If you run a hotel, then you know you need to get certain forms of insurance to cover your establishment against risks such as fire, flood, and theft. But does your hotel need cyber insurance? Is your hotel really so vulnerable to cybercrime that you need specialist insurance to cover you against the risks?
Short answer: Yes. Your hotel absolutely does need cyber insurance. In this post we will explain why.
What are the cyber security threats for hotels?
Phishing attacks
A phishing attack involves sending a message, usually via email, which appears to come from a trusted source, such as a manager, a colleague, a bank, or an online retailer. These fake messages can trick employees into providing sensitive information, such as login details. This can give cybercriminals access to your system, which can leave you vulnerable to other types of cyber-attacks.
Ransomware attacks
With a ransomware attack, cybercriminals can encrypt your files remotely. You will be unable to access your online system until you pay a ransom. If you fail to make this ransom payment, the cybercriminals might simply delete your data, or they might choose to sell it to other cybercriminals. This will put you and your guests at significant risk of further financial exploitation.
Data breaches
If cybercriminals gain access to your system, they may simply choose to steal your data outright. This could result in significant financial and reputational losses for your hotel, while leaving your guests vulnerable to identity theft and financial exploitation.
Why do cybercriminals target hotels?
There are a few reasons why cybercriminals might choose to target hotels.
Your hotel is unlikely to have sophisticated cybersecurity measures in place, and it is unlikely that you have trained your staff to recognise the risks of phishing emails, and other forms of attack. This means that it would be easier for cybercriminals to access your system. It also means that you will not be able to adequately respond to a cyberattack.
Also, hotels tend to store a lot of sensitive data on their systems, including guests’ personal details, and even their credit card numbers. This sort of data can be immensely valuable for cybercriminals.
Finally, hotels tend to offer cybercriminals multiple points of attack. From your online booking systems to the devices you use to check in your guests, cybercriminals will have a choice of vulnerabilities to test and exploit so as to gain entry to your system.
How can cyber insurance protect your hotel?
Investing in staff training and cybersecurity can protect your business from cybercrime. But while such investments offer strong prevention, cyber insurance provides a reliable cure.
In the event of a cyberattack, cyber insurance can provide cover for customer data loss, for system breaches, and for any legal fees you might face following the incident. In this way, cyber insurance is crucial for helping your business and your guests recover from the devastating effects of a data breach.
At James Hallam, we can provide you with comprehensive cyber insurance cover as part of a wider travel and tourism insurance package.
Find out more about our cyber insurance for businesses as well as our comprehensive insurance policies for travel agents and tour operators.
For more information, call us on 0330 024 0755 or email enterprisenb@JamesHallam.co.uk.