As your clients move into 2017, cyber risks should be one of their top priorities. What used to be a distant threat is now a reality for essentially any business. Since these threats are at an all-time high, your clients need to be proactive in protecting their business, the customer’s personally identifiable information, and their data. Therefore, as we explore the following risk management concerns, share the following with your clients and ensure their operation is backed by a customized Dry Cleaning Cyber Liability Insurance program.
The common risks.
Accepting credit cards as payment at a brick and mortar store comes with inherent risks. While the credit card company usually absorbs the fees associated with fraud, the dry cleaning business is not immune to risk. Naturally, any business accepting the card will still have some associated costs, such as the cost of processing the order, expended supplies or services, handling the charge-back, etc. It is a similar story in the card-not-presented world, only the merchant is typically the one paying for the fraud. It has also lost the services performed, all of the overhead costs spent on the order and, in many cases, a charge-back fee will have to be paid, explains American Dry Cleaner.
Further, there are severe penalties for compromising customer credit card data. Many merchant service agreements make the drycleaning business responsible for the expenses of forensic investigations, credit card re-issuance costs and the fraud conducted on the stolen cards, explains the article.
While a cyber breach can devastate a business financially, it can also have significant impact on a dry cleaner’s reputation. Any business who suffers a breach, depending on the severity, is required to notify authorities and the affected customers. Not to mention, social media posting exposes dry cleaners to further risks on top of cyber breaches including defamatory liability, leaked information and copyright infringement.
Lastly, third party data must be secured or else the dry cleaner can be held liable for those breaches, as well. In a digital age, these growing concerns must be backed with the right insurance policies. Without them, remind your clients that they are on the hook for all damages associated with breaches, not to mention the latent effects of lost trust and slowing business.
About Irving Weber Associates
At Irving Weber Associates, we are dedicated to your success. Our fundamental coverages provide the policies you need in order to be properly secured. Whether you need cyber protection or workers’ compensation for your laundry business, we can customize a policy suited just for you. For more information, we invite you to contact us today at 855-661-4557.