Hotels and Cyber Risk

Written by on 10/28/2015 10:00 AM . It has 3 Comments.

In early 2015, the White Lodging Services Corporation, a franchisee of hotels including Marriott properties based in Indiana, reported a seven month long cyber breach. It's every hotel owners worst nightmare. Following a malware issue they believed had been corrected, the point of sale systems for food and beverage locations at 10 properties were insecure and fell victim to a cyber breach. The names, credit card numbers, expiration dates, and security codes from credit card purchases were obtained in the breach. The company was not completely blind to the need for security measures. They believed they'd handled the malware issue in 2014 appropriately, by contracting with a third party security vendor. Unfortunately, it wasn't enough to stop the data breach that affected countless guests and customers who had stayed on one of their properties. Hotels are at a greater risk of data breaches and other cyber-related attacks, which makes having the proper insurance coverage in place all that more important.

Cyber Risk and Data Breaches at Hotels

Thanks in part to a high dependency on electronic processes, computer networks, third party sites and vendors, as well as mobile transactions, the risk of having your hotel's information stolen and your security breached is higher than you may think. With the amount of data collected from hotel customers, hackers and thieves almost can't help themselves. For hotels, a data breach comes with a high cost:
  • Notifying everyone in your database – all past, current, and future guests who've had their information entered into your system
  • Providing potential victims with credit monitoring services for a specific period of time
  • Lawsuits
  • Loss of reputation and business
Precautions You Can Take to Protect Against Data Breaches There are plenty of things you can do to protect your hotel and your guests from a breach. Make sure data safeguards are in place with your internal systems. Know and understand the security procedures for any third party vendor you use and work with. Follow standard hiring practices to guard against internal problems from dishonest employees. No matter how much you protect your hotel, a data breach is still possible. Cyber liability coverage will protect you, your hotel, and your guests if (or when) data is stolen and your customers are put at risk. This coverage offers very specific protections that become costly in a breach:
  • Notifying customers
  • Credit monitoring
  • Forensics to find the cause and/or those responsible for the breach
  • Coverage against third party liability
These issues aren't covered in a basic general liability policy. You'll need to have an additional rider or policy to include coverage for data breaches and any other cyber liability. If you’re worried about the additional cost, try to imagine what it would cost to properly notify every single person who's ever stayed at your hotel that their information may be compromised. Doesn’t seem so bad now, does it? Here at Charlotte Insurance, we want to see your business grow and thrive for many years. In order to do that, you must protect yourself from the very real risks of doing business, one of which is the threat of a data breach. When you're ready to look at additional coverage for your hotel, or if you just have questions about your current coverage, contact us.


Got something to say? Join the discussion »
  1. yaling45's avatar yaling45 stephen curry shoes pandora rings fitflops clearance puma slides ultra boost red bottom shoes yeezy 950 longchamp pandora charms kyrie 4 kate spade backpack salomon lebron 10 birkenstock sandals nike vapor max fitflop sandals hermes birkin bag nike vapormax ultra boost adidas ultra boost mens jordan 6 kd 10 pandora jewelry jordan 7 air huarache
    Reply 4/29/2018 11:39 AM
  2. yanxia39's avatar yanxia39 longchamp backpack kyrie irving shoes adidas nmd pandora bracelet adidas yeezy jordan 11 retro kate spade purses puma sneakers mens birkenstock sandals fit flops nike air max 2017 lebron james shoes kd salomon shoes christian louboutin sneakers pandora jordan 4 nike air vapormax flyknit fitflop shoes air max ultra boost mens pandora jewelry official site yeezy boost hermes birkin curry 1
    Reply 5/13/2018 12:38 PM
  3. yanxia39's avatar yanxia39 adidas originals nmd new balance 574 burberry scarf pandora jewelry official site pandora rings nike vapor max chrome hearts t shirt moncler jacket womens nike air max 95 nike kd bvlgari ring lebron shoes air max 270 adidas superstar mens pandora goyard tote yeezy ugg slippers jordan 11 nike shoes ferragamo shoes skechers boots yeezy shoes air max 97 mens moncler birkenstock sandals pandora jewelry puma shoes ultra boost Adidas Yeezy adidas ultra uncaged mulberry bag birkenstock nike vapormax nike air max 2018 cartier bracelet moncler coat fitflop ferragamo shoes huaraches supreme shoes balenciaga sneakers mulberry bag nike air max 95 air max 95 black nike vapor max oakley prescription sunglasses nike air max 270 women kd 10 pandora earrings michael kors purse kd shoes jordan retro 11 burberry scarf asics shoes prada purse cheap oakley sunglasses ugg boots salomon speedcross 3 pandora rings pandora rings james harden shoes chrome hearts clothing adidas originals nmd moncler jacket womens polo ralph lauren outlet nike vapormax ecco mbt shoes yeezy boost 350 celine,celine bag nike air max 95 mens nike air force 1 Salomon Shoes hermes belt fitflop sandals under armour shoes moncler jacket womens ed hardy adidas originals ultra boost christian louboutin air jordan salomon xa pro 3d north face outlet lebron james shoes yeezy boost 350 v2 swarovski pen yeezy shoes air max 97 gold goyard bag yeezy boost 350 barbour coats swarovski bracelet salomon speedcross 3 pandora necklace true religion christian louboutin air jordan ralph lauren polo shirts mcm wallet ugg slippers ray ban eyeglasses kyrie asics mens running shoes skechers women huarache kate spade bags ray ban sunglasses ralph lauren, polo kate spade outlet ralph lauren outlet coach wallet under armour stephen curry adidas chrome hearts ring space jam 11 north face coats lacoste shoes Hermes Wallets nike outlet adidas nmd r1 nike air max balenciaga longchamp jimmy choo supreme shoes nike air max 95 nike air max 97 curry 4 longchamp bag pandora charms mont blanc sale uggs on sale barbour outlet christian louboutin mk handbags louboutin jordan 11 air max 270 true religion fitflop shoes Pandora Bracelet valentino heels pandora bracelet coach purses skechers outlet mcm ray ban glasses adidas yeezy fitflop sale moncler coat ray ban burberry prada purse kate spade purses air max 270 pandora charms kyire 4
    Reply 8/1/2018 6:59 PM

Leave a Reply

 [Quick Submit with Ctrl+Enter]

Remember my details
Notify me of followup comments via e-mail