Although it sounds ethereal, cloud computing is very real and is rapidly being adopted by hundreds of thousands of businesses around the world. With the use of applications like Salesforce, as well as social media sites like Facebook and LinkedIn, nearly every business has data on a cloud provider, whether they realise it or not.
Outsourcing data, however, is quickly becoming a growing issue. When companies choose to place their data on cloud services, contracts are rarely negotiated meaning standard protections are often not put in place. Control is simply given away, and companies have to rely largely on faith that their most precious commodity will remain safe and secure. However, accidents happen and some of the largest cloud operators, including Dropbox and Amazon Web Services, have suffered significant data breaches.
The problem is that most cyber liability policies are focused on the client’s own systems, not those of third parties. In fact, many cyber insurances use outdated forms which do not address emerging privacy risks like outsourced data storage, even though these risks make up such a large part of a company’s cyber exposure.
Recogising this gap in cover, we’ve updated our CPM product to include cover for data stored in the cloud. This means that regardless of how or where your data is stored our policy will respond.