Cyber Liability Insurance: What It Is and How to Keep Your Costs Low
With numerous high profile privacy breaches gaining widespread attention, you may have increasingly heard about cyber liability insurance, but not quite understood how it works or what it offers.
Cyber liability insurance provides coverage specifically for electronic business data, which is not typically covered under most standard business insurance policies. A cyber liability policy is most often used to cover things like:
- Spreading of viruses or malicious code
- Data loss resulting from business interruption
- Security and privacy breaches
The cost of a cyber insurance policy is determined by the type and volume of data that needs to be covered. Risk is also a key determinant of cost. So the more you’re able to reduce risks to your digital information with a data protection plan, the less you potentially pay for your cyber insurance policy.
The importance of data protection
A data protection plan outlines systems and processes for preventing the loss of electronic information from the following:
- Unauthorized access
- Natural disasters
- Application, software or hardware failures
In addition to having systems and processes in place, backup and recovery capabilities are also critical components in a data protection plan. Key business data should be regularly copied to storage media, such as magnetic tapes or hard drives, so that it can be quickly restored if lost.
Safeguarding and managing backups
When assessing your business data protection plan, an insurance representative not only determines if you have a backup strategy in place, but also whether your backup data is properly preserved and protected. Since a fire, flood, theft or natural disaster in your office may result in the loss of critical backup information, your risk exposure will be determined to be greater if backup media is stored within your facility. Because of that, backup data should be stored in a secondary off-site location such as a media vault.
A media vault offers the ideal off-site environment for protecting and managing backup media in support of your data protection plan due to:
- Fire-resistant construction
- Temperature and humidity monitoring
- Video surveillance
- Access control
Tape management software allows for all media stored in the vault to be continuously tracked for on demand retrieval.
How your electronic data is handled and transported is also a factor in a cyber liability risk assessment. An offsite media storage solution is supplemented with a data tape rotation service which enables backup media to be securely transported to and from the media vault. All media is picked up and delivered at times that coordinate with your backup schedule. Specialised containers are used to protect tapes and other media from the elements, and strict chain of custody procedures are followed at all times to eliminate theft risks.
When applying for cyber liability insurance it is likely that your suppliers will also be thoroughly examined. Therefore, make certain you choose a reputable data protection service provider who is willing to have its processes, facilities and staff verified for integrity and thoroughness.
Archive Document Data Storage (ADDS) provides data protection solutions for businesses throughout London, Bristol, Bath, and Swindon. For more information, please contact us by phone or complete the form on this page.