Like all modern businesses, construction firms depend on electronic data, including contracts and credit card numbers. Emails contain potentially sensitive information, cruising the internet can leave you vulnerable to viruses, and new technologies mean new opportunities for cybercriminals to steal information or make trouble. From mom-and-pop companies to large corporations, the threat of damages from cybercrime is as real as that of physical crime.
Damage from cybercrime, however, is far more extensive – and expensive. According to the U.S. National Cyber Security Alliance, 60 percent of small businesses fail after a cyberattack.
Cyberinsurance covers a business’s liability for a data breach that results in the private information of the company or its clients being exposed or stolen by a hacker. While this insurance cannot prevent cybercrime from happening, it covers many of the expenses.
Who needs cyberinsurance?
It’s easy to see the headlines about data breaches for big corporations and think your construction business is too small for hackers to bother with. In truth, 30 percent of all data breaches happen to companies with fewer than 250 employees, and another 31 percent to companies with fewer than 2,500 employees. If you store sensitive information, such as Social Security numbers, credit card information or proprietary company data like patents, then you may want to consider cyberinsurance.
Is cyberinsurance worth the cost? Consider a 2015 study that determined the cost of a data breach runs about $200 per exposed account. The costs include notifying your customers who may have had their data exposed, making restitution and putting in new defenses. The Ponemon Institute study suggests that the average cost of a data breach is $6 million, but keep in mind that includes attacks on major corporations as well as small businesses.
These damages are not covered by standard liability and property-casualty policies, Read More Here