A new insurance product has been launched to help bars and other hospitality businesses deal with the threat of cyber-attacks.
The new policy has been created by hospitality insurance specialist Sector Associates, underwritten by a leading Lloyd’s underwriter, because of the increasing risks to businesses and the attack on the NHS.
Jamie Jenkinson, managing director of Sector Associates, said: “We wanted to create a policy that would enable any business affected to be able to replace PCs, pay out necessary compensation for missed bookings, use PR to manage any online or offline negative comments and pay any ransomware demand – safe in the knowledge that the business is covered for this risk.”
“Nowadays so many hospitality businesses rely on online bookings, enquiries from websites or even from social media pages and it is these bookings and leads which are the revenue drivers for them and of course enable each business to plan rosters and food/drink requirements.
“Cyber-attacks remove the ability to see this information. They more often than not will seek to deny you access to your system and your files. It is easy to appreciate the damage this can do to a business when online bookings and online reputation is key.
Aimed at all types of business within hospitality, Sector’s Cyber-Attack policy can be taken as a stand-alone policy, with prices starting at just £150 per annum or added to a policy at the renewal stage.
A Lloyd’s of London report has stated that claims for cyber-attacks could cost the global economy more than any natural disaster, including the devastation caused by Hurricane Katrina and Sandy.
Inga Beale, chief executive of Lloyds said: “This report gives a real sense of the scale of damage a cyber-attack could cause the global economy. Just like some of the worst natural catastrophes, cyber events can cause a severe impact on businesses and economies.”