Why South Carolina Restaurants Should Have Cyber Liability Insurance

By Brad Davis, CIC (November 29, 2025)
Davis Insurance Associates – Myrtle Beach, South Carolina

---

A New Kind of Fire in the Kitchen

Imagine this: a Myrtle Beach restaurant can’t process credit cards for three days after hackers infect its point-of-sale system with ransomware. Customers get frustrated, sales drop, and data from hundreds of transactions may be exposed.
Unfortunately, this isn’t rare – it’s one of the fastest-growing risks facing restaurants today.

Just as you protect your property from fire or theft, your restaurant also needs protection from cyber threats. That’s where Cyber Liability Insurance for South Carolina restaurants comes in.

---

What Is Cyber Liability Insurance?

Cyber Liability Insurance (sometimes called Cyber Insurance or Data Breach Insurance) helps businesses recover from financial losses caused by cyberattacks, data breaches, or system failures.

For restaurants, that means coverage for things like:

• Credit card data breaches

• Ransomware or hacking attacks

• Lost income during system downtime

• Legal defense costs

• Customer notification and credit monitoring

Cyber policies typically include both:

• First-party coverage: for your direct losses, such as income loss and data restoration.

• Third-party coverage: for claims made by others, like customers or vendors affected by a breach.

---

Why Restaurants Are Prime Targets

Many restaurant owners think hackers only target big corporations. The truth? Small and midsized restaurants are often easier targets.

Here’s why:

• Credit card processing systems handle dozens or hundreds of transactions daily.

• Online ordering platforms connect to multiple third-party vendors.

• Wi-Fi networks are often shared between employees and guests.

• Employee mistakes, like clicking on phishing emails, can compromise the entire network.

• Loyalty programs and online reservations store sensitive customer data.

In tourist areas like Myrtle Beach, Conway, and North Myrtle Beach, the combination of high transaction volume and seasonal staff turnover makes local restaurants especially vulnerable.

---

What Does Cyber Liability Insurance Cover?

A well-designed cyber policy can protect your restaurant from a wide range of costs and disruptions. Coverage may include:

• Data Breach Response Costs: Legal guidance, notification letters, credit monitoring, and crisis management.

• Ransomware and Cyber Extortion: Payments and professional negotiators if your systems are locked by hackers.

• Business Interruption: Lost income and extra expenses during downtime caused by an attack.

• Legal Defense and Settlements: If customers or partners sue over lost data.

• IT Forensics and System Restoration: Recovering corrupted data and rebuilding systems.

• Regulatory Fines and Penalties: Where permitted by law, coverage for privacy violations or non-compliance fines.

These expenses add up fast, even a small breach can cost tens of thousands of dollars. Cyber insurance helps ensure your restaurant can recover quickly and keep serving customers.

---

How Much Does Cyber Insurance Cost for Restaurants?

Many restaurant owners are surprised at how affordable cyber protection can be.
Small operations with limited online exposure can often find coverage starting around $300 – $900 per year, depending on factors such as:

• Type and size of restaurant

• Volume of electronic payments

• Data security practices

• Prior claims or incidents

For most restaurant owners, that’s a small price to pay for peace of mind – especially compared to the cost of even a single breach.

---

Reputation Matters & Cyber Insurance Helps Protect It

Your restaurant’s reputation is one of your biggest assets. A single data breach can damage trust that took years to build.
Cyber Liability Insurance helps you:

• Respond quickly to customers

• Provide credit monitoring

• Manage public relations during a crisis

That quick, professional response shows customers you take their privacy seriously – and that your business is resilient, even when challenges arise.

---

Reducing Your Risk (and Premium)

Just like implementing safety protocols can reduce your workers’ compensation or general liability premiums, taking proactive cybersecurity measures can lower your cyber insurance costs.

Here are a few ways to reduce your exposure:

• Train employees to recognize phishing scams.

• Use strong passwords and two-factor authentication.

• Keep software and POS systems updated.

• Limit access to sensitive information.

• Back up critical data regularly.

• Work with trusted payment processors and vendors.

Not only do these steps improve your security, but many insurers offer discounts for demonstrating strong cyber hygiene.

---

Cyber Insurance in South Carolina

South Carolina has specific data breach notification laws that require businesses to notify affected individuals if personal information is compromised. That can mean legal fees, mailing costs, and PR expenses – all of which are covered under most cyber liability policies. More about notification laws from SC.gov.

Because restaurants in the Myrtle Beach area rely heavily on online payments, mobile orders, and guest Wi-Fi, they face a unique blend of cyber risks that shouldn’t be ignored.

For more general information from the Federal Trade Commission, you can check out this out about Cybersecurity for Small Business.

---

Partner with a Local Insurance Expert

Whether you run a cozy café in Conway, a seafood restaurant on the Grand Strand, or a bar and grill in Socastee, your restaurant depends on digital systems every day. Protecting those systems is now just as important as insuring your property or your employees.

At Davis Insurance Associates, we help South Carolina restaurant owners find affordable Cyber Liability Insurance that fits their operation – and we’ll do our best to explain your options in plain language.

Call us at (843) 213-0000 or request a quote online to learn how we can help protect your restaurant from today’s digital threats.