Cyber Risks in the Construction Industry
As the construction industry embraces digital tools, from project management platforms to smartphones, their exposure to cyber threats grows significantly. In recent years, the construction industry has been one of the most heavily targeted industries for cyberattacks. As of 2021, studies indicated that it was the third most targeted industry. This high volume of cyberattacks is due to the lack of protection and insurance policies put in place.
At Ferrera Insurance Agency, we strive to protect construction clients in an evolving risk landscape and offer coverage that meets their modern needs.
Why the Construction Industry is a Growing Target for Cyber Attacks
Construction companies may not seem like prime cyber targets, but attackers increasingly view them as vulnerable for various reasons below.
- Valuable Data: Construction firms often handle sensitive blueprints, employee data, and vendor payment details.
- Decentralized Operations: Multiple worksites, contractors, and third-party vendors create more entry points for attackers.
- Low Cybersecurity Maturity: Many firms lack dedicated IT teams or advanced cybersecurity practices.
- Temporary Workforce: Pervasive usage of contractors, subcontractors, temporary workers and third parties can reduce the organization’s level of security control while increasing potential exposures.
- Lack of Cyber Regulatory Focus: Historically, the construction industry has not been subject to mandatory cyber regulatory requirements, making cybersecurity less of a priority.
Common Cyber Threats
- Ransomware Attacks
Cybercriminals encrypt files and demand payment to restore access. For construction projects on tight deadlines, delays caused by ransomware can cost millions.
- Phishing and Business Email Compromise (BEC)
Fraudulent emails targeting payroll or payment instructions are increasingly common. Construction’s high volume of invoicing makes for an extremely vulnerable industry.
- Data Breaches
Employee records, project designs, and client data are valuable targets. Breaches can lead to reputational damage and regulatory penalties.
- IoT and Smart Equipment Vulnerabilities
As job sites become smarter with IoT sensors, drones, and connected equipment, they open new vectors for attack, especially if not properly secured.
Building a Better Tomorrow
Cyber threats are no longer limited to tech companies or financial institutions. The construction sector’s digital transformation means cyber insurance is no longer optional—it’s essential. Our team at Ferrera Insurance specializes in cyber coverage tailored to the construction industry.
- Risk Assessments: Offer cyber risk evaluations.
- Education & Resources: Provide materials to help construction firms train staff and implement basic cybersecurity practices.
- Policy Bundling: Combine cyber insurance with existing commercial general liability or contractor’s E&O for more comprehensive protection.
Our team is ready to help you build a solid foundation of protection against cyber threats. Contact us today at (847) 802-8408 to schedule a consultation.