More and more businesses are storing data on off-site service providers (known collectively as “the cloud”) to reduce costs and boost efficiency. However, many companies either don’t realize how vulnerable this information is, or don’t have contracts that make third-party cloud providers responsible for lost, stolen, or corrupted data.

If there’s a data breach when you’re using cloud-based services, who should be held responsible? Storing software and/or databases on the servers of a cloud provider with shared infrastructure immediately eliminates many of your cyber security controls. Backing up data in multiple locations increases the likelihood that it will survive, but also raises the odds of a data breach. What’s more, shared infrastructure can leave this information exposed to malware or other computer viruses.

What about connectivity? After all, your cloud provider can’t guarantee that you’ll have access 100% of the time. If the remote server goes down or there’s a data breach, how long might it be before you’re able to restore operations? How might such an incident affect your company’s reputation, and its financial position?

An effective Cyber insurance policy can reduce these risks significantly by:

  1. allowing you limit the spread of sensitive or confidential information by reacting to cyber extortion as soon as possible
  2. notifying your clients that their data has been lost
  3. hiring a PR firm to get out the message to clients about the measures your company is taking to prevent future breaches
  4. providing the ability to set up a data center
  5. reimbursing customers and clients for confidential information compromised by the breach

Tracy-Driscoll can help you select comprehensive coverage that can protect your data in the cloud.  Give us a call today at (860) 589-3434.

 

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