ProHost USA, a Minneapolis-based program administrator, has added a new data breach coverage endorsement to its package programs for fine dining, family dining and fast casual restaurants. The endorsement, written on admitted paper, is available immediately in 28 states with more states to be added in the coming weeks. Premiums for the endorsement start at $450 and vary depending on the coverage limits, deductible and annual restaurant receipts.
According to Strommen, a restaurant will likely have its own web site, a social media presence, an internet-connected computer network, and a point-of-sale system (credit card or e-check). The owner, manager or other employees may own laptops that contain customer information. Some restaurants have frequent diners clubs requiring customers to enter credit card information. These business tools may leave a restaurant exposed to risk that is not covered under a standard commercial insurance policy.
“Restaurants need data breach coverage and it is up to agents to educate clients about the exposures and offer the coverage,” stated ProHost USA President Heidi Strommen.
ProHost’s data breach endorsement also includes the services of a third-party vendor that specializes in data breach forensic research and handles necessary reporting that the policyholder may be obligated to perform in the event of a suspected data breach.
Since 1989, ProHost USA has offered insurance programs for restaurants through independent retail insurance agents countrywide.
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