Is Your Organization Properly Classifying Data?

Despite the fact that most businesses now operate at least partially in the online world, a surprising number are not aware of the importance of properly classifying data. An astonishing 37 percent of organizations do not have a system in place for data classification according to Risk Management Magazine. And the legal and financial ramifications of a breach can be astronomical for companies that are not taking the proper precautions.

cyber liability for nonprofits

Source: watcharakun via Freedigitalphotos.net

Data classification involves categorizing the information your company collects into levels of confidentiality. For instance, health information would receive a higher priority than a database of zip codes. Since most companies process massive amounts of data during the course of business, it is not feasible to provide maximum security over all data collected. Classifying your data allows the most sensitive data to be highly secured while the less risky data is protected by the usual means for your internet access.

Information management and a key data policy should be implemented by all businesses that store data using the web. In a survey conducted by Protiviti, as many as one in four companies do not have a written data policy and one in three do not have proper encryption set up to protect their data. If a breach were to occur, companies without a key data policy or encryption software would not be able to target what information was stolen and mitigating damages would be next to impossible.

On a more positive note, Protiviti’s detailed report shows that 67 percent of businesses are more aware of the dangers of unclassified data and are making improvements. It also shows that while encryption is not as popular as it should be, record retention practices and usage regulations are in place at more than 80 percent of the companies surveyed.

Lamb Financial Group offers nonprofit risk management services including the proper insurance policies for all of your cyber security needs. Call us at 866-481-5262 or contact us for more information on how we can help you protect your organization’s valuable data with a cyber security insurance package.

Reasons to Avoid Lapses in Insurance Policies

As the leader of a non-profit organization or business, you’ve got a lot of responsibility on your plate. From board meetings to fundraising efforts, it can be easy to forget other aspects of operations. However, when it comes to insurance, you never want to forget your policy end dates; otherwise, you could face a lapse in coverage that can quickly turn costly.

nonprofit insurance

Car accidents can be costly to recover from if an insurance policy has ended or been terminated.  Source: David Castillo Dominici via Freedigitalphotos.net

A lapse in coverage might not seem too bad at first, but you should consider your risks before you let your insurance policies fall to the wayside. For example, “6 Gaps In Business Insurance That Can Destroy Cash Flow” shares the scenario of an employee using a company vehicle and being involved in an accident in which a surgeon is hit and as a result, his hand is injured and he can no longer use it to perform operations. Whether the policy was a commercial auto or umbrella policy, if it’s ended or been terminated, your business or organization could face paying a number of legal fees out of pocket in a situation that could have otherwise been covered through insurance.

In addition to costs that could result from an incident that occurred during the lapse of coverage, your insurer may require you to pay a fee to reinstate your policy (The Truth about Insurance). Additionally, a lapse in coverage of more than 30 days can forfeit any continuous coverage discounts your insurer offers. Furthermore, as Small Business Trends shares, if you had a policy with any long-tail coverages, you will lose that coverage, too.

Lapses in insurance coverage can also make it harder for you to obtain insurance for your business or organization in the future. And for those who have experienced lapses in coverage in the past and are still able to obtain insurance, “premiums will likely be higher,” (Small Business Trends).

The best thing you can do for your organization or business is to keep track of policy start and end dates so you’re never without adequate coverage for all of your needs. If you have an insurance end date in the near future or would simply like to review your policies and make necessary updates, contact Lamb Financial Group today at 1-866-481-5262.

Common Business Insurance Myths and Why You Shouldn’t Fall for Them

Often times, business owners have to consider ways to cut costs, but if you’re thinking about foregoing certain forms of business insurance think again. There are many myths floating around about business insurance that owners fall for everyday, increasing their overall risks tremendously.

So what are the business insurance myths you should be aware of and avoid? Let’s take a look at some of the most common myths running the rumor mill.

business insurance

Source: stockimages via Freedigitalphotos.net

My Business is Too Small to Need Insurance – If you don’t have a business insurance policy and face an accident, injury, or even a loss of life directly related to your business’ operations, you will most likely “bear the brunt” and be responsible for any associated costs. For a small business owner, this could mean losing your business and having to pay from personal funds. Just because your business is small doesn’t mean it’s at risk.

Workers’ Compensation Isn’t Necessary if You’re the Only EmployeeSome states, including New York, require all businesses to carry workers’ compensation even if an owner is the sole proprietor. In other states, workers’ compensation requirements will depend on the number of people you employ, the type of work your business does, and a worker’s classification (temporary vs. full or part-time).

We’ll Never be Sued Any business and any person can be sued, no matter the size of your business or how well it is or isn’t doing from a financial standpoint. Additionally, simply shutting down your business and ceasing operations won’t protect you from a lawsuit. “In a worst-case scenario, you could be required to cover settlements or judgments from your personal assets.”

Our Business is a Safe Business – And just because your business doesn’t pose a risk of exposing employees to hazardous materials or an infectious disease doesn’t mean you don’t need insurance. Even if your line of business isn’t considered “risky” you do need insurance in the event of a random accident in which an employee is injured or one in which your organization is held liable for damages.

Do you need to update your business insurance or adjust coverages? Contact Lamb Financial Group. We are an insurance broker offering insurance options for a range of businesses such as human and social services organizations. Visit our website for more information or to request a quote.