CYBER LIABILITY INSURANCE / DATA BREACH INSURANCE
for Restaurants, Cafes, Bars, and Other Food Services Businesses

According to Verizon's Data Breach Investigation Report, restaurants are the single most targeted business when it comes to cyber attack and data breach, making Cyber Liability Insurance a good idea for any independent dining establishment or tavern.

The Accommodation and Food Services Industry account for 54 percent of all cyber attacks – and restaurants were targets in about 95 percent of those incidents.

And it's not just larger establishments that need to worry. Smaller fast-food restaurants are trending toward carrying Cyber Liability Insurance coverage too. Why? Because of the high volume of credit and debit card numbers that are processed through their POS systems – information that is highly desired by cyber criminals.

Read on to learn more about how data breaches can cost your food services business serious money and how Cyber Liability Insurance can protect your restaurant after a cyber attack.

What Is A Data Breach?

What Is A Data Breach?

A data breach happens when an unauthorized individual gains access to electronic information. Usually cyber criminals are after a specific type of data called "personally identifiable information," or PII, which then can sell or use to steal identities.

Unfortunately, restaurants handle a significant amount of PII every day, which includes customers'…

  • Names.
  • Bank account numbers.
  • Credit or debit card numbers.
  • Driver's license or state ID number.

But how do cyber thieves get this information? It's easier than you think.

It might start with a single hacker who figures out how to remotely access your point-of-sale system. The hacker scans the Internet for IP addresses that appear to be restaurant servers using special software.

When the hacker finds these servers, they might run a program that tries common passwords in an attempt to access your system. And herein lies the problem. Many small businesses do not set up unique passwords for their POS systems. It's easy for a hacker to find a combination that works – and then the hacker has complete access to your system.

Once the hacker has access, they can use other programs to copy the credit and debit card numbers of your customers and sell them for profit on the black market.

This is only one example of how a hacker can gain access to your system, but it illustrates the key point: cyber criminals can be thwarted with simple security protections: using a unique and complex password, securing your POS system with a firewall, and setting up your POS system to clear customer data after a certain amount of time.

Most cyber attacks are considered "crimes of opportunity," meaning that they happen precisely because owner of food services businesses don't take basic security measures. But sometimes even proper security measures fail. And when that happens, it's good to have a Cyber Liability Insurance plan on your side. Read on to learn how Cyber Risk coverage can protect your restaurant, bar, tavern, bakery, coffee shop, banquet hall or other food services business from the potentially devastating costs of a data breach.

How Cyber Liability Insurance Protects Food Services Businesses

How Cyber Liability Insurance Protects Food Services Businesses

Cyber Liability Insurance, also called Cyber Risk Insurance and Data Breach Insurance, is a small business insurance plan that helps restaurants pay for the expenses associated with recovering from a data breach. Data breaches tend to be expensive – $188 per record on average as of 2012, according to a report by the Ponemon Institute – because data breaches hardly ever affect only one person at a time. After all, if a hacker could only access a single person's personal identifying information through data breach efforts, why bother?

Because lost or stolen data cannot be recovered or replaced once it's gone, your Cyber Liability Insurance works a bit differently than other small business insurance policies. It's designed to help your business minimize the consequences of data breach by financing a variety of key damage control efforts, such as…

  • Cyber extortion expenses. Cyber extortion happens when a cyber criminal holds your restaurant's information "hostage" until you meet their monetary demands. Your insurance policy can help you pay for this expense.
  • Legal expenses. Your business may face legal trouble after a data breach (e.g., customers suing you over failure to take reasonable security measures in protecting their data), which is why your coverage helps you pay for the expenses – even if the suit never goes to trial.
  • Notifying affected parties. Many states have laws that require restaurant owners to notify affected customers after a data breach. This can end up costing your business a lot of effort and money, which is why your insurance coverage helps pay for it.
  • Credit monitoring services. Many businesses hit by data breaches like to offer their customers credit monitoring services in an attempt to mend fences. This expense is usually covered under Cyber Liability policies. In some states, credit monitoring for affected parties is required.
  • A marketing or PR campaign. One of the biggest consequences of data breaches is the money you may lose in the future due to your tarnished reputation. Most Cyber Liability Insurance policies can help you fund a marketing campaign to try to attract new clients and rebuild the public's trust.

Depending on your existing insurance policies, you may be able to purchase Cyber Liability Insurance as a standalone policy or add it as an endorsement to another policy (such as a Business Owner's Policy).

Cyber Liability Insurance Quotes for Restaurant Owners and Other Food Services Businesses

Cyber Liability Insurance Quotes for Restaurant Owners and Other Food Services Businesses

When you are ready to get Cyber Liability Insurance quotes for your restaurant, contact an insureon agent or fill out and online application to receive your insurance quotes in your email inbox.

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