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Data breaches and cyberattacks are detrimental to the daily operations and overall success of restaurants. For instance, if customers’ credit card information is stolen, a restaurant can receive fines and even lawsuits.
Cyberthreats are an ongoing issue in the modern economy. Cyber insurance is one way restaurant owners can minimize their risk of legal action.
Let’s take a closer look at why cyber insurance is an effective business strategy for restaurants.
The primary purpose of cyber insurance is to protect against potential attacks. These cyberthreats may include identity theft, malware attacks, phishing, and data breaches. Such events can result in business disruption, revenue loss, and legal fees.
Restaurants collect data when customers pay for meals, making these businesses vulnerable to hacking. For your customers, cyberattacks mean fraudulent charges and time wasted changing their credit card information.
Employee payroll data is also an attractive target for cyberattacks. This data may include your employees’ home addresses and bank account information. Without proper layers of protection, payroll can easily become a source of costly data breaches.
Cyber insurance can protect a restaurant from the possible legal consequences of these unanticipated attacks. Therefore, it’s highly recommended that you have cyber insurance.
Between employee payroll and customer credit card information, there’s plenty of financial data for hackers to access from restaurants.
Restaurants are more vulnerable to cyberattacks when they use outdated technology or operating systems, use third-party vendors that are not PCI-compliant, do not implement firewalls, and do not securely store passwords.
Restaurants are particularly susceptible to these types of cyberattacks:
In light of the COVID-19 pandemic, securing data is more important than ever before. With cyber insurance, restaurant owners can enjoy peace of mind knowing that they’re covered in the face of digital threats. Cyber insurance may protect or help restaurants pay for:
Cyber insurance policies do offer different coverages. So, you’ll want to ask your cyber insurance provider questions.
Restaurants can control the cost of their cyber insurance policy by taking the proper measures to prevent digital breaches. Like any other insurance, cyber insurance is less expensive for those who are less likely to be attacked.
Often, providers will conduct an evaluation of the strength and type of digital security that a restaurant implements. Note that the standards to which a mom-and-pop establishment is held will likely differ from corporate-owned or chain restaurants. In either case, the greater the security already in place, the lower the cost of a good cyber policy.
Research reveals that the average cost of cyber insurance in the United States is about $1,485 per year or $124 per month. Premiums are determined by cyber liability limits and deductibles of a specific policy.
For strong protection against cyberthreats, restaurant owners can consider the following preventative measures:
Cyber insurance is important for keeping your restaurant safe against cyberthreats. With a range of policies available, you can find a policy that fits your business’s needs. Contact your insurance agent and ask them to get you a Pathpoint quote today.
