Gallagher sounds alarm on rising cyber threats in construction sector
Gallagher sounds alarm on rising cyber threats in construction sector | Insurance Business Australia
Construction & Engineering
Gallagher sounds alarm on rising cyber threats in construction sector
Common cyber threats in the sector outlined
Construction & Engineering
By
Roxanne Libatique
As Australian construction companies increasingly adopt digital technologies to enhance operational efficiency and project management, they are also exposing themselves to greater cyber risks, according to Gallagher.
The brokerage giant’s cyber insurance experts are raising awareness about these risks and offering strategies for construction businesses to safeguard against potential cyber threats.
Common cyber threats facing the construction industry
According to Gallager, cyber threats that are relevant to the construction sector include:
Why construction firms are at risk
Gallagher said that the sensitive nature of data managed by construction firms makes them attractive targets for cybercriminals. Projects typically involve detailed architectural plans, financial records, and personal information about workers, all of which can be exploited if not adequately protected.
Breaches can result in unauthorised access to client data, ransomware attacks, and operational disruptions.
The role of cyber insurance in mitigating risks in the construction industry
Given the potentially severe financial impact of cyber incidents, cyber insurers and brokers are encouraged to remind construction businesses about the importance of making cyber insurance a part of their risk management strategy.
“Cyberattacks can involve significant costs and down time for construction businesses, with the potential to derail projects. Cyber insurance can help cover expenses involved and provide access to expert help, from ransom negotiation to damage control,” Gallagher said.
The brokerage emphasised a thorough approach to managing cyber risks, which includes:
conducting assessments to identify critical assets and potential vulnerabilities
enhancing security governance and improving incident detection and response capabilities
modelling the financial impact of potential cyber incidents
considering insurance as a risk transfer solution to protect the balance sheet
These cyber risks come on the back of ongoing supply chain disruptions facing the Australian construction industry
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