Specialty insurer Sector Associates has introduced a cyberattack insurance product for businesses in the hospitality sector.
“Nowadays so many hospitality businesses rely on online bookings, enquiries from websites or even from social media pages, and it is these bookings and leads which are the revenue drivers for them and of course enable each business to plan rosters and food/drink requirements,” said Sector Associates managing director Jamie Jenkinson, as quoted in a report by Bar Magazine.
Jenkinson said Sector Associates wanted to create a policy that would enable businesses suffering from a cyberattack to replace computers; pay out compensation for missed bookings; use PR to manage negative comments; or pay ransomware demands.
According to the report, the new offering – underwritten by a Lloyd’s underwriter – can be taken as a stand-alone policy or added to an existing policy when renewing.
“It is easy to appreciate the damage this [cyberattack] can do to a business when online bookings and online reputation is key,” added Jenkinson.
A recent Lloyd’s report said a catastrophic cyberattack against a cloud server could cost as much as a devastating hurricane.
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