Cyber Liability Risks Restaurant Owners Face O ver the last few years, franchises have become a favorite target of cyber criminals. Hackers have stolen password credentials, franchise business records and customer credit card data from some of the biggest names in the industry. The consequences of a hack are serious. Consider these recent statistics: • The average cost of a data breach for small- to mid-sized businesses was $105,000 in 2021, up from $101,000 in 20201. • Small businesses are three times more likely to be targeted by cybercriminals than larger companies2. • One in five organizations had at least one account compromised in 20213. If you are startled by these statistics, you’re not alone. A recent U.S. Small Business Association survey found that 88% of small-business owners felt their business was vulnerable to a cyber-attack.
3. Perform Maintenance and Updates Plan for software updates as systems age and make sure critical security update patches get installed right away.
Reducing your Restaurants’ Cyber Exposures
7. Add Cyber Liability Insurance Coverage A cyber security incident can have a far-reaching impact on your business, and the risk is always there, even with all the right protections in place. Cyber liability insurance coverage can help minimize your exposure, cover your costs and allow you to recover more quickly.
The risks of a cyber-attack are something you can’t afford to ignore. Most attacks are the result of a business being unprepared to handle common threats. By taking proper action, you will significantly minimize your risk. Implement these tips: 1. Protect Your Computer Systems Protecting your computer systems from these threats requires the right combination of tools. A firewall is essential to keep cyber criminals from accessing multiple systems through a single vulnerability. Antivirus software is needed to stop intrusions and sound the alarm if an attack is successful.
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2. Practice Good Password Security Always choose strong passwords, use different passwords for each system and update passwords that are old or compromised.
4. Schedule Regular System Backups Perform regular backups for any important data and systems. 5. Hold Cyber Risk Awareness Training Employees know they should avoid a suspicious email but spotting today’s most common phishing tactics is getting more difficult. Train employees on what to look for and how to stay safe. 6. Create a Cyber Response Plan Having a plan makes it easier to identify when there’s been a breach and gives you the tools to act quickly to minimize the damage.
Understanding Cyber Liability Coverage Like you have plans in place for business incidents of all kinds, Cyber Liability has coverage in place for cyber incidents of all kinds. • Your largest fryer goes out and causes your business to close. You call your go-to repairman to replace it. o Cyber Liability comparison: System damage and business interruption. When a computer system disruption prevents you from conducting business and results in the loss of income and extra expenses, Cyber Liability covers the cost.
