—24/05/16
Hospitality Cyber Risks

Hospitality businesses need to be CyberSAFE. Do you have the right insurance solution?

In the rapidly advancing world of technology cybersecurity poses an enormous and immediate threat to all businesses, and hospitality is certainly no exception.

With the huge increase in online attacks and hackers infiltrating business databases and IT systems, forward-thinking hospitality businesses are taking proactive steps to manage their cyber risks for good reason. In today’s hyper connected environment every company irrespective of its size relies heavily on technology and connectivity to operate its business. Yes some will be more reliant than others but ask yourself this simple question, “What effect would there be on my hospitality business if our computer network security was comprised?”

In virtually every case the answer to this question is, there will be a financial cost. It could be lost revenue from being unable to open for business, it could be damage to reputation arising out of a breach of confidentiality and possible liability associated with this or it could simply be there are significant costs associated with cleaning the network up and getting it back running again.

Last month Prime Minister John Key unveiled plans for a special unit to fight cybercrime and online espionage. He said: “Businesses needed to accept cybersecurity poses an enormous and immediate threat. It’s crucial they take steps to protect information vital to their day-to-day functioning.”

 

Restaurants, hotels, cafes and bars around the country accept millions of dollars in electronic payments each year. Any online presence can allow hackers to tap into systems and steal business intelligence and intellectual property. Cybercrime has no borders. In addition any hospitality business has an exposure to liability if the personal financial information or for example supplier partners data is compromised. The risks include the potential cost of having to notify customers or suppliers whose data has been compromised. The cost of any ransom is also covered.

While new threats are always emerging, hospitality businesses should deploy robust data safeguards and procedures to mitigate the cyber exposures. These should include assessing procedures for how the data is collected, as well as where and how it’s stored. If a third-party stores the information, it’s crucial to understand their security procedures and to evaluate their insurance coverage.
It’s not only hackers who pose a threat. Basic human error, disgruntled ex-employees, poor processes and sub-standard technical infrastructure can all cause problems.

To meet these emerging threats Crombie Lockwood has exclusive New Zealand rights to CyberSAFE, a new cyber insurance policy, designed to protect small to medium businesses from the costs of an attack.

Nick Tremewan is a specialist hospitality insurance broker for Crombie Lockwood in Christchurch.

To make an enquiry about CyberSAFE for your business Click Here 


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