Cybercrime continues to rise in 2021 as businesses digitize their operations. The construction industry is no exception; its increased dependency on software applications and online services to manage bidding, inventory of construction supplies and projects, as well as the amount of sensitive data that construction businesses process make them a new target for cybercriminals.
Small and mid-size construction companies are not immune to cyberattacks either: when serving large enterprises, they have access to building plans or employee information that might expose valuable data about the enterprise.
RMD Kwikform, a construction business, reported being attacked in November of last year, only months after its parent company fell victim to cybercrime as well. RMD Kwikform has a revenue of about $45M; not the size of a company many expect to get targeted. But that is where smaller companies have a dangerous flaw in their thinking: cybercriminals do not only count on getting one, big ransom; they strategize around what’s common to all companies: employees. Human error is by far the most common way for cybercriminals to infiltrate a company’s digital footprint and gain access to sensitive information. In small and mid-size organizations – the kinds that think they would never get targeted – cybersecurity controls and training of employees for cybersecurity awareness are often insufficient. When criminals scan the web for security flaws with sophisticated hacking tools, thousands of organizations show vulnerabilities, no matter the size.
Many businesses haven’t invested in cyber insurance yet. When an incident occurs, the support provided by whatever form of commercial insurance they might have is minimal.
You can visualize the issue in our comparison between a Businesses Owner Policy (aka BOP) and a standalone cyber policy.
Cowbell’s foresight, awareness, and understanding of cyber exposures in the construction industry led to the introduction of the Missed Bid Endorsement, which is a specialty coverage on our Cowbell Prime 250 policy. The Missed Bid Endorsement is a part of our Business Interruption coverages, specifically designed to address the needs of companies in selected industries – such as construction – which could have suffered a missed income opportunity from a bid (including an RFP) due to a cyberattack.
The Missed Bid Endorsement also includes the costs of retaining a forensic accountant to evaluate the amount of the profit which could have been earned or the amount of the loss which could have been avoided, if a cyberattack had not happened to the company. This coverage demonstrates Cowbell’s industry leadership and keen insight into the needs that are unique to specific classes of clients.
Other classes of business that are eligible for the Missed Bid endorsement are: Architectural services, landscape architectural services, engineering services, drafting services, building inspection services, surveying and mapping services, testing laboratories, interior design services, industrial design services, and graphic design services.
Additionally, Cowbell Cyber enables closed-loop risk management for every policyholder through our partner program, Cowbell Connect. That entails but is not limited to: a breach hotline and pre-and post-breach experts, forensic teams, and cyber awareness training for every employee.
For more information about Cowbell Cyber, our partner program, and the Cowbell Prime 250 policy, which has the option to add the Missed Bid Endorsement, you can visit our website to get appointed and start delivering the industry’s most up-to-date coverage for construction companies to your clients. If you want to contact us directly, write to us at [email protected].