In the age of digital design, most architectural, engineering and/or design firms rely heavily on their computer networks for almost every aspect of business. Every day, firms are designing projects, collaborating with others, communicating with employees or clients and even taking electronic payments. All of these activities can put a business at risk of being the target for cyber-related crimes. A cyber attack can have some costly repercussions for businesses, including but not limited to:
- Business interruption
- Construction delays
- Hiring forensic accountants or IT specialists
- Legal defense fees
- Judgments or settlements
- Notifying affected parties
- Credit monitoring services
- Hiring public relations professionals
Cyber Liability Insurance is an essential protection for any business that stores any information on a computer network. It protects businesses against data losses caused by cyber-attacks, viruses, and other cyber-related threats. Cyber liability insurance can also cover third-party lawsuits against a business, which are usually brought on by customers, clients or employees who have been affected by the business’s data breach. Coverage varies depending on the insurance company, but cyber liability policies can include the following types of coverage:
- Loss of Business Income: Can cover income lost as well as expenses incurred due to any type computer systems shutdown resulting from a hacker attack, virus or other covered cyber-related peril.
- Loss of Data: In the event data is damaged or lost following a virus, hacker attack or other covered cyber-related peril, this type of insurance can cover the cost of restoring or recreating the data.
- Associated Costs: A cyber liability policy can typically cover associated costs such as the cost of notifying affected parties, providing credit protection services, hiring public relations, legal consultants and computer forensics consultants and more.
- Cyber Extortion: This type of coverage helps with the costs resulting from a cyber extortion threat, including ransomware.
- Network Security Liability: This covers third-party lawsuits against a firm where client, customer or employee information is compromised or in the event others are unable to access their data on the firm’s computer system following a data breach.
- Network Privacy Liability: Also covers third-party lawsuits, but typically covers allegations that the company failed to protect sensitive data such as social security numbers, credit card numbers or bank account information belonging to employees, clients, partners or customers that was stored in the company’s computer systems.
As architects and engineers continue to move forward in adopting new technologies, their risk for a cyber breach increases. One of the most important things an A&E firm can do is to make sure they have security measures in place at all levels, and ensure they have the proper coverage to protect their assets in the event a cyber attack does happen.
About Axis Insurance Services
At Axis Insurance Services, we aim to help our customers identify their exposures and protect themselves. Founded in 1999, we offer insurance programs to a wide variety of professionals and industries including attorneys, real estate, healthcare, architects, and more, and also have a wholesale division. We pride ourselves on offering flexible insurance coverage tailored specifically to each customer’s needs. To learn more about our solutions, contact us at (201) 847-9175 to speak with one of our professionals.