Insurance coverage against cyberattacks and data breaches relating to the hospitality industry and hotels.
My former colleague, Ken Trotter, and I recently wrote an article titled, “Insurance Recovery for Loss or Liability Arising from Cyberattacks; Obtain and preserve insurance for your company’s protection.” It has been published in Hospitality Upgrade magazine‘s Fall 2011 issue. In the article, we discuss insurance coverage for data breaches, cyber risks, cyberattacks, and cyber events, in light the risks for such events that the hospitality industry, and hotels in particular, face. We discuss coverages for cyberattacks and data breaches against hotels and the hospitality industry under new cyberinsurance policies, and overlapping coverage with other insurance policies for data breaches, cyber risks, cyberattacks, and cyber events. We also discuss involving multiple people within the company to discuss the risks and evaluate the purchase of new insurance and cyberinsurance policies.
Here is a brief excerpt from the article:
It is no secret that the hospitality industry continues to be vulnerable to data breaches and other cyberattacks. . . .
Cybersecurity risks can cause a company to incur significant loss or liability. A data breach could result in the loss of important and sensitive customer information and, in some cyberevents, stolen company funds. Companies also may face liabilities to third parties under statutory and regulatory schemes, incurring costs to mitigate, remediate and comply with the liability under these statutes. Worse still, class action lawsuits have been filed around the country after data breaches, with plaintiffs alleging, among others, the loss of the value of their personal information, identity theft, invasion of privacy, negligence or contractual liability. . . .
Many businesses in the hospitality industry have undertaken important steps to reduce the likelihood of cyberattacks and to protect data and confidential information. Such measures are important, but equally important is understanding what insurance policies those companies have, or could purchase, to cover loss or liability associated with a data breach or other cyberattack. . . .
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