Cyber Liability and Contractors: A Necessary Coverage

Cyber Liability and Contractors: A Necessary CoverageAs cyber-attacks are becoming more common and pose more serious threats than ever before, businesses of all types are at risk for a breach. While artisan contractors may feel as though they are not at risk of such exposures, the truth is, any business that uses the cloud for data storage or processes digital information is at risk. As we take a closer look at the exposures faced by this industry, ensure you are protected with a comprehensive Lake Tahoe Cyber Liability policy.

You may be thinking, I’m a contractor, why would I need this policy and how would cyber-threats affect me? The truth is, there are many day-to-day activities that already expose you to cyber threats. For example, if you store client information on the cloud, if you process credit card payments, or if you have any confidential client-specific information on your work laptops, you are at risk.

What’s more, company laptops with sensitive information on them are at risk for violating HIPAA compliance, as well. This means that if one was to be stolen, you would face additional fees and penalties for violating confidentiality agreements as well as paying for the cyber-breach damages.

While this policy is still relatively new, it’s an essential component to protect any artisan contractor. To give you some perspective, Constructor Magazine states that there were over 117,000 cyber-attacks per day in 2014; that’s up nearly 50 percent from the previous year. To make it worse, the average cost for recovering from these attacks has exceeded the million-dollar mark. Especially for small contractor businesses, these figures can devastate the business.

Lastly, it’s important to understand that standard general liability policies do not extend coverage for cyber-attacks. Instead, you need a cyber liability policy to specifically protect your business and its networks against a variety of damage costs including lawyers, notifying clients of the breach, public relations firms to manage your future reputation, and more.

At Cal-Nevada Insurance Agency, we serve artisan contractors throughout northern California, Arizona, and Nevada areas with the best risk-management solutions and comprehensive products. We offer a variety of coverages to ensure your business thrives. For more information, contact us today at (866) 670-5948.