Data loss insurance and what companies need to consider

In October 2013, Adobe first reported that hackers had stolen nearly 3 million customer credit card records and credentials for an as yet unknown number of accounts. After a few weeks, the company raised its estimate to include IDs and passwords for 38 million users, and it appears that more than 150 million username-password pairs have been stolen.

The hack was found to have revealed customer names, IDs, passwords, and card information.

After a long and painful legal battle, Adobe had to pay legal fees of $ 1.1 million in August 2015. The company also had to pay affected users $ 1 million to settle claims for breach of the Customer Records Act and unfair business practices.

Yahoo suffered a data breach in 2013 and 2014 – which would be the most significant data breach in history. The attackers compromised the real names, email ads, birth dates, security questions and phone numbers of 3 billion users.

The violations have hurt the company’s value by an estimated $ 350 million.

Recently, Australian graphic design tool Canva suffered an attack in 2019 that exposed the residential cities, usernames, email ads, names, salted and passwords of 137 million users.

Loss of data is an ongoing threat to your business and can cost you tremendous depreciation. Regardless of what business you are in, you have data stored in clouds or on your hard drive and it can be compromised.

You need data loss insurance to recover from cyber breaches.

What does data loss insurance include and how can you make sure you have the right protection?

Beware of cyber crime

All companies process confidential data, be it special ingredients, a recipe, a unique system or a design. All intellectual property today is represented by data.

Data is one of your company’s most important assets. You need to take security measures to protect you from potential hacks and data loss. You need adequate data security and insurance, especially if your company stores your customers’ personal information.

Hackers attempt to steal personal information for fraudulent purposes. Bank account information, customer details, social security numbers, and credit card information are attractive targets for cyber criminals.

If this important data is breached, your users will face liability claims against your company and your company’s reputation will be seriously compromised.

Every business today needs insurance and protection against data loss.

Data loss insurance – what is it and what does it include?

Data loss insurance is a policy designed to protect and assist a business if it is a victim of a cyber attack. The insurance policy provides detailed protection in the event of a claim related to a malicious data breach or cyber attack.

Data loss insurance provides protection if a hacker is holding your company as a ransom. The insurer can take the ransom you have to pay the hacker and help you deal with the whole situation.

This insurance also offers practical support if a cyber attack takes place on your company. The policy should provide legal advice and forensic investigations while sending notifications to customers and regulators and assistance to affected users, including monitoring credit cards.

If a cyber attack targets a company’s systems and effectively prevents the company from generating revenue, the company could suffer a significant loss of income. Data loss insurance should compensate for this loss and the damage to the company’s reputation.

Here are 10 actionable privacy tips

  1. Keep your software up to date.
  2. Establish passwords for all of your computer networks.
  3. Encrypt your data.
  4. Use anti-virus software.
  5. Process only with accredited online shops.
  6. Implement a VPN or a virtual private network.
  7. Use Wi-Fi Protected Access 2 or WPA2
  8. Invest in premium file storage and distribution software.
  9. Hire an IT team to implement security measures.
  10. Conclusion of data loss insurance and legal assistance.

Keep your software up to date

Your operating system update not only simplifies the functions of your computer and eliminates errors, but also installs important security updates and vulnerability patches that protect you from malware and viruses.

Establish passwords for all of your computer networks

Every computer in your office needs to have unique passwords that you need to update at least once a month. Switching can slow down hackers trying to decrypt your passwords to break your network.

Encrypt your data

There are many encryption tools available that can be used to ensure that your data remains unreadable and secure. If hackers access your data, they cannot use the information because of the encryption.

Use anti-virus software

Viruses protect your computer from malware, viruses, and cybercrime. The antivirus software will run diagnostics on your data, including filers, web pages, software, and other data that is transmitted to your device over the network.

Antivirus software looks for threats and monitors the behavior of all programs. If it detects suspicious behavior, it flags the element in question.

Antivirus software is your basic protection against cybercrime and data loss.

Process only with accredited online shops.

Do not transact with stores or services that have not been verified by online security providers. Make sure you send information only to websites that are accredited by Norton, McAfee, TRUSTe, and others.

Implement a VPN or a virtual private network.

With a virtual private network, you have an offshore IP address and it is difficult for hackers to track your digital footprint. Use tools like NordVPN, SurfShark, ExpressVPN, and others.

There are excellent options for trustworthy VPNs.

Use Wi-Fi Protected Access 2 or WPA2

Using WPA2 ensures that only authorized users can access your wireless networks.

Invest in premium file storage and distribution software.

Use paid and premium cloud software or SaaS like Dropbox, JustCloud, pCloud, SpiderOak, IDrive, etc. Choose one of the most trusted file storage and sharing software.

Hire an IT team to implement security measures.

Hire IT professionals you can trust so that your company has its own IT department. An IT team gives your company active defense strategies that can greatly reduce the likelihood of data loss.

Conclusion of data loss insurance and legal assistance.

Establish the ultimate eventuality insurance for data loss protection. The best way to get insurance that guarantees excellent service should you claim data loss is to get the assistance of an experienced insurance dispute attorney.

While insurance companies make massive promises, they could deliver differently. The delivery of your claims will mean a loss to them and they will try to reduce or deny their debt.

An insurance attorney who knows how insurers will technically proceed against you will prevent loopholes in your policy. If you need to make a claim, an attorney can help enforce and maintain your legitimate insurance.

Data is gold in our digital world. Businesses and even individuals need to take protective measures to keep them safe.

All of your company’s intellectual property, trade secrets, inventions and creations as well as confidential customer information are represented in data. If this information is breached, you face massive loss.

Protect your data.

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