Re/insurance broker Willis Towers Watson has announced the launch of its CyCon cyber insurance solution, having concluding that cyber attacks and the failure of IT systems rank among the top risks facing the construction industry.
While the construction sector has continued to embrace and integrate more sophisticated technologies for project design, modeling, safety management and project delivery, its exposure to cyber risks has grown significantly.
Many construction companies increasingly hold sensitive data and rely on digital connectivity with business partners and subcontractors to exchange information, including employee records and business plans.
Subsequently, the industry’s exposure to cyber risk has been identified as a major threat to profitability.
“For construction companies operating and competing in today’s complex environment, the impact of a system failure or cyberattack could result in a range of losses, including contingent bodily injury and property damage, significant financial loss, reputational damage, litigation costs and regulatory fines for their business,” said Bill Noonan, North America Construction Industry leader, Willis Towers Watson.
The U.S. CyCon solution – developed with specialty cyber insurance leader NAS Insurance Services – includes a blend of first and third-party coverages with specific enhancements tailored to the industry.
Key CyCon features include coverage for insureds’ loss of business income as a result of a breach or attack, coverage for extra expenses – including expenses associated with procuring products or services from alternate sources and overtime costs – and coverage for expenses resulting from contractual penalties that an insured may be obligated to pay if a cyber event causes a job delay.
Additional coverage includes expanded definitions of computer systems to include third-party hosted sites, building information modeling and design software and coverage for privacy claims due to the use of drones in mapping and surveying projects.
“As the construction industry wakes up to these increasing threats, Willis Towers Watson is leading the way by offering a tailored and specific solution that closes the coverage gaps left by traditional products,” Noonan added.
Joe DePaul, head of FINEX Cyber/E&O, North America, Willis Towers Watson, commented, “CyCon is the latest Willis Towers Watson industry-specific cyber solution and was created as a result of close collaboration among our construction group, our cyber insurance team and our partners at NAS.”
“By capitalizing on Willis Towers Watson’s extensive cyber risk expertise and market knowledge, we are able to help clients address cyber exposures that are unique to their business.”
“Additionally, our construction industry clients will benefit from Willis Towers Watson’s integrated approach to cyber risk management, which includes access to our suite of risk assessment tools, including Cyber Quantified and Cyber Risk Profile Diagnostic, designed to help clients quantify their financial exposure and measure their cybersecurity posture, respectively,” added DePaul