IT consulting firms on Long Island will almost always tell you being impacted operationally in a way that affects data isn’t a matter of “if”, it’s a matter of “when”. When will data be compromised? If you have perfect security, you’re going to have some sort of employee error impacting network data. If employees and security are perfect, what do you do when a natural disaster develops? New York isn’t in the epicenter of the middle east, but it’s not exactly some bucolic hamlet in the countryside, either.
You need cyber liability insurance as a means of security and protection against the worst-case scenario. Yes, you want backups, monitoring, recovery protocols, proactive security, and staff training against known as well as developing threats. But you also need insurance, so when all other layers of protection are breached, you’ve still got a safety net.
Data Security Management Considerations
The way in which you manage data will determine how vulnerable you are, and what your best options will be in terms of insurance. Consider these factors:
- Are all sensitive records stored digitally?
- Are records stored on-site, off-site, or on the web?
- What are local breach notification laws, how much will It cost you to fulfill them?
The more extensive your digital profile internally and across the web, the more expensive it will be for you to ensure your data. Accordingly, IT consulting experts on Long Island advise managing your system carefully so you reduce your surface area of vulnerability, cut down the necessary cost of insuring yourself, and consolidate operational resources.
Thankfully, insurance in terms of cybersecurity is relatively affordable. You can get a plan for $8k or under if you’re an SMB. The bigger you get, the higher your costs are; but $8k a year for 100 employees or less is a screaming deal. Just know if you’re getting first-party or third-party coverage.
First and Third-Party Coverage
With first-party coverage, company losses are covered. Damages to systems are remediated, including targeted information like customer private information or medical data. Third-party insurance provides coverage for customer information your business wasn’t able to protect. It will also cover legal costs should an individual or a bunch of them sue you. Sensitive data predicates third-party coverage.
Getting the Right Coverage
At Total Technology Solutions, our IT consulting team on Long Island can help you determine if you need first-party or third-party cyber liability insurance–or if you should use some combination of the two. Additionally, we can help you find the best deal for your specific business. Contact us now for more information and too know our managed IT services on Long Island.