Has your business moved to the cloud? That means you have information, data, and operations managed in a virtual cloud rather than just on a desktop computer. There are benefits to this. However, there are also risks.
As a business owner, be sure you have adequate business insurance to minimize risks. For the cloud, the biggest risk is cyber theft.
Are You Responsible?
Let's say you store your client information in the cloud. Someone breaks into it. They virtually access this client data. Now, there is exposure to your client's sensitive information. Could you be liable for that loss of confidentiality? The answer here is yes, you can be. Business insurance can help, to a point.
Doesn't the Cloud Make Data More Secure?
It is true that moving sensitive information into the cloud, or using cloud computing, can make it safer. This is one of the reasons many people use the cloud in the first place. This added security comes from third-party vendors. When you use the cloud for managing your business data, you generally use a third-party vendor to manage it. That vendor provides the security. The best of these companies ensure security is their top priority. However, there are still risks present.
What Is Your Liability Risk?
Companies utilizing services like this still have some level of liability risk present. That is because you are sharing responsibility between two organizations for protecting data. Now, your business and the vendor can be responsible for losses. This usually includes breaches of that data by a third party. What's more, this type of ownership of information and shared responsibility complicates claims. It can be hard to know who is responsible for the losses.
How Can You Protect Your Business?
The best way to protect your business is to ensure you have ample cyber-security insurance. Your basic business insurance policy may not be enough. It may provide only some of the support you need if there is a breach of this information. For this reason, businesses need to improve the amount of cyber-security protection they have. And, you need to verify that you are working with a reputable company for cloud services. There is no way to eliminate all risk. It is possible to use your business insurance to cover those instances of threats if they occur. Call us to get a Florence SC business insurance quote at 843-519-2557.