Construction firms are no strangers to risk. From project delays to workplace accidents, managing risk is part of the daily grind. But in 2025, there’s a growing threat that too many construction businesses are overlooking: cybercrime.
This is where cyber insurance can provide a safety net. It’s not just for tech companies—construction firms are quickly realising the value of having a safety net against cyber threats. A cyber liability insurance policy can help cover the costs of business interruption, legal fees, forensic investigation, ransom payments, and more.
This article will explore the unique challenges facing the construction sector and how cyber insurance coverage can protect your business from unforeseen cyber threats.
What is Cyber Insurance?
In simple terms, cyber insurance (also known as cyber liability insurance) is designed to protect businesses from the financial and operational impacts of a cyberattack. Think of it as a safety net that helps you recover from incidents like ransomware attacks, data breaches, or cyber extortion.
But what is cyber insurance in practice? It’s a specialised insurance policy that provides financial support when your business faces losses due to cybercrime.
A cyber insurance policy typically covers several key areas, including:
- Business Interruption: If your operations are disrupted due to a cyberattack, cyber insurance can help recover lost income and cover the costs of getting your business back online.
- Ransom Payments: In the event of a ransomware attack, the policy can assist with ransom payment negotiations and associated expenses.
- Forensic Investigation: After a cyber incident, forensic experts are often required to identify how your computer system was compromised and prevent further damage. Cyber insurance helps cover the cost of this crucial process.
- Legal and Regulatory Costs: A data breach involving sensitive data can lead to legal disputes and regulatory fines. Cyber insurance coverage can help with these expenses.
- Third-Party Liability: If an attack on your business affects your clients or partners, cyber insurance may cover damages, legal claims, and settlements.
Why Construction Businesses Need Cyber Insurance
The construction industry is now heavily dependent on digital tools, from project management software to cloud-based collaboration platforms. While these technologies improve efficiency, they also create significant vulnerabilities.
One of the primary reasons construction firms need cyber security insurance is the high cost of business interruption. A ransomware attack can bring your operations to a halt, delaying project timelines and leading to significant financial loss. For example, Australian construction firm Goodline was attacked by threat group RansomHub in September 2024; the group used company credentials to access Goodline’s network, and stole 600GB of data.
Data breaches are another critical concern. Construction companies handle sensitive data, such as project blueprints, financial information, and client details. If this information is stolen or leaked, it can lead to reputational damage and costly legal consequences.
How Much is Cyber Insurance?
The big question many businesses ask first is, how much is cyber insurance? It’s a difficult question to answer, as the cost is dependent on many factors that vary from company to company. Generally speaking, cyber insurance policies start from $1000 per year, and premiums will begin to vary from there.
Factors that influence the cost of cyber insurance policies include:
1. Business Size and Revenue
Larger businesses with more employees and higher revenues typically face higher costs, as their digital footprint—and therefore their exposure to cyber risks—is larger.
2. Type and Volume of Data Handled
For construction firms, this data might include financial records, client information, project designs, and supplier contracts. The more valuable or sensitive the data, the greater the financial impact of a breach, which increases your premium.
3. Cyber Security Measures
The stronger your cyber security posture, the lower you can expect to pay, as insurers will consider you a lower-risk customer.
4. History of Cyber Incidents
If your business has experienced previous cyberattacks, you may be seen as a higher risk by insurers, resulting in higher premiums. However, demonstrating that you’ve taken steps to improve your cyber security posture since the incident can help mitigate costs.
5. Coverage Type and Limits
The scope of your insurance coverages also affects the cost. Comprehensive policies that include business interruption, forensic investigation, ransom payment, and third-party coverage tend to be more expensive. Similarly, higher coverage limits—designed to provide greater financial protection—will lead to higher premiums.
6. Insurance Provider
Different insurance companies assess risk and calculate premiums in their own way. This makes it important to work with an experienced insurance broker who understands the construction industry and can help you compare policies to find the best value.
Cyber Insurance Benefits Beyond Financial Protection
1. Risk Assessments and Preventative Measures
Many insurance companies partner with cyber security experts to help businesses identify vulnerabilities in their systems. These assessments provide actionable insights, such as whether your computer systems are adequately protected or if your employees need training to avoid phishing scams. For construction firms, this is especially valuable given the variety of platforms and devices used across projects.
2. Access to Incident Response Teams
A quick response is critical in the event of a cyber incident. Many cyber insurance providers offer access to incident response teams who specialise in minimising damage and recovering compromised systems. For example, if a ransomware attack locks your systems, these experts can work to resolve the issue without unnecessary delays.
3. Improved Confidence with Clients and Partners
Having a cyber insurance policy signals to clients, contractors, and partners that you take cyber security seriously. In an industry where trust and reliability are essential, this reassures stakeholders that their sensitive data and project information are in safe hands.
4. Assistance with Regulatory Compliance
Non-compliance with data protection laws can lead to heavy fines and reputational damage. Cyber insurance policies often provide resources to ensure you’re meeting your legal obligations. They may also cover fines or penalties in case of non-compliance, offering an additional layer of protection.
How to Secure the Best Cyber Insurance Plan for Your Business
Step 1: Assess Your Cyber Security Risks
Start by identifying vulnerabilities in your computer system, networks, and processes. Do you use cloud-based tools for project management? Are your employees trained to recognise phishing scams? Understanding your risks will help you determine the type of cyber insurance coverage your business needs.
Step 2: Partner with Cyber Security Experts
Experienced IT and cyber security providers can strengthen your defences. From securing your systems to monitoring for threats, these specialists help construction businesses implement measures that reduce the likelihood of an attack. Insurers often look favourably on businesses with strong cyber security practices, which can lower the cost of cyber insurance.
Step 3: Choose the Right Cyber Insurance Policy
Not all cyber liability insurance policies are the same. Some focus on specific risks, like ransomware attacks or business interruption, while others offer comprehensive coverage, including third-party coverage for incidents that affect your clients or partners. Working with an insurance broker who understands the construction industry can help you find the right policy.
Step 4: Review the Details
When comparing policies, pay attention to what’s included and excluded. For example:
- Does the policy cover forensic investigation costs to identify how a breach occurred?
- Is ransom payment negotiation included?
- Does it address legal and regulatory fines from breaches involving sensitive data?
By clarifying these details upfront, you can ensure your insurance company provides adequate coverage.
Step 5: Combine Cyber Insurance with Proactive Defences
While cyber insurance is critical, it’s not a substitute for strong cyber security practices. Use a layered approach: secure your networks, back up your data, and educate your team to recognise threats. Cyber insurance works best when paired with these preventative measures.
Secure Your Ideal Cyber Insurance Policy with the Right Cyber Security Measures
A cyber insurance policy provides the support you need to recover quickly and minimise the impact of a breach, whether that’s covering ransom payments, business interruption costs, or forensic investigation expenses.
With the right combination of cyber insurance coverage and proactive security measures, you can protect your business from financial loss, project delays, and reputational damage.
At Steadfast Solutions, we specialise in providing cyber security services for construction companies. Our team will work with you to identify risks, strengthen your defences, and ensure you’re well-positioned to secure the right cyber insurance policy.
