Do You Need Data Loss Insurance?

Do You Need Data Loss Insurance?

High profile data breaches at Target, Sally Beauty Supply, and the Office of Personnel Management have brought to light the need for data loss insurance, especially when you have thousands of records from customers and clients. If you think that your small business is not at risk, you might want to reconsider your policy on that.

All businesses have private data that needs to be secured. It might be your employee’s information or customer’s credit cards, but you could also be a portal into a larger chain. Hackers use your lack of protection to gain access to larger vendors through your connections. Small to medium-sized businesses are often not as proactive as say, Amazon, to detecting threats, which makes it easier for hackers to gain access.

The National Cyber Security Alliance found that 60 percent of small businesses closed their doors within six months of a security breach of their records, which not only costs your business money but it also damages your reputation. Data loss insurance is one of your defenses against losing all that you’ve worked for in the event of a data breach. Find the right policy to fit your business and cover your assets in the event of a security threat. More importantly, get information on being prepared against hackers when you implement a data loss strategy by working with your insurance company.