The repercussions of improper data protection can land businesses in legal trouble.

Fear of data loss prompting greater investments in security, insurance

Stephen Perkins

Unfortunately, many organizations are starting to learn a lesson through fear.

The major security breaches that recently occurred at retailers such as Neiman Marcus and Target continue to be brought up in the news. With the ramifications of these events receiving public attention, many companies are beginning to look for ways to mitigate the fallout should they be targeted. According to Boston Globe contributor Deirdre Fernandes, this effort in disaster recovery is appearing increasingly in the form of purchasing insurance – one in three companies are now protected by cyber insurance policies.

"A decade since it was first introduced, cyber insurance has graduated from a splurge to a necessity propelled by a series of high-profile data breaches that have cost companies many millions of dollars," she said.

The costs created by cyber insurance are frequently felt on the customer's end, which can be frustrating – prices go up to reflect the mortality of their information, so to speak.

This development is important because even though there are other ways to insure information, it is still a major signifier of how information security is being increasingly viewed. A conception that is becoming common is that data breaches are an inevitability. In addition to taking preventive measures, companies need to build disaster recovery strategies that treat successful attacks as looming.

Offsite backup is insurance in itself
If companies acknowledge that malicious hackers could strike at any time, they are able to better prepare themselves for when they inevitably do. There needs to be a backup in place should the original copies of files be compromised. If strong, data-level encryption and remote backup are used together, businesses can stay running with a greatly diminished chance that leaked information will be accessed.

While insurance should be sought out if specific data compliance laws call for it, purchasing a policy is a very small piece of the total disaster recovery puzzle. It is important to consider offsite backup in order to maintain operations should trouble arise.

Categories: Data Compliance, Data Protection, Disaster Recovery, Online Backup