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While the Construction industry may be one of the last to adopt the use of emerging technologies, many contractors have been experimenting with the digital-age to make their jobs easier. As they begin to become more interconnected with the outside world through the use of computers, laptops, smartphones and “smart” construction equipment, contractors are becoming more vulnerable to cyber-attacks, greatly increasing the need for cyber insurance. Cybercriminals may target construction companies for a variety of reasons including industrial espionage, access to client information or simply for thievery. Unfortunately for construction companies, along with other industries that lag behind in cybersecurity, cybercriminals are very aware of the vulnerable industries, making attacks more likely in the future.

Not to mention, cybercriminals know the construction industry is a high-cash-flow business. Small and mid-sized businesses are often prime targets because they have the “it won’t happen to me” approach on cybersecurity, despite the fact that more than 50 percent of cyber-attacks are on small businesses. With the average breach cost nearly $4 million across all sectors, construction companies should not count themselves out of the equation. To help plan for and mitigate the risk of a cyber-attack, cyber insurance can serve as a means of protection on both the back-end to help cover the costs of a breach and also on the front end, as outside consultants can help bolster cybersecurity and work with employees to help raise awareness of vulnerabilities and the importance of good cybersecurity practices.

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