Managing Data Loss Risks

insurance big data
While any type of lost data can cause disruption to operations, the scope of insurance big data users typically carry varies greatly depending on the policy.

The types of insurance big data users often purchase has been evolving as more organizations compile, store and transmit data as part of their daily routines. Social awareness about cybersecurity and the how non-public personal information becomes compromised has grown rapidly with the publicity surrounding large data breaches.

How Is Data Lost?

There are several ways an organization can lose access to its valuable data. Some losses result in customer or employee information being accessed by unauthorized sources, while in other cases the data simply becomes irretrievable. When evaluating the risk of data loss, consider the following types of incidents.

  • Poor security practices, including physical or network administration security
  • Malware or viruses that restrict access to or damage data
  • External theft of data or computer hardware
  • Internal theft of electronic data, paper records or computer hardware
  • User error, from deleting the wrong data to spilling coffee on the hard drive
  • Faulty or incomplete backup systems
  • Hardware damage from electrical surges, power failures and fire or water damage
  • Power surges or failures

Will Your Insurance Cover All Types of Losses?

While any type of lost data can cause disruption to operations, the scope of insurance big data users typically carry varies greatly depending on the policy. Evaluating the potential root causes of data loss in your organization and planning how to mitigate those risks can be critical to a comprehensive data security and risk management plan.