The use of cloud-based storage programs has boomed over the last few years. As this technology simplifies communication, easily shares data with employees, and provides a simple transfer of information, cloud storage is only becoming more and more popular. With that said, there are some inherent cyber risks that come along with its usage. As Cyber Liability Insurance has become a necessity for any small business that stores and collects data, the additional risk of cloud computing must be addressed. Let us take a closer look at the exposures of the cloud and how to mitigate risk and responsibility for your laundry business.
According to InsuranceTech.com, an innovative technology website, worldwide spending on cloud computing is expected to reach $42 billion in 2016; however, all of this information wirelessly entering a cloud creates a number of vulnerabilities for businesses using it. For example, hackers can breach the system and access confidential information, causing data to be stolen or destroyed. This only increases the liability risks that the laundry business-and any other industry-faces.
The biggest threat is that cloud based systems are hosted by another server. If for some reason they experience an outage, are breached, or are compromised, this increases the risk for your laundry business. While many believe they are transferring risk by hiring a third party, this is actually untrue. As many of these cloud-based servers have user conditions that limit their liability, your company is on the hook for damages.
Therefore, first-party coverage is needed. First-party provides protection against the effects of a breach, including legal teams, public relations, credit counseling, notifying consumers and more. As the average cost of a breach is $3.8 million according to the Ponemon Institute, small businesses really cannot afford to forego this coverage.
At Irving Weber Associates, we are dedicated to your success. Our fundamental coverages provide the policies you need in order to be properly secured. Whether you need cyber protection or workers’ compensation for your laundry business, we can customize a policy suited just for you. For more information, we invite you to contact us today at 855-661-4557.