Cyber Risks in the Hospitality Industry
The hospitality industry strives to provide an exceptional and personalized experience for all of its guests. But in the digital age, this often comes at a cost: increased exposure to cyber threats. Hotels and restaurants collect large amounts of personal and financial data, and cybercriminals have taken notice.
Worldwide, a single data breach costs an average of $4.88 million in 2024, according to data from IBM. Arguably worse, it could have a lasting impact on the reputation of the restaurant, hotel, entertainment venue, or other hospitality-oriented business. At Ferrera Insurance Agency, we understand the cyber risks unique to the hospitality industry and offer coverage to protect your reputation.
Why Hospitality Businesses Are Prime Cyber Targets
Hospitality organizations manage an array of sensitive information across multiple platforms:
- Credit card and payment data
- Personal identification (passports, IDs)
- Personal phone numbers and addresses
- Loyalty program details
- Reservation and travel data
Because these businesses operate around the clock, day in and day out, often with minimal cybersecurity staffing, they’re viewed as easy, high-value targets.
Common Cyber Threats
- Point-of-Sale (POS) System Breaches
Attackers exploit outdated POS systems to steal customer payment data. These breaches can affect hundreds, sometimes thousands, of guests. - Ransomware Attacks
Hotels increasingly fall victim to ransomware that locks down booking systems or access to guest data. The impact includes lost revenue, damaged reputation, and interrupted operations. - Phishing and Social Engineering
Hotel staff, especially at the front desk or reservations, are frequent targets of email scams that aim to extract credentials or redirect payments. - Wi-Fi Exploits
Public Wi-Fi networks are standard in hotels and cafes and are common entry points for attackers if not properly secured. - Insider Threats
From disgruntled employees to poorly trained staff, insider risks remain a key vulnerability in hospitality cybersecurity.
Why Cyber Insurance is Critical for the Hospitality Industry
Cyber insurance can help hospitality businesses recover from attacks quickly and minimize financial loss. Key coverage may include:
- Data breach response (legal, PR, and notification costs)
- Loss of income due to downtime
- Liability for compromised customer data
- Cyber extortion and ransom payments
- Regulatory fines and penalties
The Ferrera Family’s Roots in Hospitality
The Ferrera family is no stranger to the hospitality industry. Over the past century, the Ferrera family has owned a modest tap, supper club, and an entertainment lounge along with a liquor store, apartment buildings, and other small ventures. Our team understands all aspects of the hospitality industry and how strong relationships can enhance success. In addition to cyber liability coverage, we also provide coverage for the following:
- Business
- Property
- Liquor liability
- Delivery
- Assault and Battery
- Non-owned auto for delivery exposure
- Spoilage
- Food contamination
- Employee dishonesty
As the hospitality industry evolves, so does the technology used to enhance guest experiences. With this technological evolution comes the detrimental risks to the hospitality industry. Contact our team today at (847) 802-8408 to learn how we can provide peace of mind with complete protection.