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When most contractors think about insurance, they think about general liability, commercial auto, workers’ compensation, and tools and equipment coverage.
Cyber insurance often doesn’t make the list.
After all, you’re a contractor—not a technology company.
But today’s contractors rely on computers, email, accounting software, customer databases, payroll systems, cloud storage, and online banking every day. That means cyber criminals don’t see you as a construction company, landscaper, electrician, or drywall contractor—they see you as a target.
The reality is that cyberattacks can happen to businesses of any size, and contractors are increasingly finding themselves in the crosshairs.
Here are three real-world examples that demonstrate why cyber insurance has become an important part of protecting modern contracting businesses.
Scenario #1: A Malware Attack Shuts Down an Electrical Contractor
An electrical contractor experienced a devastating cyberattack after a hacker gained access to a remote server.
Although the company had cybersecurity software installed, the attacker was able to infiltrate the system, create administrator access, disable antivirus protection, stop backups, and install malware.
The intruder remained undetected for months.
Eventually, ransomware was installed and hard drive partitions were deleted, effectively erasing critical business information.
The contractor chose not to pay the ransom, but still faced significant expenses including:
- Forensic IT investigations
- Data restoration
- System restoration
- Breach notifications
- Credit monitoring services for affected individuals
- Lost productivity and downtime
Total Cost: $32,750
Even without paying a ransom, the financial impact was substantial.
Scenario #2: A Phishing Email Costs a Drywall Contractor Thousands
A drywall contractor became the victim of a phishing attack after an employee clicked on what appeared to be a legitimate email.
Cyber criminals gained access to the company’s systems and installed ransomware, locking critical business data and disrupting operations.
Again, the contractor chose not to pay the ransom.
However, the company still incurred significant costs:
- Rebuilding servers and computers
- Restoring business operations
- Re-entering customer information from paper records
- Lost business income during downtime
- A lost contract due to operational delays
The company was unable to operate normally for an entire week.
Total Cost: $15,000
This type of attack highlights an important reality: the biggest expense isn’t always the ransom itself. It’s often the disruption to your business.
Scenario #3: A Landscaper’s Email Account Is Compromised
Cyberattacks don’t always involve ransomware.
In this case, a commercial landscaping company experienced a data breach when an HR employee unknowingly fell victim to a phishing email.
The attackers gained access to the employee’s email account and remained there for several days.
During that time, they obtained:
- Employee personal information
- Customer information
- Sensitive company documents
As a result, the company had to:
- Notify affected individuals
- Provide fraud protection services
- Conduct legal reviews
- Defend against potential liability claims
- Manage reputational damage
Total Cost: $11,150
Beyond the financial loss, the breach damaged trust with both employees and customers.
Why Contractors Are Attractive Targets
Many contractors mistakenly assume cyber criminals only target large corporations.
In reality, smaller businesses are often targeted because they may have fewer cybersecurity resources and protections in place.
Contractors commonly store valuable information such as:
- Employee Social Security numbers
- Payroll information
- Banking details
- Vendor payment information
- Customer contact information
- Project contracts and plans
That information can be extremely valuable to cyber criminals.
What Does Cyber Insurance Cover?
While every policy is different, cyber insurance may help cover expenses such as:
- Data breach response costs
- Customer notification expenses
- Credit monitoring services
- Forensic IT investigations
- System restoration
- Data recovery
- Business interruption losses
- Cyber extortion and ransomware events
- Legal expenses
- Public relations and reputation management
One surprising fact many business owners don’t realize: cyber claims aren’t always tied to information stored on a computer. In some situations, stolen paper records containing personal information can also trigger cyber-related coverage.
Cyber Insurance Is No Longer Just for Technology Companies
Whether you’re an electrician, plumber, HVAC contractor, landscaper, roofer, painter, or general contractor, chances are your business relies on technology every day.
And if your business relies on technology, cyber risks are part of your business risks.
At Blue Marsh Insurance, we help Pennsylvania contractors evaluate their cyber exposures and determine whether cyber insurance makes sense for their business. We’ll review your operations, explain your options, and help you find coverage that fits your needs and budget.
A little more about Blue Marsh Insurance…
When he founded Blue Marsh, Tom Davenport wanted to create a different kind of insurance company. One that’s built on personal relationships and a local presence. One where you, the customer, feel more like a friend.
As an independent insurance agency, Blue Marsh Insurance represents a carefully selected group of financially strong, reputable insurance companies. Therefore, we are able to offer you the best coverage at the most competitive price.
If you’re interested in starting a quote online or having us take a look at your current policies, click here!