Even if you only have one computer in your business, that’s all you need. This single device can contain thousands of important pieces of information. It can also connect your business to the rest of the world. That’s a great thing, in so many ways—until a problem occurs. Every year, thousands of businesses experience data losses, or worse, a theft of their data. The results of either occurrence could easily put the business, employees and clients in harm’s way. To help mitigate these losses, you might need cyber liability insurance. However, you also need to establish proper data protection. Here’s how you can do so.
The Benefits of Cyber Liability Insurance
Cyber liability insurance protects your business, its data and other assets in cases where there’s a loss. A loss might result from anything from a sudden system failure, to an event (such as a fire or burst pipe) that damages computer systems. Even worse, private information might get stolen by hackers or ransomware attacks, which could put multiple people in danger.
If your business has a cyber liability insurance, the policy can help you pay for the recovery of data, and the reinforcement of your systems. Furthermore, it can help you cover the losses related to the exposure of private data. For example, when losses occur, coverage can help you compensate third parties, like customers, with assistance like identity theft protection.
Protecting Your Data
Yes, it’s certainly important that your business has a cyber liability insurance policy. However, what’s also important is that you try to minimize present data risks as much as possible. You won’t be able to prevent the most-sophisticated hacks or losses; however, you can make it harder by investing in good data security systems and practices.
- Back up your data regularly. Use an encrypted cloud service or separate hard drive to protect these items.
- Invest in strong virus scanning and malware monitoring software.
- Keep sensitive information stored behind password blocks, and never share passwords with others. Require employees to either create their own online log-in information, or agree to keep information confidential. Change your passwords regularly.
- If you aren’t a computer expert yourself, consider hiring someone who is. You might be able to hire your own IT professional, or work with a service provider who can safeguard your data and run regular checkups on your systems.
If you ever suspect that your online data might be compromised, the immediately take steps to secure the information. Work with a professional to restore your data or try to stem the tide of data theft. If necessary, contact your cyber liability insurer, who can help you determine if you can file a claim for your losses.