Warning is often the reaction I get when I discuss Cyber Insurance for Construction Manager in Wisconsin. From its perspective, it would be a good policy to have North Koreans focus their slave hay strength on a Sheboygan plumber. The resulting 200 bit coin amount for their $ 200 laptop seems to be a laughable view for a field that is generally not technically dependent. The truth is, however, that entrepreneurs are a growing target for hackers, but fear is not the only reason why an entrepreneur has Cyber Insurance.
So is greed .
New mandate contract forcing the conversation between Cyber Insurance between owners and entrepreneurs. On October 31, 2018, the American Institute of Architects (AIA) requires the use of its new 2017 revised agreements and to discard the old 2007 versions. Among the most common forms are basic agreements between owners and entrepreneurs: A101, A102 and A103. All three of these forms have a new section dedicated to Cyber Insurance.
The relevant language begins in section A.2.5.1. This segment encourages the owner to purchase Cyber Security Insurance for any losses or violations if such an event would occur at work. This implies an opportunity for an entrepreneur to sell the fact that they have 3 rd party Cyber Insurance and may cover such a crime. Alternatively, this could be a threat if the contractor has no Cyber Insurance and may lose a bid to a competitor who has said coverage.
Why were Cyber Insurance languages introduced in this part of the contract? AIA believes there is a growing threat of electronic data loss for owners after several examples of real worlds occurred where negligent entrepreneurs were required.
In 2013, a HVAC contractor in Pennsylvania worked in a target store. An employee at the plumbing contractor opened a virus laced email. This email stole the identifier and password of the contractor and could infiltrate Target's vendor portal. From there, criminals could access Targets internal networks. The result was 5 th largest cyberattack in history and 70 million credit cards.
In addition to encouraging owners to achieve Cyber Insurance, Forms A101-3 offers easy opportunities for owners to demand Cyber Insurance from entrepreneurs. Furthermore, in the contract (Section A.126.96.36.199), the owner is given a segment to fill in additional cover that entrepreneurs must have at work. In the real world, we begin to see agreements that require a cyber policy, often with high limits.
Cyber Insurance is an opportunity for entrepreneurs than a threat. Having a big job policy does not only protect your business in the event of a crime, but also gives the sales or marketing department extra ammunition to make the winning offer.
Not all Cyber policies are the same. There is a big difference between first and third party coverage. Contact an agent to draft the best Cyber policy for your company.