Businesses are relying more and more on computers, storing vital data in them and thereby becoming vulnerable trying to protect the data from being destroyed or lost forever. There are horror stories of companies closing due to critical, irreplaceable data loss due to various reasons. All businesses that store critical data in computers or servers such as, company records, financial information, those that have a web site and use e-mails etc. need to have proper virus liability endorsement to be included in their professional liability policy. It should provide coverage for loss of data, replacement costs for hardware and software damaged by a computer virus or other malicious software; it also covers claims arising from damage as a result of hacking or unauthorized access to the system.
Reasons for Loss of Data:
# Virus attacks, such as Trojans, worms, malicious software instigated by an employee or outsider.
# Due to hacking.
# Employee error- unintentional and intentional
# Power, telecommunication failure
# Theft or misplacement of data
# Fire and other natural calamities that may cause data to be destroyed.
Businesses are under constant threat of data being misused and destroyed intentionally or accidentally by employees and intentionally by hackers. It is better for businesses to go for a good virus liability endorsement that will offer them a degree of protection to cover their losses and get back to business.
When businesses consider the effect of lawsuits arising from misuse of stored data, or unintentional, breach of confidential information in websites or e-mails, they will realize the need to take proper counter action to safeguard them. Several insurance policies offer coverage against data loss and the liability risks of using, storing and transmitting data. The policy also covers data recovery, restoration, re-creation and replacement costs as well as costs of any lawsuits. The carrier that offers virus liability endorsement also provides access to data restoration experts to get back in business as fast as possible. The premium is based on the extent of the coverage as well as the size of the company. It also covers data loss of an insured website hosted by a third party.
Sunday, December 17, 2006
Saturday, December 16, 2006
Small Businesses - Importance Of Backup Systems
Importance of backup systems for small businesses is in no way less, as compared to big companies. Small businesses also rely heavily on the computers for the data management. There are several examples of small businesses that lost all their valuable data because of computer failure and never returned to the scene again. 9/11 or Hurricane Katrina are some of the events of the recent past. These events have made people aware about the backup of data. Moreover, because of these events people now prefer to keep a backup of important data at the place that is out side the office.
How important backup systems are?
Importance of backup systems can be easily understood because computers are electronic items. Electronic items are prone to failures. Most threatening kind of failure is data loss or corruption of data. Once you lose or corrupt your data, you have no other option then restoring it from the backup taken before data corruption or deletion. Ignoring the importance of backup system may cause permanent loss of important data. In case you do not have the backup of data, you will have to start from the scratch creating affected files. However, this too is not easy, as it would require either a hard copy or something similar to create all files again. In addition, your employees will have to devote a great amount of time also.
On the contrary, those small businesses, which understand the importance of backup systems, take regular backup of important data files on hard drives. Restoring the data from hard drives is very fast and does not require much effort.
No matter how sound technology your computer has, no one can guarantee that it would never fail. Failure of computer systems is inevitable and it is a matter of time only when you would require restoring from a backup. So, the crux of the matter lies in taking regular backups, so whenever you need you can restore the data.
How important backup systems are?
Importance of backup systems can be easily understood because computers are electronic items. Electronic items are prone to failures. Most threatening kind of failure is data loss or corruption of data. Once you lose or corrupt your data, you have no other option then restoring it from the backup taken before data corruption or deletion. Ignoring the importance of backup system may cause permanent loss of important data. In case you do not have the backup of data, you will have to start from the scratch creating affected files. However, this too is not easy, as it would require either a hard copy or something similar to create all files again. In addition, your employees will have to devote a great amount of time also.
On the contrary, those small businesses, which understand the importance of backup systems, take regular backup of important data files on hard drives. Restoring the data from hard drives is very fast and does not require much effort.
No matter how sound technology your computer has, no one can guarantee that it would never fail. Failure of computer systems is inevitable and it is a matter of time only when you would require restoring from a backup. So, the crux of the matter lies in taking regular backups, so whenever you need you can restore the data.
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