Specialist leisure insurance broker Sector Associates has warned that the threat of cyber attacks is not going away. As the Government announces plans to launch a cyber court, the Crime Survey of England and Wales estimates 3.6 million cases of fraud and 2 million computer misuse offences in a year.
The hospitality sector is not immune to this and with large amounts of personal data, online payments and dependency on computer networks for room keys, elevators, ventilation and booking systems the sector is particularly attractive to criminals both within the UK and overseas.
Jamie Jenkinson said “The insurance industry has reacted to the increasing risk and there are now a number of specialist cyber and crime policies available”. The cost of insurance policies can start at as little as £100 but not all policies provide the same cover and this is where Jenkinson anticipates problems “Whilst a policy is branded “cyber” it may not necessarily provide the cover the client needs or indeed thinks they are getting. It’s important to discuss your risk and exposure and make sure that the policy will respond in the event of a claim”.
Online scams or social engineering are examples of where standard cyber policies will not respond but cover can be provided by extending the policy or by taking out separate crime cover. “It really is an area where independent advice is needed” added Jenkinson.
Threats for the hospitality sector include:
- Phising
- Online scams
- Extortion
- Credit/Debt card cloning
- Unauthorised access to systems
- Data theft
- Fake reviews
- Hacking
Whilst there are many high-profile cases of cybercrime such as the alleged interference in the US elections, it is the SME market which is being targeted.
There are also potential regulatory fines to pay with the introduction of the General Data Protection Regulation (GDPR) in May this year. If regulators feel a business hasn’t protected customers personal data adequately a business could be fined up to 4% of turnover or €20m, whichever is the greatest.
“If you had discussed cyber risks with clients 5 years ago, they wouldn’t have given it much thought but now they have either suffered an attack or know somebody who has” added Jenkinson.
Based in Thirsk but with national coverage, Sector Associates provide independent insurance advice for the leisure and hospitality sector. Jenkinson added “The market is competitive, but we are able to improve the cover, including cyber and still reduce premiums whilst providing an in-house claims service”.
Sector have access to leading insurers and underwriters who understand the bespoke risks the hospitality industry faces.
To discuss your insurance requirements please contact Sector Associates on 01845 527428 or visit www.sectoria.co.uk