As published in Toledo Business Journal- October 1, 2019

Tweet

Deciphering the Difference Between Cyber Insurance and Crime Insurance

 

by Dale Kaprosy

Stories of cyberattacks targeting personal data and information are in the news daily, and the construction industry is not immune. With adaptation of web-based and remote access software management applications, the industry has become more efficient but also more vulnerable to increasingly aggressive hackers and cyber criminals.

Notably, Risk & Insurance magazine reported in a Forrester survey that more than 75% of respondents in the construction, engineering and infrastructure industries had experienced a cyber incident within the last 12 months.

Why Are Construction Firms Vulnerable?

They possess important client information such as banking and other sensitive financial information. Also, construction firms keep an array of valuable business-related information and data that cyber criminals and hackers want, including blueprints and schematics, architectural drawings/specifications, and intellectual property. Like any business, they can be targeted by ransomware and email phishing efforts to gain access to computer and email networks, and employee and subcontractor personal and financial information.

True Costs

Inconvenience, stress, the loss of information, sense of security and money are just some issues for victims of hacking and cybercrime. According to safeatlast, a security review company, the average cost of a ransomware attack on a company is $133,000. This can include an array of recovery-related services including legal, IT contractors to recover lost and corrupted data, credit agency protection and lost production and opportunity time for employees. Ransomware is now behind 56% of malware attacks.

The Oswald Solution

Construction companies can protect themselves by working with Oswald to review both their cyber and crime insurance coverages to ensure they are protected. Oswald offers a full suite of coverages for companies and budgets both big and small.

Businesses should also have their internal IT staff or contractors perform an audit of their antivirus and computer security software and invest in employee training on how to avoid email phishing scams.

Yes, the proactive investment of resources and time can be significant, but the cost of being reactive is far greater.

---

Note: This communication is for informational purposes only. Although every reasonable effort is made to present current and accurate information, Oswald makes no guarantees of any kind and cannot be held liable for any outdated or incorrect information.