With more companies adopting new computer systems into their daily operations - such as cloud technology and virtually stored information - it is important for owners to keep their insurance policies up-to-date as well. The same way that businesses need to occasionally adjust marketing techniques, in order to meet the changing needs of their customers, insurance coverage might need to be adjusted over time.
The task does not have to be as daunting as some small or medium-sized business owners fear it to be. Working with commercial insurance specialists can help organization heads find the best and most comprehensive policy for each unique operation.
One way that technology is affecting companies is with how they store information. According to a recent survey by Veeam Software, a virtualization and backup specialist firm, more than two-thirds of 500 CIOs feel that their backup and recovery tools will become less effective as the amount of data and servers in their organization grows.
The findings showed that 88 percent of CIOs are already experiencing capability-related challenges with backup and recovery. Furthermore, every hour of downtime costs a business $324,793, meaning that downtime is, on average, costing organizations at least $1.6 million per incident.
According to Veeam president and CEO Ratmir Timashev, virtualization is reaching a turning point.
"Organizations have realized the benefits that the technology can bring on its own: now they are beginning to find out what it is truly capable of when managed and applied correctly," he said. "Modern data protection tools, specifically built for virtualization, can unlock this potential as well as eliminate many of the capability, complexity and cost issues IT departments face."
Whether accounting for a security breach or temporary loss of data, a technology insurance policy is a wise investment. And even if a business owner has such coverage, it is well-advised that he or she ensures that the protection is as current as possible.