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