Do Contractors Need Cyber Liability?
How communication has changed — even on a job site!
Hand-held devices, including phones and mobile tablets are now common-place for supervisors at the job site, and the dependence on these devices for coordinating workers, for reporting delays, for addressing safety issues, and for reporting and continuity during the project is only increasing. And that doesn’t even consider that many contractors are now using drones with cameras to help in these same processes.
If these devices are ‘hacked’ what would be the ramification on the project itself, and on the communication between workers? Suppose the ‘hacker’ just holds all of the information for a ransom before they will allow access again. Or suppose the information [think BIM] is altered by a ‘hacker’.
And back at the office the contractor also has a computer system with personally identifiable information [PII] on employees, vendors, and perhaps even their clients. They may have contracts or financial information, or they may have an exposure just because they pay their vendors.
Or a contractor’s employee may inadvertently send a virus that attacks someone else’s system, giving a ‘hacker’ access to that company’s system. This will come back against the contractor as a liability issue, but there is no coverage under the General Liability.
And then there is the computer system that controls that piece of mobile equipment that the contractor leased. Suppose someone ‘hacks’ into the system and causes the mobile equipment itself to damage other property. Although the General Liability policy normally provides coverage for mobile equipment liability for property damage, it will not apply in this instance.
These examples only scratch the surface of ‘cyber’ exposures that contractors have. Yes, contractors do need Cyber Liability!
— Bobbie Duke, INSURICA Technology Practice Leader