Cyber Liability Insurance for Contractors

Cyber Liability Insurance - Protect Your Digital Business

In today's digital world, contractors face increasing cyber threats that can cripple operations and expose sensitive data. From ransomware attacks to data breaches, cyber criminals target businesses of all sizes. Cyber Liability insurance provides essential protection for the modern contractor.

Call Now: (800) 918-3584 or 844-WORK-247

Why Contractors Need Cyber Insurance

You're More at Risk Than You Think

• Customer data: Names, addresses, phone numbers, payment information
• Employee records: Social Security numbers, banking details, personal information
• Financial systems: Banking access, accounting software, payroll systems
• Digital operations: Project management software, communication systems, file storage

Common Contractor Cyber Threats

• Ransomware: Criminals encrypt your files and demand payment for decryption
• Data breaches: Theft of customer or employee personal information
• Social engineering: Fraudulent wire transfers and payment redirections
• Business email compromise: Criminals hijack email accounts to commit fraud
• System outages: Cyber attacks that shut down your operations

Comprehensive Cyber Protection

1. Data Breach Response

First-Party Coverage:

• Forensic investigation costs
• Legal notification requirements
• Credit monitoring for affected individuals
• Public relations and crisis management
• Regulatory fines and penalties

Example: A hacker accesses your customer database. Coverage pays for investigation, customer notification, credit monitoring, and legal defense.

2. Cyber Extortion and Ransomware

• Ransom payments (where legally permitted)
• Negotiation services with cybercriminals
• System restoration costs
• Lost income during downtime

Example: Ransomware encrypts your files and demands $50,000. Coverage handles negotiation, payment (if advisable), and system restoration.

3. Business Interruption

• Lost income from cyber events
• Extra expenses to maintain operations
• System restoration costs
• Temporary location expenses

Example: A cyber attack shuts down your systems for a week. Coverage pays for lost revenue and costs to work from alternate locations.

4. Social Engineering and Fraud

• Fraudulent fund transfers
• Invoice manipulation schemes
• Fake vendor payment requests
• Employee impersonation fraud

Example: Criminals pose as a vendor and trick you into wiring $25,000 to a fake account. Coverage reimburses the stolen funds.

5. Network Security Liability

Third-Party Coverage:

• Lawsuits from customers affected by your data breach
• Transmission of malware to others
• Failure to prevent unauthorized access
• Privacy violations and regulatory claims

6. Technology Errors & Omissions

• Software failures causing client losses
• Technology service interruptions
• Website errors and omissions
• Cloud service failures

Coverage Limits and Options

Available Coverage Limits:

• $1,000,000 (small contractors)
• $2,000,000 (mid-size contractors)
• $5,000,000 (larger operations)
• $10,000,000+ (enterprise contractors)

Deductible Options:

• $1,000
• $2,500
• $5,000
• $10,000

Specialized Features:

• 24/7 incident response hotline
• Pre-approved vendor networks
• Cyber security training for employees
• Risk assessment tools
• Regulatory compliance guidance

Industry-Specific Cyber Risks

General Contractors

• Customer payment information
• Subcontractor data
• Project management systems
• Accounting and payroll software

Specialty Contractors

• Client access codes and security information
• Proprietary installation methods
• Customer premises access data
• Equipment control systems

Technology Contractors

• Client network access
• System passwords and credentials
• Proprietary software and data
• Remote monitoring systems

Cyber Prevention Best Practices

Basic Security Measures:

• Regular software updates and patches
• Strong password policies
• Employee cyber security training
• Regular data backups
• Multi-factor authentication

Advanced Protection:

• Firewall and antivirus software
• Email filtering and security
• Network monitoring
• Incident response planning
• Vendor security assessments

Real Contractor Cyber Claims

Case 1: Ransomware Attack

A roofing contractor's systems were encrypted by ransomware. The business was shut down for 10 days while systems were restored. Cyber insurance covered the $15,000 ransom payment, $40,000 in lost revenue, and $8,000 in system restoration costs.

Case 2: Social Engineering Fraud

An electrical contractor received a fake email appearing to be from a regular supplier requesting payment to a new bank account. After wiring $18,000, they discovered the fraud. Cyber insurance reimbursed the stolen funds.

Case 3: Customer Data Breach

A general contractor's customer database was breached, exposing 2,500 customer records. Cyber insurance covered $65,000 in notification costs, credit monitoring, legal defense, and regulatory response.

Why Choose Contractor's Choice Agency?

• Industry Understanding: We know the unique cyber risks contractors face
• Comprehensive Coverage: Full spectrum of cyber protections
• 24/7 Support: Immediate response when cyber incidents occur
• Competitive Rates: Affordable protection for contractors of all sizes
• Risk Management: Proactive cyber security guidance

Learn more about our agency's approach to contractor protection in our welcome blog post, and discover additional coverage options in our insurance resources section.

Get Your Cyber Liability Quote Today

Don't wait until you're the victim of a cyber attack. With cyber threats increasing daily, every contractor needs protection. We'll help you understand your risks and find the right coverage.

Call Now: (800) 918-3584 or 844-WORK-247 (844-967-5247)

Email: info@contractorschoiceagency.com

Ask about bundling cyber insurance with your other business coverage for potential discounts.