers
Your Direct Losses
Forensic investigation to determine what happened. Business interruption from system downtime. Data restoration costs. Ransom payments where legal and appropriate.
Claims Against You
Privacy liability for exposed personal information. Network security liability if your breach spreads to others. Regulatory defense and fines.
Response Services
24/7 incident hotlines. Breach coaches to manage response. Forensic investigators. Legal counsel for compliance. PR specialists for communication.
Coverage Amounts
| Annual Revenue | Suggested Minimum | |----------------|-------------------| | Under $1M | $500,000 to $1M | | $1M to $5M | $1M to $2M | | $5M to $10M | $2M to $5M | | Over $10M | $5M or more |
What Cyber Insurance Costs
Coverage has become more affordable and accessible.
| Coverage Amount | Typical Annual Premium | |-----------------|----------------------| | $500,000 | $1,000 to $2,500 | | $1,000,000 | $1,500 to $4,000 | | $2,000,000 | $2,500 to $6,000 |
Rates vary based on revenue, security controls, and risk factors.
Basic Protection Measures
Multi-Factor Authentication
The single most effective control. Require it for email, financial systems, project management software, and VPN connections.
Employee Training
Regular phishing awareness training. Password hygiene education. Social engineering recognition. Incident reporting procedures.
Backup Strategy
Three copies of data. Two different storage types. One copy offsite and air-gapped from your network.
When You Get Attacked
Immediate Steps
Don't panic and don't pay immediately. Contact your cyber insurance carrier first. Isolate affected systems without turning off computers. Document everything.
Your carrier has negotiators and resources. They handle these situations regularly and can often resolve them better than you can alone.
Common Questions
Does general liability cover cyber incidents?
No. Standard GL policies exclude cyber events. Some have limited sub-limits, but dedicated cyber coverage is essential.
My business is too small to be a target, right?
Small businesses are actually preferred targets. They have valuable data but weaker security. Nearly half of cyber attacks target small businesses.
What if I already have good IT security?
Security helps with pricing and may prevent attacks, but no security is perfect. Insurance transfers the remaining risk when prevention fails.