Willis Towers Watson launches tailored cyberinsurance coverage for construction industry
Willis Towers Watson has launched CyCon, a tailored cyberinsurance solution for the construction industry...
Cyber risk exposure is a growing concern for the construction sector as the industry migrates toward “smart” operating systems that rely on sophisticated automation and enhanced technologies for project design, modeling, safety management and project delivery. Additionally, many construction companies increasingly hold sensitive data and rely on digital connectivity with business partners and subcontractors to exchange information, including employee records and business plans. In a survey of construction executives globally, the Willis Towers Watson Construction Risk Index revealed that cyberattacks and the failure of IT systems were identified as top risks facing their business.
CyCon coverage is available in the United States and was developed in close cooperation with specialty cyberinsurance leader NAS Insurance Services. The solution includes a blend of first- and third-party coverages with specific enhancements tailored to the industry. Key features include:
- Contingent bodily injury, and first- and third-party property damage due to cyber events
- Coverage for insureds’ loss of business income as a result of a breach or attack; also applies to an outage due to a cyber event at a third party on whom the company relies for operations
- Coverage for extra expenses, including expenses associated with procuring products or services from alternate sources and overtime costs
- Expansion of the “system failure” definition to include intentional shutdowns to mitigate a cyberattack
- Coverage for expenses resulting from contractual penalties that an insured may be obligated to pay if a cyber event causes a job delay
- Expansion of the privacy breach, and security and privacy wrongful act definitions to include the wrongful retention of private information
- Expanded definitions of computer systems to include third-party hosted sites, building information modeling and design software
- Coverage for privacy claims due to the use of drones in mapping and surveying projects
“For construction companies operating and competing in today’s complex environment, the impact of a system failure or cyberattack could result in a range of losses, including contingent bodily injury and property damage, significant financial loss, reputational damage, litigation costs and regulatory fines for their business,” said Bill Noonan, North America Construction Industry leader, Willis Towers Watson. “As the construction industry wakes up to these increasing threats, Willis Towers Watson is leading the way by offering a tailored and specific solution that closes the coverage gaps left by traditional products,” he added.
“CyCon is the latest Willis Towers Watson industry-specific cyber solution and was created as a result of close collaboration among our construction group, our cyberinsurance team and our partners at NAS,” said Joe DePaul, head of FINEX Cyber/E&O, North America, Willis Towers Watson. “By capitalizing on Willis Towers Watson’s extensive cyber risk expertise and market knowledge, we are able to help clients address cyber exposures that are unique to their business. Additionally, our construction industry clients will benefit from Willis Towers Watson’s integrated approach to cyber risk management, which includes access to our suite of risk assessment tools, including Cyber Quantified and Cyber Risk Profile Diagnostic, designed to help clients quantify their financial exposure and measure their cybersecurity posture, respectively.”
Learn more at willistowerswatson.com.