Does Your Business REALLY Need Cyber Liability Insurance?
In the 21st century every business in the Construction Industry should carry a cyber liability policy.
Did you hear about the information leak a few weeks ago?
How about the data breach the other day?
The fact is we could have asked you these exact questions on any average day in the last 10 years.
….And you would have likely answered yes.
Unfortunately, businesses are being attacked and successfully breached on a regular basis.
And, as technology continues to grow, so does your business’s exposure.
So, it is not a matter of if there will be a cyber attack.
But a matter of when.
While cyber liability insurance won’t shield you from cyber attacks, it can protect you financially if a breach were to happen.
What Does Cyber Liability Insurance Cover?
To fight back against the rise of data breaches, governments have increased legislation. Businesses are held responsible for safekeeping of their customer’s information.
If a data breach happens you must notify everyone that is involved.
The contractor will be faced with several costs. These include security fixes for your system, identity theft protection for your affected customers, and protection from being sued by affected clients and employees.
Even though most construction firms do not sell products online they still are at risk of a breach.
If you store any data electronically or even use basic email you are exposed. Many breaches happen through unapproved employee access and hardware theft.
Intellectual Property Rights
How your company is projecting itself online leaves you exposed in several ways.
From your website that shows the services you provide. To the blog posts with valuable information for your clients. Even the quick social media posts informing the public about your services, all leave you exposed.
These exposures can include libel, copyright or trademark infringement, and defamation.
Damages to a third-party system
If you or one of your employees sends an email from your server that contains a virus that crashes the system of a customer. You could be held liable for damages relating to the crash.
These damages can include costs such as the cost of getting the system back up and running, as well as the loss of profits.
If your company distributes software, your exposure in this area can be substantial. If a client who purchased your software experiences a failure that causes a loss, you could be on the hook for the damages.
If your system is damaged by a natural disaster, vandalism, fire, or other physical force, this may create a bit of a hassle for your business.
However, these items are often not very difficult to replace and are covered under your business liability policy.
What isn’t covered under the business liability policy is the data stored on your system.
Many websites are taken down or held captive by hackers. Hackers can access your personal data as well as your clients. Often, they demand a ransom for the return of your webpage and data.
Along with the cost of the ransom, cyber extortion may result in a loss of revenue as well as the costs of rebuilding your webpage.
If your business requires the use of computer systems a cyber attack can be devastating.
Having services such as email, online forms, and other ways to transmit data go down can result in loss of revenue. Time that you would have normally spent on operating your business is gone to waste.
Business interruption has become increasingly common as denial of service attacks by hackers have risen in recent years. Hackers block access to your website by rerouting traffic to a different site or bombarding your business’s server with requests.
What are the Benefits of Cyber Liability Insurance?
Cyber liability insurance covers technologies of the modern world. It is designed to cover what a normal business liability policy won’t.
The level of coverage your business needs is based on your individual operations and can vary depending on your range of exposure.
MRG can tailor a policy to your specific business operations.
As your business grows, make sure your cyber liability coverage grows with it.
MRG is a Construction Industry Risk Specialist and can help you analyze your needs and make the right coverage decisions to protect your operations from unnecessary risk.
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Or Call us today for a consultation over the phone at (1-555-5555)