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Written by Adam Miller
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Common Misconceptions About Cyber Liability Insurance for Restaurants

Restaurants of all sizes face various liability risks, whether it's employee injuries, customer accidents, or food-related liabilities. One risk that is growing for many restaurant owners is cyber liability, which occurs when sensitive customer data is accessed or stolen by hackers, or when secure company networks are compromised. A breach in data can lead to angry customers or vendors because of the loss of valuable data and financial information. Over 50% of all businesses have been impacted by cyber theft or data breaches, including restaurants. In today's Aegis blog post, we look at some of the common misconceptions regarding Cyber Liability coverage, and explain why restaurants shouldn't be without it.

Restaurants Don't Have Cyber Risks

One primary reason for restaurants skipping Cyber Liability coverage is the false assumption that they don't have any cyber liability risk, presuming it to be more for banks or financial institutions. In reality, if your restaurant accepts credit card payments, does online banking, or has a company network or website, any of these can be hacked, along with the customer data stored within it.

Cyber Liability Insurance can help cover the costs associated with these data breaches, such as notifying affected customers, credit monitoring services, or the restoration of valuable network systems. Without Cyber Liability protection, restaurants would face dealing with these costs solely out of pocket.

Cyber Breaches Cause Minimal Issues

A common misconception regarding cybercrimes and data breaches is that they cause minimal damage to businesses and aren't worth worrying about. The truth is that data breaches not only impact customer and business financial records, but they can also lead to costly and time-consuming credit repairs and monitoring for many months afterwards. In addition, a data breach can lead to the loss of valuable company data and sensitive emails, such as trade secrets, restaurant recipes, or personnel records.

Most importantly, a cyber breach can lead to long-term damage to a restaurant's reputation, which can be difficult to repair and restore. If customers discover that their credit card or customer data is hacked, then the restaurant is likely to lose those affected customers for life. Building trust is an important step in making first time customers become repeat customers, so restaurants should do all they can to prevent cyber theft, but also have the pieces in place to immediately make it right for the customers if data breach does occur.

General Liability Coverage Is All You Need

While General Liability Coverage is a business-critical policy for restaurants, it does not protect against all liability risks, including Cyber Liability Insurance. General Liability focuses on protecting businesses from lawsuits, medical damages, and attorney fees, and does not offer financial protection or assistance when cyber-attacks or data breaches occur. Much in the same way General Liability does not cover losses of company property or commercial vehicles, it will not be a help if hackers or cyber thieves breach valuable data.

If you're a restaurant owner, it's important to evaluate adding Cyber Liability to your portfolio of Commercial Insurance policies. Aegis Insurance & Financial Services helps restaurants across the Gulf Coast region get the business insurance needed to protect the business and employees when disaster strikes. In addition, Aegis can create a customized insurance package tailored to your unique industry and financial needs. Contact Aegis today at 713-850-7622 for more information or fill out our online form for a free quote!

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