Cyber attacks on construction companies have increased. With UK construction firms in the top three most impacted sectors in the UK,1 is it time for you to secure a policy, or review your current Cyber Insurance? Direct Corporate Risks (DCR) provides robust Cyber Insurance designed to pay for costs and expenses related to a cyber incident. Whether it’s a ransomware attack, a data breach or invoice manipulation, the insurance policies we provide can help cover business interruption, restoration of IT systems, payment of ransom demands (depending on the policy), and management of communications to clients.
Call: 01277 844 360
Contact form: directcorporaterisks.com/contact/
Between the end of 2024 to the end of 2025, construction firms collectively lost £115.7 million following cyber attacks.2 With 40% of construction firms reporting data breaches or cyber attacks in the aforementioned period, it’s apparent that cyber criminals are ramping up their targeting of the building and construction sector.3
Why are construction companies targeted?
Cyber criminals will often identify the weak points of a business. Construction projects often comprise many aspects, including:
- Suppliers
- Subcontractors
- Engineers
- Architects
With all these various parts to a project, shared digital and online systems are commonplace, creating a supply chain that may have gaps in IT security or be open to human error.
Many firms also still operate with legacy IT systems, minimal in-house cybersecurity expertise, and a workforce split between site and office – a combination that criminals know how to exploit. This growing exposure has pushed construction data breach insurance from a niche product into a mainstream business necessity.
Why is human error often responsible for cyber incidents?
Human error is one of the leading factors in the majority of cyber incidents, and construction is no exception. Common examples include:
- An employee clicking a convincing phishing link while dealing with a busy inbox.
- A finance team member approving a payment change request without verifying it by phone.
- Weak or reused passwords across multiple systems.
- Site staff using personal devices or unsecured Wi-Fi to access project files.
- Sensitive documents shared via unencrypted email or insecure file-sharing links.
- Former employees or subcontractors retaining system access after leaving a project.
Even if your business has good technical defences, you can remain exposed if your people aren’t trained to spot and respond to threats. Insurance doesn’t replace good cyber hygiene, but it does provide a financial backstop if a mistake is made.
Types of cyber attacks facing construction firms
Understanding the specific threats your business faces makes it much easier to see why specialist Cyber Insurance matters. Here are the attack types most frequently reported across the construction sector.
Phishing and Business Email Compromise (BEC)
Fraudsters send emails that appear to come from a trusted supplier, client, or colleague, often requesting an urgent bank transfer or asking someone to click a malicious link. In construction, where large invoices and payments are routine, BEC scams are especially damaging with a single fraudulent payment redirection potentially running into hundreds of thousands of pounds.
Invoice and Payment Fraud
Closely related to BEC, this involves criminals intercepting or spoofing invoices to redirect payments to fraudulent accounts. Given the scale of payments moving through construction supply chains, this is one of the costliest forms of attack in the sector.
Ransomware
Ransomware attacks lock your company out of its own systems and files. Criminals then demand payment for their release. If you are mid-project, this can mean losing access to drawings, scheduling software, and financial systems overnight – halting site work and triggering costly delays and contractual penalties.
Data Breaches
If you (as many firms do) store personal data on employees, subcontractors, and sometimes members of the public (for example, in planning consultations), a breach exposing this information can trigger regulatory action under UK GDPR, along with reputational damage and legal costs.
What does Cyber Insurance for construction firms cover?
Policies vary by provider, but a well-structured Cyber Insurance construction industry policy generally includes:
- Incident response costs – forensic investigation, IT recovery, and crisis management support
- Business interruption – compensation for lost income while systems are restored
- Data breach costs – notification expenses, regulatory fines (where insurable), and legal fees
- Cyber extortion cover – support for ransomware demands and negotiation
- Third-party liability – claims from clients, subcontractors, or partners affected by a breach originating in your systems
- Social engineering fraud cover – cover for BEC-style payment fraud
Why choose DCR?
Investing in Cyber Insurance for the construction industry cover, alongside Contractor Cyber Liability protection can give you a practical way to manage this risk. Combined with employee awareness around cyber threats, and sound cybersecurity practices, it forms a sensible, proportionate response to this serious issue.
Our team are experienced in finding, setting up and managing Cyber Insurance for large and small construction firms. We also provide a wide range of insurances specifically tailored for contractors and builders, including Liability Insurance, Commercial Fleet cover, and JCT Clause 6.5.1 Insurance.
Call: 01277 844 360
Contact form: directcorporaterisks.com/contact/
1-3. https://www.ukconstructionmedia.co.uk/news/115m-lost-to-cyberattacks/