The Need for Contractors to Carry Cyber Liability Insurance
Posted on: March 16, 2016 by Javier iSure
The looming threats of cyber exposures have increased drastically over the last few years. Many companies don’t understand the true risk of going without this protection. However, the truth is, any company that stores and processes information digitally is at risk and are liable for any ensuing damages. Unfortunately, contractors are no exception. While many contractors may feel like they are not as susceptible as other industries, this couldn’t be further from the truth. As we take a closer look at the exposures for this industry, ensure you are protected with a Miami Cyber Liability for Contractors policy.
You may be thinking, I’m in the construction industry, why would I need this coverage? However, if you store data in any cloud-based databases, if you process payments via credit cards, or you keep confidential information on site (whether digital or hard copy), you have cyber liability exposures.
Even if your company doesn’t accept credit cards as payment, there are still exposures from processing checks. Especially if your employees use laptops in the field, equipped with client information, this creates more cyber liability risk. Bear in mind that if this information was stolen, HIPAA violations would also come into play.
While this may seem like a new and unfamiliar policy, the effects of a data breach can be devastating. Especially for smaller businesses that don’t have the capital to fund litigation and pay out potential damage claims, this coverage is essential.
To put it into perspective, Constructor Magazine states that there were over 117,000 cyber-attacks per day in 2014; that’s up nearly 50 percent from the previous year. Further, at that rate there have already been 40 cyber-attacks in the time it’s taken you to read this blog so far. As the average cost of these breaches has exceeded the million-dollar mark, this is a necessity.
It is also important to note that general liability coverage, which is required for businesses, does not extend protection for cyber exposures. It is critical to discuss the limits of your policies with your insurance professional to ensure your contracting business is adequately protected.
At iSure Brokers, we have a unique understanding of the risk exposures that contractors face. From cyber exposures to environmental pollution, we have all the protection your business needs to thrive. For more information, contact us today at (855) 381-6123.