Because hotels are a potential target for ransomware and malware attacks, Partner Peter Halprin urges hoteliers to consider cyber risk insurance. In an interview with Lodging Magazine, Halprin explains how cyber risk insurance can help businesses deal with the consequences if there is an attack.
Halprin acknowledged the challenge presented by the market, “The underwriting is getting more stringent. Businesses can’t just slough everything off and say we’ve got a cyber policy, we’ll be fine. They need to be up to standard so they can go get that insurance.”
Before shopping for a policy, he advises hoteliers to invest in cyber hygiene, security and incident response planning. “It’s best if businesses integrate their cyber security efforts with their insurance efforts. Hoteliers can protect their guests by recognizing the risk of data breaches and prioritizing a proactive action plan.”
Halprin added: “Hotels need to treat breaches as an inevitability. Insurance can be an important part of that larger program, but I would just caution that it’s for when everything else fails. That’s the purpose of insurance.”
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