Overlooked Exposures in the Golf Industry: Cyber Liability

If you're a golf course or country club owner, you know that there's a lot to think about in your day-to-day management. But maybe you haven't thought about cyber insurance as part of your risk management plan? That's a mistake.

Cyber Liability continues to be a hot topic in the golf and country club industry – how do you properly protect and insure the assets you’ve been entrusted with? To state it bluntly, by the words of a Club CFO…”We don’t have Cyber Liability insurance and it keeps me up at night.”

Download our detailed Cyber Security Planning Guide designed to help employers protect their business, information, and customers from cyber threats.

Compared to Fortune 500 companies, golf and country clubs are particularly more vulnerable because the size of the organization often translates to a lack of resources to quickly respond to an attack. An unnerving thought - threat actors (“hackers”) - often gain access into your systems and may hide there for months - much like a predator waiting to ambush – until the right time to maximize the attack and exploit any insecurities.

Does your Club have computers or store data? Of course you do, and that’s exactly why it’s critical to protect your network. It can be argued that the weakest link in an organization’s security fence are your employees. In considering that, we encourage you to review cyber exposures at your club, their effects on your finances, and to identify some steps to strengthen your employee security protocols and cyber hygiene practices.

For example:

• Upstream vs downstream exposure. Be aware of the impact a cyber-attack can have on your suppliers, partners, and clients.

*A phishing email compromise could allow a hacker to access the systems of your CPA or your high-profile member’s personal information such as online banking.

• Cyber threats are very real, and they can ruin a club's reputation—or even put it out of business. You don’t want to be “that Club” that had their reputation smeared in the community and golf industry due to poor or failed cyber practices. The damage in reputation is one factor, and the costs to alert the members, guests, vendors of a data compromise is another. Moreover, the cost to replace any damaged software/hardware becomes exorbitant – plus the loss of revenue when the systems are down and the Club cannot transact any charges or pay invoices.

*Did you know - Cyber policies often have public relations or “reputation management” coverage built- in to help mitigate these costs.

• The opportunity to work remotely created new vulnerabilities for an organization’s network. Every time an employee logs into your network, a hacker can be poised to pounce.

*Multi-Factor Authentication (MFA) provides one more layer of security for your network. Two crucial items to consider – it is reported that 99% of cyber attacks could have been prevented if MFA was in place, and many carriers will not offer a cyber liability proposal without evidence of MFA.

Just like a pilot with a pre-flight checklist, your organization needs to be ready to respond in the event of an emergency like a cyber-attack. Make thoughtful, proactive decisions BEFORE you are forced to make emotional, reactive decisions. Take steps now to fortify your network, but also be ready to respond collectively, efficiently, and swiftly.

To sum it up, Golf and Country Clubs need cyber liability insurance and cyber protection plans.

Cyber threats are very real, and they can ruin your business. The cost of a data breach can be devastating to your reputation, as well as your finances.

At Wells Insurance we offer cyber insurance policies for golf and country clubs that can provide coverage against cyber attacks, including ransomware and phishing attempts, plus tips, guides, and information to keep your Club ahead of the curve. If your risk management plan is missing this coverage, or if you have questions on your existing policy, please contact us today to get started on a plan to protect your business from cyber threats!

Download our detailed Cyber Security Planning Guide designed to help employers protect their business, information, and customers from cyber threats.

To learn more about our Golf program, we encourage you to reach out to our Golf and Country Club Account Executive, Brad Mickle by email or connect with him on LinkedIn. You can also reach him by phone at 910.251.5448.