Understanding Cloud Computing Insurance
(Everything you need to know – and more)
Cloud computing has experienced massive growth in recent years, alleviating many collaboration and data sharing challenges. However, some new challenges emerge. For example, if you place client information on a virtual network, you can encounter data corruption and security issues from online hackers.
Your standard business insurance coverage typically is not designed to cover these risks. How do you continue to provide cutting-edge services while still protecting your business?
An independent agent in our network can provide information about cloud computing insurance and help you evaluate whether this coverage meets your needs.
One of these local agents can locate an insurer offering coverage that meets your business needs. It only takes a few moments to get started. To review cloud insurance policies and quotes, contact a local agent in your area today.
Why Do People Love Cloud Computing?
- It saves time. Managing data on a central database that users can access from anywhere reduces the time involved in emailing documents and tracking which one is the most updated version.
- It’s easy. If you’re working on a team where members are located in different geographic areas, you can send a million emails or simply upload files to the cloud. Changes occur in real time.
- It’s safe. Cloud computing is permission-based and administrators can set access levels and controls to ensure the right users have access to the right information.
Even so, networks are susceptible to hacking, outages and other risks. Cloud computing insurance may be the answer to protect your bottom line.
What Is Cloud Insurance?
Cloud computing insurance is meant to protect a cloud provider. The implementation of a system and the preservation of important information comes with risks. If anything goes wrong, such as an outage at a critical time that results in business interruption, your client can hold you responsible and seek damages.
Cloud insurance can not only provide compensation to your client as a result of a claim against you, but can also cover your legal defense and lost income.
There is another aspect of cloud insurance that can be beneficial. If your cloud computing service has cloud insurance, it puts the customer’s mind at ease.
Some cloud computing policies involve off-site data backup, which protects the cloud environment. Even if a data breach or catastrophic event does occur, the information is still safe with the third party provider.
Understanding which policy is best for your business depends on the type of work you do. If you work with large financial institutions or other data-driven businesses, opting for a policy that protects you in both ways may be in your best interest. If you only work with small businesses, data backup may be all you need.
Cloud Liability Concerns
Whether your data center is the victim of a hacker or a power outage, you need to be prepared. The question isn’t if a system will fail, it’s when.
In addition to maintaining other commercial insurance policies that address more traditional risks, cloud liability insurance helps providers mitigate certain risks that aren’t so traditional.
For example, cloud computing insurance can help you deal with the consequences of outages and cyber crimes, from hiring extra personnel to get the system back up to hiring a PR firm to manage your professional image in your virtual community and customer base.
If a business files a lawsuit against you, your liability insurance can pay for legal costs. With the development of any new technology, the insurance industry must work to find a way to provide protection to those at risk.
While cloud insurance is still a new product, it can help cloud computing providers to instill confidence in their customers and leverage their skills and reputation.
Finding Cloud Insurance
The first step in finding an effective cloud insurance policy is to take stock of your risks. Determine where there are vulnerabilities, and certainly manage any that you can through firewalls and best practices in network management.
Then work with a knowledgeable independent agent who can help you to address your risks with the right insurance plan.
An independent agent in our network who specializes in commercial insurance can be an excellent resource. Member agents have access to multiple policies and can help you compare cloud insurance quotes.