Your Restaurant Doesn't Need a Side of Cybercrime

Your Restaurant Doesn't Need a Side of Cybercrime

Could your restaurant recover from a cyberattack? Does your restaurant have cyber liability insurance protecting it financially against cyber thieves?

Canadian restaurants need cyber insurance because they face risks of data breaches, cyberattacks, and other tech threats due to the popularity of digital payments and online ordering.

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What is restaurant cyber insurance?

Cyber liability insurance provides your restaurant with financial support if it suffers damage or loss because of a data breach or cyberattack, or if clients sue you as a result of the breach or attack.

Your restaurant may have weak or no cyber security defenses, making it an easy target for cyberhackers. Does your restaurant fall into this category?

You top questions about restaurant cyber insurance answered

How do I cyber proof my restaurant?

Nothing is 100% when it comes to protecting your restaurant against cyberattacks, but there are steps you can take to lower your risk of a breach.

Best practices include the following:

• Get cyber liability insurance for your restaurant
• Secure Point-of-Sale (POS) systems: Use end-to-end encryption for payment transactions, regularly update POS software and hardware with latest security patches, limit access to POS systems based on employee roles.
• Have strong password policies and multi-factor authentication (MFA)
• Train employees on cyber security awareness
• Make sure your Wi-Fi network is secure
• Update software regularly and regularly backup your restaurant's data

Should you pay ransom to cyber attackers if your restaurant is the victim of a ransomware attack?

Paying ransom to cyber attackers is generally not recommended except as an absolute last resort to avoid catastrophic disruption to your restaurant.

Here's why you should think twice before paying:

• There's no guarantee paying the ransom will restore data or operations. Hackers may take the money and not help recover your files.
• Paying encourages further attacks by financially supporting the cybercrime industry
• Paying a cyber ransom can damage your restaurants reputation, increase cyber insurance premiums, and affect your cash flow.

Why you should have cyber insurance

As a restaurant owner, if you accept credit, debit payments, and have financial information related to your business stored on computers, you could be at risk for a cyberattack or data breach.

You don't need to be a big restaurant or part of a franchise chain to be cyber hacked because cyber thieves can go for small restaurants as they try to stay under the legal radar.

What kinds of restaurants need cyber insurance?

All kinds and sizes of restaurants would benefit from cyber liability insurance:

• Local diners
• Franchise restaurants
• Chain restaurants
• Restaurants with online ordering, delivery integration, and loyalty programs
• Cafes and coffee shops
• Bars and taverns that serve food

Restaurants that process credit card/debit payments, store customer information, or rely on digital management systems should consider cyber insurance to protect against potential financial losses, legal liabilities, and business interruptions caused by cyberattacks.

How much does restaurant cyber liability insurance cost?

For smaller restaurants, standalone cyber liability insurance can cost around $500 to $1,000 annually, and some professional liability policies include a low limit (around $50,000) of cyber coverage for an additional $100 to $200 per year. Ask your Western Financial Group business insurance expert about cyber insurance for your restaurant.

In general, cyber liability insurance costs for Canadian restaurants typically starts at about $850 per year and higher for full coverage policies.

What can restaurant cyber insurance help pay for if a cyberattack occurs?

• Repair and restoration of damaged software systems
• Forensic investigations
• Legal advice and expenses
• Crisis management services
• A team to help respond to your affected customers
• Cyber extortion
• Regulatory expenses and fines
• Coverage for losses sustained due to a system outage resulting from a cyberattack.

Have there been any cyberattacks on Canadian restaurants or food companies?

There have been several cyberattacks that have targeted Canadian restaurants and food-related companies, such as food supplier Colabor (2025); Recipe Unlimited Corp restaurants including Swiss Chalet, Harvey's, and East Side Mario's (2018); and Tim Hortons (2018).

What are common vulnerabilities at restaurants for cyberthieves to exploit?

Common vulnerabilities include malware targeting point-of-sale (POS) systems, phishing attacks, unsecured Wi-Fi and smart devices, weak passwords, and outdated software.

What kind of cyberattacks could restaurants face?

Ransomware: Ransomware is a type of malicious software (malware) that restricts access to a computer system or data, usually by encrypting files, until a ransom is paid to the attacker.

Ransomware can be spread through phishing emails containing malicious attachments or links. It can also be distributed via drive-by downloads, where a user unknowingly visits an infected website that silently installs the malware on their device without their knowledge.

Phishing: Cyberattackers send fake emails, impersonating trusted people or organizations to trick people into performing harmful actions. These actions include clicking on malicious links that lead to fake websites designed to steal login credentials, personal data, or opening infected attachments that deploy malware. The attacker exploits trust and urgency to steal sensitive data such as financial information, passwords, or to gain access to accounts.

Malware: Malware is malicious software intended to damage, disrupt, or gain unauthorized access to computer systems or networks. It can monitor user activity and capture sensitive data like passwords or credit card numbers, then transmit that data to attackers. Malware types include spyware (which secretly spies on users), keyloggers (which record keystrokes), ransomware (which locks or encrypts files), and Trojans (which disguise themselves as legitimate programs to infiltrate systems).

Denial of service attack: A cyber hacker floods a restaurant website with more traffic than it can handle, making it impossible for legitimate customers to access the site.

To sum it all up

A cyberattack on your restaurant could be financially devastating. Restaurant cyber insurance financially protects you against breaches and attacks by cyber thieves. Can you afford a cyberattack that would disrupt the operation of your restaurant?

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5 FAQs

What are the biggest cybersecurity risks facing restaurants today?

Point-of-sale (POS) system attacks, phishing, ransomware, supply chain vulnerabilities, and risks introduced by cashless payments and digital wallets.

How does online ordering, delivery platforms, and loyalty apps increase cyber risks for restaurants?

These tools often involve third-party vendors with different security standards, creating potential entry points for cybercriminals.

What should I do if my restaurant suffers a cyberattack or data breach?

Have a cybersecurity incident response plan, work with cybersecurity experts, notify affected parties as required, and have cyber liability insurance for financial protection.

Could restaurant employee mistakes cause a cyberattack?

Yes, human error is one of the leading causes of cybersecurity breaches in the restaurant industry, often through actions such as:

• Falling victim to phishing or social engineering attacks by clicking on malicious links or attachments
• Using weak or reused passwords and failing to update them regularly
• Accidentally sending sensitive customer or employee data to the wrong recipient via email or unsecured messaging platforms.
• Mishandling of sensitive or payment data, including improper access or sharing within the team.
• Using outdated, unauthorized, or unpatched software which cyber criminals exploit

Is cyber insurance for restaurants expensive?

Restaurant cyber insurance is generally considered affordable when compared to the potential financial losses from a cyberattack. On average, Canadian food and beverage businesses, including restaurants, can pay about $145 per month for cyber liability insurance, but this can vary based on factors such as business size, data sensitivity, and security measures. Ask a Western Financial Group business insurance expert about cyber liability insurance for your restaurant.