The Issue. The likelihood of suffering a cyber-related loss is growing and such losses can be incredibly expensive and disruptive to a business. Cyber-attacks, cyber-theft, and other computer security incidents are being reported with increasing frequency, across all industries, and the construction industry is not immune. Insurance coverage for cyber losses is a relatively new product and many of the policies on the market today did not even exist five years ago.

Why It’s Important. Experts in the field are fond of saying that it is not a question of whether your business will suffer a cyber-related loss, but when. It is critically important for construction industry participants to understand their cyber risks, and how to use insurance to protect against them.

Short Answer. Some cyber losses used to be covered under traditional liability or crime policies, but most of these policies now exclude such claims. Today, policyholders can purchase stand-alone policies, or add computer or cyber endorsements to their existing policies. The coverage provided by these products varies. For example some policies require an insured to enact certain precautionary measures and provide that there will be no coverage if the insured fails to follow its procedures. Some policies provide coverage for the dishonest acts of employees or agents, others do not. Because coverage depends largely on the language of your policy, it is important to work with a qualified professional to find he product that best fits your risk profile.

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