Data Privacy in 2016: A Concern for All Businesses

Posted on: January 8, 2016 by Newmark Insurance

Network security and privacy are ranked as the number one concern for businesses going into 2016. The increase in data breaches, some of which have devastated businesses, have led to increased awareness of this issue. In order to reduce your Real Estate Cyber Liability, obtain a policy that best suits your risk exposures.

As smaller firms often don’t have the financial resources to fully recover from a breach, cyber security is imperative. However, businesses of all types are susceptible to data breaches and should prepare themselves to prevent and manage these attacks.

However, the management of this issue should be delegated to more than just the IT professionals in the firm. As Amanda Gratchner, global privacy officer of Navex Global explains, “There should be a designated individual responsible for evaluating and addressing privacy concerns. That individual should be involved in the development of any new products and services to evaluate whether any privacy considerations exist. This approach is generally referred to as ‘Privacy by Design,’ since it incorporates privacy into the product development lifecycle, rather than performing a privacy evaluation after the product is fully developed.”

Legal counsel should be sought out to monitor any breaches. Depending on the severity of the case, the Federal Trade Commission (FTC) will have to be notified, clients have to be made aware of the issue, and legal action is likely to be taken. A lawyer will help to mitigate these risks and provide professional legal advice before and after an attack.

Inside Counsel states that your firm should address the following questions prior to a breach to ensure network privacy and security: How do you store sensitive data? What data are you collecting? Are you treating sensitive information with care? Where does this information come from? How is data collected and transferred? If you can accurately and confidently respond to these questions, your information is likely secured.

At NewMark Insurance Services, we specialize in the real estate sector. By protecting your assets with our comprehensive cyber liability policies, you can achieve peace of mind and release your firm of financial obligation. For more information about our products and services, contact us today at (855) 777-6549.

Posted in: blog Real Estate E&O