Every Business is at Risk of Data Theft

posted 7/1/2015 in Insurance

Cyber attacks, data breach, phishing scams - Information theft is a constant threat for business today.

Cyber crime is a growing problem that's not confined to technology companies and large corporations. The risks are very real for all businesses.

If you possess personally identifiable information of one employee or a single customer, you have a cyber exposure. The data doesn't have to be transmitted over a network, holding any personal information, even on paper, is a potential privacy risk.  Loss can occur as a result of unauthorized network access, lost or stolen mobile devices, malicious email or web links.

Minimize risks to your sensitive data:

  • Risk assessment:  Identify potential vulnerabilities and understand how your data is managed and secured. Conduct a thorough inventory of the kind of information you have, how much of it you have, where it is stored, and how it is accessed.
  • Educate your staff: Everyone should be accountable for managing cyber risks, include temporary workers and contractors. Train your staff on the protection and proper use of sensitive data. Include cyber security in employee on-boarding, emphasize the consequences of sharing passwords, falling for email phishing scams, exposing laptops and portable storage devices to theft, or neglecting to observe data security policies.
  • Know your vendors:  Take reasonable measures to ensure third parties have the capacity to protect shared information. Select only service providers that are capable of maintaining data safeguards equal to or better than yours. Consider contractual requirements to maintain such safeguards and require your vendors to show proof of insurance that protects you if they are the cause of loss.
  • Secure portable devices: Accidental loss and theft of laptops, smartphones and tablets are a leading cause of compromised data. Always encrypt portable devices to render data unreadable and unusable in the event of loss or theft.
  • Talk to your insurance agent: Proper coverage can mean the difference between managing a loss and losing your business. A recent Ponemon Institute study found the average security breach costs businesses almost $200 for each record that's stolen. A typical company breach can cost over $5 million.

LSB Insurance works with some of the leading providers of Cyber Insurance. Call us today to learn more about this important protection!

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