Goldberg Segalla partner Kelly S. Johnson is quoted numerous times in a recently published Construction Dive article titled “How – and Why – to Add Cybersecurity Provisions to Construction Contracts,” that provides guidance to general contractors who have increasingly become a target of cybersecurity attacks.

“It’s not a matter of if but when,” Kelly said.

Kelly, who concentrates a portion of her practice in cybersecurity law, noted the construction industry has not kept up with security measures in the same way the finance and healthcare sectors have, making construction companies generally less protected and thus putting their clients at risk.

“You’re not only dealing with your own damage from the cyberbreach, but you’re dealing with your client’s damages as well,” she said.

In terms of taking the necessary security measures, Kelly suggested contractors who lack the knowledge to implement basic security can turn to cybersecurity insurance providers, who will often partner with security professionals to help the client.

“Some will even include it in the price of the policy,” she said. “There are creative options for companies who feel lost at sea in terms of dealing with cybersecurity.”

When attacks happen, Kelly said the first thing general contractors should do is turn to their cybersecurity insurance provider. The provider will likely supply the company with an attorney who can guide them through their legal requirements under the Securities and Exchange Commission. Johnson noted that following those requirements will help protect a general contractor from third-party litigation if personal information is involved in a hack.

“Let your insurer help you,” Kelly said. “That not only gets you an expert on board, but it also will reduce your rates because your insurer will be more confident that you’re protected.”

READ THE FULL ARTICLE HERE:

“How — and why — to add cybersecurity provisions to construction contracts,” Construction Dive, July 30, 2024

MORE ABOUT GOLDBERG SEGALLA’S KELLY S. JOHNSON:

Kelly has more than 20 years of legal experience in complex litigation, coverage, and claims handling. She has served as litigation counsel and general counsel on behalf of a variety of major clients, including insurers, representing them in all stages of federal and state court on a wide variety of complex civil, commercial, security, insolvency, contract, coverage, toxic tort, environmental coverage, and employment matters. She regularly provides business risk analysis and sound business solutions to help clients minimize costs while reducing the risk of exposure and liability. In recent years, she has narrowed her legal focus on Directors and Officers as well as Cyber Security and Technology Errors and Omissions litigation.