MONDAY, NOVEMBER 2, 2020
No matter what data you store on your business’s computer systems, any loss could be harmful in multiple ways. Not only might the business suffer, but so too might customers whose private information the business holds on its systems. As a result, it’s imperative that you both protect these systems as effectively as possible and have appropriate remedies for potential losses.
One of these remedies might be a cyber security insurance package. There are several types of coverage available, each of which can apply to various losses and liabilities you might face as a result of data security incidents. However, that doesn’t mean you shouldn’t do what you can to protect data.
Proper Commercial Data Security
Any breaches or damage to your data could cause significant financial challenges. Therefore, it’s in your best interest to always protect your systems through multiple risk management practices.
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Use strong encryption and security programs. These should include virus scanners, firewall protection, phishing blockers and other control systems.
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Require password access for all employees, and if necessary, assign different passwords to different users. You can also restrict access to certain areas based on an employee’s credentials.
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Train your employees in data security. Make sure they know that they should never share their log-in information or access risky sites or programs on the system. They should also know when to recognize that a data security incident has occurred and what to do to control of the issue.
The Benefits of Data Security Insurance
No matter how much you do to protect your data systems, it only takes an instant for a data breach to occur. Therefore, financial losses could accumulate quickly.
All the same, a quality data security insurance package can help you with some of the costs that might arise in these circumstances. The policy might pay for:
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Notifications costs accumulated because you might have to alert industry regulators and customers that the data loss occurred.
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Identity theft protection for third parties affected by the data losses.
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Business interruption costs, which reflect the revenue lost as a result of the breach.
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Costs of repairing data systems and recovering data lost in the breach.
Your policy will also cover certain instances of cyber crime such as ransomware attacks or impersonation schemes, where a dishonest party steals data from the company by claiming to be someone they aren’t. However, the policy won’t cover criminal acts committed by the business or by its employees.
Other losses, such as data transfer issues or issues that you had prior knowledge of, will not have coverage either. Therefore, it’s still imperative to do all you can to keep a strong data management program in place. By doing so, you might never have to face the risk of a data security incident.
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