Builders Mutual Insurance Faces Data Breach Impacting Thousands

Builders Mutual Insurance Co., a prominent commercial construction underwriter headquartered in Raleigh, North Carolina, recently experienced a data breach affecting a number of individuals. This incident exposed the personal information of 64,761 clients, current employees, and former employees. This makes us once again consider the importance of cybersecurity in the construction industry.

Data Breach Discovery

Builders Mutual Insurance Co. detected the data breach when they noticed unusual activity on December 14, 2022. Acting swiftly, the company engaged external experts to investigate the breach. On December 15, investigators confirmed that some files had been copied, raising concerns about sensitive data exposure. The compromised information included names, Social Security numbers, medical data, health insurance details, and workers’ compensation records.

Builders Mutual Insurance’s Offerings

Builders Mutual offers a range of insurance solutions, including workers’ compensation, general liability, property insurance, inland marine, auto insurance, and crime insurance. Their services cater to clients in both residential and nonresidential construction industries. The company’s commitment to cybersecurity had previously received recognition.

Response to the Breach

Builders Mutual is taking proactive steps to address the breach and mitigate its impact. The measures include.

Additional Safety Measures and Workforce Training

Builders Mutual is going to work on its cybersecurity measures and providing specialized training to its employees to bolster defenses against future cyber threats.

Free Credit Monitoring 

Affected individuals will receive 12 months of free credit monitoring to safeguard their financial information.

Security Freeze and Fraud Warning

The company is assisting those affected in placing security freezes and fraud warnings on their credit reports.

Contact Information

Builders Mutual is providing contact information for national consumer reporting organizations, ensuring individuals have access to resources for addressing potential issues.

Insights into Cybersecurity in Construction

The data breach at Builders Mutual is undoubtedly a reminder of the cybersecurity challenges that are faced by the construction industry. A recent study by the Dodge Construction Network and Egnyte highlighted that many builders are ill-prepared to counter cyberattacks. The study found that 59% of Architecture, Engineering, and Construction (AEC) companies had experienced a cybersecurity attack in the past two years.

Stel Valavanis, a cybersecurity expert, emphasized the need for contractors to establish proper cybersecurity frameworks and prioritize IT support. He stated that organizations must actively detect and preempt cyber threats to reduce downtime and financial exposure.

Rising Complaints By Insurance Companies

In addition to cybersecurity concerns, the insurance companies are dealing with more and more complaints. The Financial Ombudsman received 3,869 complaints related to auto/motorcycle insurance and 1,776 complaints concerning building insurance claims in the first three months of the fiscal year (April-June 2023). Several factors contribute to this increase, including delayed claims payments and challenges in securing contractors and materials for repairs.