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NEW YORK, Oct. 22, 2020 – Data breaches can be either averted or mitigated if businesses take the proper precautions to safeguard their financial and reputational risks, according to the Insurance Information Institute (Triple-I).
In a brief video, the Triple-I outlines seven ways businesses can protect themselves from data breaches given the growing number of cyberattacks.
- Understand your cyber risks. Businesses are vulnerable to cyberattacks through hacking, phishing, malware, and other methods.
- Train Staff. Those engaged in cyberattacks find a point of entry into a business’ systems and network. A business’ exposure can be reduced by having and enforcing a computer password policy for its employees.
- Keep Software Updated. Businesses should routinely check and upgrade the major software they use.
- Create back-up files and store off-site. A business’ files should be backed up either as an external hard drive or on a separate cloud account. Taking these steps are vital to data recovery and the prevention of ransomware. Ransomware is when a cyberattack results in a situation where a business is asked to pay a fee to regain access to its own data.
- Ensure systems have appropriate firewall and antivirus technology. A business should evaluate the security settings on its software, browser and email programs.
- Establish a Data Breach Plan. A business should remind its employees to review periodically the data breach detection tools installed onto their computers. If a data breach occurs, employees must notify the business immediately to prevent further loss.
- Protect your business with insurance coverage designed to address cyber risks. Cyber insurance coverage typically provides protection for costs associated with data breaches and ransomware.
When businesses are in the market for a cyber insurance policy, or looking to renew an existing one, these risks should be considered, the Triple-I states:
- Liability—A business may be liable for costs incurred by its customers and other third parties as a result of a cyberattack or other Information Technology (IT)-related incident.
- System recovery—A business would need the financial resources either to repair or replace its computer systems or lost data.
- Customer Notification—In several states, businesses which store customer data must notify customers if a data breach has occurred or even if one is just suspected to have happened.
- Regulatory fines—If a data breach results from a business’ failure to meet federal or state compliance requirements, the business may incur substantial monetary fines.
- Class action lawsuits—Large-scale data breaches have led to class action lawsuits filed on behalf of customers whose data and privacy were compromised.
The Triple-I has a full library of educational videos on its YouTube Channel. Information about Triple-I mobile apps can be found here.