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How Can I Minimize my Risk of a Data Breach?

 

Identify the Data you Store

Most companies keep sensitive personal information in their files—names, Social Security numbers, credit card, or other account data—that identifies customers or employees.
This information often is necessary to fill orders, meet payroll, or perform other necessary business functions.
However, if sensitive data falls into the wrong hands, it can lead to fraud, identity theft, or similar harms. Given the cost of a security breach—losing your customers’ trust and perhaps even defending yourself against a lawsuit—safeguarding personal information is just plain good business.

A sound data security plan is built on 5 key principles:

  1. Take stock. Know what personal information you have in your files and on your computers.
  2. Scale down. Keep only what you need for your business.
  3. Lock it. Protect the information that you keep.
  4. Pitch it. Properly dispose of what you no longer need.
  5. Plan ahead. Create a plan to respond to security incidents.
For further information, see the FederalTrade Commission Publication, Protecting Personal Information–A Guide for Business

Implement Best IT Practices

It has been said many times that the best defense is a strong offense. By implementing best data practices you can reduce your risk of a data breach.  Some of the items should include:

  1. Use Strong Passwords and Change Them Regularly
  2. Install and Maintain Anti-Virus Software
  3. Use a Firewall
  4. Control Access to Personal Information
  5. Control Physical Access to Computer Systems
  6. Limit Network Access
  7. Regularly Backup your Data
  8. Protect Mobile Devices
  9. Develop Written Data Security Policies
  10. Conduct Regular Training fo Employees

 

 cyberplanner-page-001The FCC Cyber Security Planing Guide can help small businesses develop a framework for addressing their security needs.

Purchase a Cyber Risk Insurance Policy

A Cyber Risk Policy can help protect your assets in the event of a data breach.  At an estimated cost of $200 per record, 1,000 breached records can add up to $200,000 fast.  Morrow Insurance represents several companies that offer policies covering:

  1. Website Publishing Liability
  2. Security Breach Liability
  3. Programming Errors & Omissions Liability
  4. Replacement of Restoration of Electronic Data
  5. Extortion Threats
  6. Business Income & Extra Expense
  7. Public Relations Expense
  8. Security Breach Expense

Contact your Morrow Insurance agent today to discuss you specific needs.

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