Target’s massive data breach this past holiday season, has developed a better awareness across the board regarding the vulnerabilities of cyberattacks. One lesson learned from Target’s data breach is that you need to be better prepared against a cyber loss. Note that most General Liability policies will not cover the financial losses associated with massive a data breach.
The following are a few risk management questions your business should continually review:
- What confidential info do you maintain in your electronic format? What security measures do you have in place to protect your data from inappropriate disclosure? Is this protection adequate?
- Do you have a document retention policy and do you follow it? What procedures do you have in place to discard properly and destroy files containing Personally Identifiable Information (PII ) and Protected Health Info (PHI)?
- Do you utilized the services of a third-party firm to convert paper documentation into electronic format or to store those paper files off-site? Do you receive the original paper files back or ensure their destruction? How secure are those off-site files?
- Will you be able to comply with California’s data breach notification requirements if there is a data breach in your business? Do you have a data breach response plan in place?
Being prepared and taking the time to protect your data will go a long way toward avoiding a costly data loss. Also, consider a Cyber Liability policy to help protect against the costly expenses involved in a Data Loss.
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*This is intended for informational purposes only and is not to be construed as legal advice.