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Protecting Your Prized Possessions with Data Insurance Outlined By Policyholder Attorney Bill Voss

Protecting Your Prized Possessions with Data Insurance

With the advent of information technology, businesses are largely dependent on computers and the Internet for storing valuable information about their clients, processes and operations, among others. Companies try their best to keep these information private and secure. But the risk of losing them remains. We’re all familiar with stolen e-mail account information and credit card databases from big companies like Yahoo!, Visa and MasterCard.

This is where data insurance comes in. With this type of insurance, valuable assets of e-businesses like network connectivity and electronic data are protected. Here are some things you need to know if you want to get data insurance for your business:

Finding the Right Insurer – Steps in Getting Data Insurance

Choose an insurance company that has its own e-business unit. The company’s underwriters must have the technical know-how on Internet security and data loss. Preferably, you should engage the services of an insurer that has a global reach. It should also have a high capacity or amount of liability that it will put on any account.
 
The current costs may be prohibitive for small businesses and are only feasible for medium and large businesses.

When you apply for data insurance coverage, be prepared to answer questions on the technology services and products your company uses and the people who manage the risks that will be insured.

The insurance company will conduct an online security assessment. Your Chief Technology Officer may be interviewed with regard to your company’s networking procedures and policies.

The insurer may also conduct an on-site security audit where employees may be interviewed and basic network intrusion techniques may be tried.

The cost of your data insurance will depend on the amount of your liability, your company’s size and security procedures and the type of insurance you are getting. The security procedures can include the type of operating system, authentication scheme, software and programs you use.

Expect to have difficulty in determining the value of the data you want to be insured, especially if it involves an intangible asset like a recipe.

Types of Data Insurance

Web Content Liability. This protects you against trademark, copyright, slander and other suits that may result from data posted on your website. This can include erroneous information on your website that causes damage to another person.
 
Legal Liability. This protects you against damage done to third parties due to security lapses in your network. An example would be if a virus is sent out from your office e-mail.

Professional Liability. This covers businesses that render professional services and who may be sued for negligent rendering of service. This can include companies that hire consultants or freelancers who may provide inaccurate information that may be binding on said company.

Business Interruption. This compensates you for losses you may incur when your website or network becomes unavailable. This is essential for businesses that sell products or services online like airline companies.

Network Security Property Loss. This protects you against corruption, theft or damage of data. This includes attacks by hackers or even your own employees.

Crisis Communication. This covers your expenses in communicating with your stakeholders and clients when you have an online crisis to assure them that it is still safe to do business with your company.

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The Voss Law Firm, P.C. represents clients on a local, national and international basis. We proudly serve companies and individuals along the Gulf Coast and around the globe on a contingency fee basis. Our law firm collects nothing unless we recover on our client's behalf.

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