From private customer information to trade secrets, every business stores data that is essential for its everyday operations. But with the increasing push toward “paperless” offices, it’s essential to make sure that this data is kept secure. As a Risk & Insurance article reminds us, exposures – both internal and external – are continuously growing as a result of digital data storage.
Business owners need to first understand the exposures. For example, many business owners do not realize that their employees may be increasing the risk of data breaches unintentionally.
“The majority of data loss risks are associated with well-meaning employees inside the organization who inadvertently put information at risk in the course of their day-to-day activities at work.” (Information Systems Security)
These types of exposures are the cause for nearly half of all data breaches according to a cooperative study conducted by the Verizon Business RISK team and the United States Secret Service (McAfee). Symantec reports that in most of these cases, the employees are often unaware of the business’ data security policies and end up storing, sending, or copying sensitive information unencrypted.
Of course, there is also the risk of external data exposure. In many cases, external data exposure can be the result of a targeted attack. According to Symantec, over 90 percent of the data records breached in 2008 “involved groups identified by law enforcement as organized crime.” Computers and servers without the latest security patches, improper computer configurations, targeted malware, and email, web-based, and FTP systems with weak passwords are a few of the ways outsiders find their way in to steal sensitive information.
When sensitive information is hacked, a legion of troubles can follow. From lawsuits to losses in current and future client-bases, companies and organizations can take major hits (Small Business Trends). And if you don’t have the proper cyber liability insurance, you’re looking at expenses that could quickly run your company or organization completely dry.
Cyber liability is something every business needs in addition to safety policies and procedures for encrypting and limiting disclosure of information. Contact Lamb Financial Group at 1-866-481-5262 to learn more about the cyber liability insurance options that are available to businesses and nonprofit organizations.