Construction sites provide a golden opportunity for cyberspace mischief makers and thieves alike. Contractors and subcontractors share large datasets including drawings, submittals, photographs and other files where viruses and spyware can hide.
If a site offers open Wi‑Fi, hackers or disgruntled workers can gain easy access to others' computers on the same network.
Even with common defenses—firewalls, anti‑virus software and passwords—many states hold businesses strictly responsible for protecting sensitive data. Small subcontractors often keep employee personal identification on site laptops, which increases exposure.
Costs of a breach
- Public relations — a nightmare
- Forensic analysis — determine the extent, cause and source of the breach
- Revenue loss
- Business disruption — can you continue to build or plan securely
- Legal — defense costs
- Notification to any party potentially affected
The cost to rectify these factors can be substantial, often estimated around $200 per record. According to Travelers, average claims for large companies can reach into the millions.
Don't assume your business is too small to be targeted. Over one quarter of attacks affect companies with fewer than one hundred employees, and jobsite laptops are often a goldmine of personal data.
Consider using dedicated computers for shared jobsite communications that do not store personal or company-sensitive information.
Coverage details
- Network and information security liability
- Communications and media liability
- Regulatory defense expenses, which can help pay fines and penalties
Cyber liability can be purchased as an add‑on to a package policy or as a standalone policy. This coverage is an important part of your risk management plan, particularly when sharing massive data with other stakeholders; see Construction risks, digital tools, project diversification, IP and liability for related considerations.
Buy Cyber Liability coverage and learn more about options for contractors at Contractor and Cyber Liability Insurance.
Cyber breaches are becoming more frequent and are increasing year over year. A single claim can threaten a company's financial stability, so use every avoidance and risk management technique to reduce exposure, then insure to avoid catastrophe. If you need help evaluating options, talk to your agent.
Frequently Asked Questions
What types of data make a construction site a target?
Personal employee records, contract documents, drawings and financial files are common targets because they contain valuable personal and business information.
Can small subcontractors get cyber liability coverage?
Yes, many insurers offer cyber liability as an add‑on or standalone policy suitable for small businesses and subcontractors.
What immediate steps should I take after a suspected breach?
Isolate affected systems, preserve logs, engage forensic specialists and notify any required parties under applicable laws or policies.
Does cyber insurance cover regulatory fines?
Many policies include regulatory defense expenses that can help pay fines and penalties, but coverage varies by policy and jurisdiction.