Why Do Restaurants Need Cyber Security Insurance?

Owning or operating a restaurant can be a lucrative and rewarding business venture. However, like all businesses, you must account for various risks and exposures that could have significant financial ramifications. In addition to sharp objects, hot surfaces and hazardous substances that may present consistent danger, your company must also consider immaterial risks and perils, such as cyber incidents.

What Is Cyber Security Insurance?

Also known as cyber liability insurance and cyber insurance, this type of coverage can provide a critical financial safety net cast across many potential consequences of data breaches and other cyber incidents. An adequate cyber security insurance policy establishes a contractual agreement between your restaurant and its insurance company. As long as you maintain your coverage, you may have access to funds and resources that can limit the out-of-pocket losses and expenses arising from a cyber incident.

Why Do Restaurants Need Cyber Security Insurance?

Recent technological advancements have become integral to commercial enterprises across all industries, including restaurants. As your business conducts various operations online, such as data storage, banking, advertising and marketing, you must be vigilant in implementing appropriate loss control measures.

Even if you diligently curb risks and maintain strong restaurant cybersecurity, you may eventually be involved in a cyber incident. For example, if a cybercriminal infiltrates your systems and accesses the payroll information of employees or the transaction records of customers, the resulting consequences could be devastating.

What Can Cyber Security Insurance for Restaurants Cover?

There may be many types of cyber insurance, and the exact capabilities of your cyber liability coverage may vary depending on your unique needs, preferences budget and insurance provider. In many cases, coverage may include financial assistance for the following:

• Incident response costs—This may include expenses related to notifying affected parties and investigating the incident.
• Paying for help—Your restaurant may need to enlist the services of other parties, including credit and fraud monitoring services, IT contractors and public relations firms.
• Business interruption losses—If a cyber incident disrupts your restaurant’s normal operations, this coverage may help pay for lost or reduced revenue.
• Legal expenses—This coverage may help pay for noncompliance fines and lawsuit-related costs (e.g., attorney fees and settlements) following a cyber incident.

How Much Does Cyber Insurance Cost?

The cost of adequate cyber security insurance coverage may vary significantly. When assessing your circumstances and compiling an accurate cyber insurance quote, companies may need to consider various factors, including the unique details of your operations, the amount and type of data you store, and existing cybersecurity controls.

Get the Right Coverage

With a history of service dating back to the 19th century, Home Loan Insurance is ready to help provide cyber insurance for restaurants. Our dedicated staff will work with you to assess your coverage needs, explore available options and procure optimal policies that can secure your financial stability and future prospects. Visit our website or call 970-243-6600 to get started today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.