Technology’s role in construction is reshaping the risk landscape of the industry. Today, contractors are performing more technology-assisted design work, using sophisticated software tools, applying more innovative project delivery models that include design elements and bringing more mobile technology to the job site.

But these trends create professional liability and cyber exposures many contractors may not recognize.

As contractors play an expanded role that includes design, they also take on the professional liability exposure for their own work and work done on their behalf. For instance, increasingly popular design-build contracts streamline projects by combining construction with professional services such as architecture and design. Contractors also provide professional advice on projects using construction management delivery systems whether at risk (CMar) or as agency (CM Agency).

Contractors may face increasing professional liability risks tied to new project software, such as building information modeling (BIM) systems, and growing cyber risks due to the proprietary and confidential data they use and store.

BIM provides a sophisticated three-dimensional representation of a project that architects, designers, engineers and subcontractors can share to coordinate design and project delivery. Because computer models and systems contain valuable and critical building plans and project files, they present a target for hackers.

Mobile devices such as tablets and smartphones present risks as well. The loss or theft of even one device can represent a serious security breach. Employees who use their own devices for work may download malware-infected third-party applications that seek out sensitive corporate information. Cybercrime, though, often takes the form of email phishing and spear-phishing attacks that seek to exploit human error to defraud the firm or to access the corporate network.

As the construction industry continues to evolve, so do the risks. As contractors adapt their risk management strategies to meet these new challenges, they should seek to work with a carrier that has expertise in the construction industry and the professional liability and cyber risks that are part of today’s projects.

Learn more about risk management strategies, data security and other steps contractors can take against growing professional liability and cyber exposures in the Chubb advisory, “New Business Models, Technology Raise Professional Liability Risks for Contractors.”