Restaurant / Bars Blog

Cyber Liability – Why restaurants and bars need this coverage

Cybery Liability InsuranceAs the owner of a restaurant or bar, you probably use the Internet for many of your transactions. From purchases to customer databases to employee information, even the smallest “Mom and Pop” operation is increasingly using technology to make business easier and more efficient. However, these new technologies can also bring unexpected liability. A skilled hacker can gain access to company databases, stealing customer profiles, credit card information, employee social security numbers and other sensitive information. In 2011, members of a hacking collective gained access to and released the names and credit card information of 1,000s of customers of a popular security publication. The publication was found liable for the breach and forced to pay a settlement to each of the customers, costing the company millions of dollars.

Unfortunately, most general liability policies exclude all Internet-related liability claims. To protect your business from these types of claims, we encourage you to speak to your broker at Tegner-Miller Insurance about cyber liability insurance.

Below, TMIB has outlined a few of the reasons why cyber liability insurance is essential for restaurant and bar owners.

  • Business Interruption: Many cyber liability policies will cover business interruption as well as liability claims that result from a covered cyber incident. If you are unable to process transactions because your company credit card database has been breached, your policy can help cover your lost income.
  • Risk Management: Many small companies lack risk management plans when it comes to cyber security. When you purchase your cyber liability policy, your insurer may work with you to help make your databases more secure.
  • Non-hosting websites can still be liable: Even if you have secure technology practices, your company might not be exempt from cyber liability claims. If your website or data is hosted or stored in a cloud, your company could still be held liable if the cloud’s security is breached.

Please call us at 310-828-9662 to discuss your cyber liability insurance needs. You may also want to visit www.tmib.com for more information.