A lot of articles have been written about data breach liability coverage, or insurance for big data because these types of criminal activities are having a serious effect on businesses and the individuals they serve. The fact is that these concerns are valid and the intrusions are happening at an alarming rate. It affects many different types of businesses, and without insurance solutions, your clients can end up in huge financial trouble.
Data breaches have become so common that everyone, whether operating a large corporation, or a smaller to mid-sized company, is feeling the sting, and government entities are also targeted for obvious reasons. This is the reason that more companies are purchasing cyber liability policies as part of their overall business insurance package, especially since gaps exist in most basic insurance plans.
Cyber breaches cause serious reputational damage to local businesses
For small and mid-size businesses, two of the biggest concerns regarding cyber attacks or data losses is the possibility that a such an intrusion will result in confidential materials being lost, along with many business assets, causing severe damage to your clients or others from whom they have collected this private information. These are both major exposures and the damage a company ensures to their reputation can have a lasting negative effect. Clever cyber thieves can find ways to garner this valuable information, so all businesses storing private or classified information remain at risk.
One important thing to remember is that not all hacks are external. The threat can just as easily come from within as a result of computer hacking, employees throwing away, or using or selling sensitive information, as well as lost or stolen computers and other devices used for storing this valuable information.
Inform your clients that, if their company stores old computers to be eventually disposed of, they should first take the time to adequately wipe data from these devices, or get proof that recycled devices were erased, or sensitive information could easily wind up falling into the wrong hands.
The costs can add up pretty fast, and the reputational damage is something they can ill afford, so make sure that insurance for big data is part of their business insurance plan to give them the added protection they need.