When you transmit and store information that is not publicly accessible, big data insurance is often an important risk management tool. Data loss incidents can cause massive time and financial disruption for an organization. Data can be accumulated from internal sources such as point-of-sale or customer record systems or external sources such as purchased records from professional data aggregators.
Types of Insurance
Because there is typically little standardization between big data insurance policies, it is often important to understand what types of losses are covered. Policies may cover all losses or only those due to defined types of incidents. Consider these types of insurance coverages:
- Liability coverage often protects the company when there are negligence or other lawsuits arising from data loss.
- Business interruption coverage may provide compensation if the business cannot be fully operational due to the loss.
- Crisis communication insurance typically defrays or reimburses the organization for the cost of hiring attorneys and public relations specialists to repair reputational damage.
- Network security property loss normally covers the expense of cleaning or replacing the damaged network hardware.
Scope of Coverage
As the use of data continues to grow in prevalence and complexity, big data insurance coverage is projected to evolve even further to meet future demands. It can be beneficial to review this policy annually to ensure the scope of coverage grows in step with your organization.