The Future of Construction Risk Management

Technology is changing the construction industry landscape in amazing ways. New advances in construction technology are making collaboration, communication, project management, and business operations faster, easier, and better than ever before. But there is a flip-side to the benefits of construction technology; the risk of data loss and breaches.

Your construction risk management strategy must include considerations for data protection.

What do Target, Sony, Anthem, and Home Depot have in common? They are all companies who made the news when data breaches exposed data that included customer information, credit and debit card numbers, and even social security numbers. What should you take away from the frightful tales of these mega-corporations?

Any company, of any size, is vulnerable to data breach.

The Risk:

The construction apps and software that you use contain a vast amount of data, which might include sensitive personal and payment information. It is your responsibility to protect this data.

How to Manage Construction Technology Data Risks

Luckily, you can take steps to protect the client, project, and company information you use in your construction business.

  • Know the best practices for securing information in a small business.
  • Use strong passwords for mobile devices and computers.
  • Use network security and firewalls.
  • Install tracking software on mobile devices in case of theft.
  • Use a cloud-based system to backup data.

Contractor Insurance Protects Data and Digital Assets

Your contractor insurance policy is a helpful tool in your construction risk management strategy that can protect your data and digital assets, too. Here are some of the policies that can offer you a safety net in the event of a data loss or breach.

Inland Marine: Inland marine offers more than just protection for your tools and equipment; it also offers broader protection for electronic equipment and data including losses during repair or servicing of equipment and protection from virus or malicious software.

General Liability: Your general liability policy protects your business from costly third-party lawsuits. If you damaged a computer or server that led to lost client data, standard general liability coverage can protect you. What it won’t do, however, is cover you in the event of a data breach. Luckily, many providers will include a Cyber Liability Policy as an add-on or stand alone policy to give you the protection you need from hackers and mischief makers who make it their business to steal your client’s information.

The future of construction risk management must include technology and data protection. As technology continues to advance at lightning speed, and new software, apps, and hardware revolutionize the construction industry, protecting your business means protecting your data at all costs.

Smiling Female Contractor

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