That cross-industry combination is also what puts the inebriation artists at risk of a cyberattack.
“If you look at a winery, lots of high-end wine is sold through wine clubs, I belong to that winery’s wine club, I get shipments three times a year and they have my personally identifiable information,” Chasin said.
“They’ve got my date of birth, my address, my credit card information and they automatically process that transaction and send me my wine. There was a claim in Napa Valley that affected a number of wineries and it was just that scenario.”
With breweries, many of them sell t-shirts and paraphernalia online, but the instore sales are also an exposure.
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“We analyze risk, suggest coverages and we talk about proper limits. It’s happening in property, it’s happening in liability, it’s not happening in cyber,” Chasin said.
“There are endorsements that are typically added to the package policy, for very little premium that provide sub-limits for a variety of these coverage costs - it’s not an insurance premium thing it’s a lack of communication thing.”
Pak Insurance Programs points to a 2016 Verizon study that found point of sale intrusions were the second-most common cyber breach, and Chasin identifies a lack of chip program compliance as a significant vulnerability for breweries and wineries.
In addition, Chasin alluded to an incident where a chain of breweries were victims of tax return fraud.
Several employees received a deceptive email from an account they believed to belong to a CEO requesting all the W-2, wage and tax statement information.
Chasin’s advice for avoiding hacks involve maintaining systems, communicating with employees about document control, restricting access and authorization.
“It takes an analysis of exposures on cyber similar to what an insurance broker would typically do on the property and liability side,” Chasin said.
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