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Why Restaurants Should Purchase Cyber Insurance

Cyber criminals target businesses that have high volume of credit and debit card transactions, as well as a system that is easily penetrable, such as a point-of-sale system or remote-access desktop service. Restaurants (and especially franchise units) fit this description and therefore may be particularly vulnerable to cyber-attacks.

The potential costs of a security breach may be significant for restaurant owners and operators. Unlike consumers who may not be liable for credit card data theft, merchants have a duty to protect that data. Entities that process, store, or transmit cardholder data are required to comply with the Payment Card Industry Security Standards to protect the cardholder data; failure to comply may result in fines.

So what can a restaurant owner do to minimize risk?

  • Protect their data infrastructure by patching holes in firewalls
  • Create unique accounts and passwords for all users
  • Protect confidential data with encryption or tokenization
  • Have a cyber insurance policy in place

Cyber Insurance Basics:

There are many first-party coverages available, which may include:

  • Privacy breach notifications
  • Business interruption arising from computer disruptions
  • Cyber incident preparation and response
  • Cyber extortion

First-party coverage also includes computer disruptions (introductions of viruses or malware that destroy hardware, software or data) and physical damage arising from computer disruption.

There are a variety of liability coverages, which typically include:

  • Privacy liability
  • Security liability
  • Internet/social media liability

For more information on Cyber Liability and Cyber Risk, contact our HUB Technology Team today!

Original article source: Law 360 – Why more restaurants should purchase cyber insurance

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