Why technology insurance should be part of your recovery plan

This blog recently discussed the importance of business owners keeping their information protected as they start to incorporate cloud technology into daily operations. While a digital aspect can keep companies up to date on the most efficient ways to run an organization, they can also expose owners to unforeseen risk.

Whether a cyber criminal hacks into the computer system or an employee knowingly exposes sensitive company data, any type of data breach can be devastating to a business. Time spent finding the leak and working toward recovery can take time, which often means money lost. Strong technology insurance though, can help make the process run more smoothly.

Recent research shows that small to medium-sized businesses are unprepared for the possibility of a data breach, and the risk is even greater as they make the move into the digital world.

According to a survey from Neverfail, an IT business continuity management firm, 70 percent of businesses only update their disaster recovery plan every one to five years, and one-third of companies only test that plan once every 12 months.

Martin Mackay, CEO of Neverfail, said in a statement that as today's business world continues to evolve and become more dependent on computer systems, it is even more imperative to have protections in place.

"The dynamic nature of virtualization, which offers benefits such as lower costs and increased automation, also makes it harder to keep [disaster recovery] plans up-to-date, putting critical operations at risk," he said. "The findings demonstrate that gaps exist, and in order to maintain continuous availability, businesses must take the proper steps to close them."

Working with commercial insurance specialists can help business owners find the right coverages a safer transition into virtual servers.

 

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