Many businesses are using cloud computing services as a way to store data through shared networks and servers over the internet, which allows access to information anywhere, at any time. This decreases infrastructure costs while increasing productivity, but it also increases the need for risk management.
Cloud computing poses privacy and security challenges similar to those in traditional computing, but are amplified because your business loses control of information as well as symptom components that were previously under your direct control. Business owners should ask themselves a few questions before diving head first into cloud computing services. How will your cloud computing data be stored, protected and used, and who will have access to it? What data privacy and security laws and regulations apply to your organization? How will the cloud computing company respond to data vulnerabilities and breaches? How often will service interruptions occur and bar access to your data within the cloud? How will your employees and you access data in the cloud?
Because an organization retains ultimate responsibility for the privacy and security of its own data, regardless of where it is stored, we recommend cyber insurance coverage for organizations that use, store, or have access to the personal identifying information of others. Traditional commercial general liability policies typically exclude data-related risks. Cyber insurance policies may include first-party coverage against losses such as data destruction, extortion, theft, hacking, and denial of service attacks. They may also offer liability coverage that indemnifies you for losses to others caused by errors and omissions, failure to safeguard data, or defamation.
To read more about cloud computing services and whether cyber insurance coverage for risk management is right for your organization, click the September/October newsletter under the Resources tab.
To purchase specialized cyber insurance coverage or discuss whether your current coverage protects you from internet security issues or not, contact BPJ at (417) 887-3550 or email info@bpj.com.