Half of contractors do not have cyber insurance despite cybersecurity fears

A recent survey from insurance firm Travelers shows half of surveyed contractors do not have cyber insurance, according to Construction Dive.

The 2024 Travelers Risk Index asks business insurance decision-makers from U.S. companies of various sizes and industries about the issues that worry them most. Conducted by Hart Research, the survey had 1,202 respondents across eight industries, including construction.

Cyber threats were the top concern for survey participants with 62% saying they worry some or a great deal about cyber risks.

Contractors’ top three fears were hackers gaining unauthorized access to financial accounts; the failure to operate the company because of cyber events; and a security breach or hackers. However, contractors still are behind when it comes to protection against cyber threats.

Although 80% of construction industry respondents believe having proper cybersecurity controls in place is crucial, 70% do not use endpoint detection and response tools; 70% do not have a post-breach team; 56% do not have an incident response plan; 50% lack cyber insurance; and 45% do not use multifactor authentication for remote access.

Travelers published a cybersecurity guide that recommends companies take steps such as conducting audits or reviews of data privacy and security measures; interviewing in-house or third-party IT professionals about a system’s data security and privacy protection capabilities; and implementing safeguards such as multi-factor authentication, endpoint detection and response and data backup.

To help contractors address cyber liability risk, NRCA has partnered with BPM Insurance Services and Acrisure to create NRCA’s Cyber Liability Insurance Program. 

Date : Jan. 01, 0001