Why the Time for Security & Privacy Insurance Has Arrived

March 7, 2011Articles Bloomberg Law Reports

You may think that a $30 USB drive does not seem like the most costly business asset you could lose, but you would be wrong. Protected personal information (PPI) and protected health information (PHI) lurk in almost every business. Employee information, including IRS W-4 forms, health questionnaires, payroll and financial information fill file cabinets and computer hard drives across the country. Businesses often keep such information about individuals even when they have not been employed by the company for decades. Customer information, such as personal and financial information, fill CRM databases, e-mail archives and smartphones in every state (and every country, in the case of traveling employees practically or physiologically unable to leave the smartphone at home). Even user information for online access to accounts, features and services permeate a substantial portion of modern businesses, with troves of full names, home addresses, credit cards and mother's maiden names stored in redundant databases, including those floating in that magical place referred to as "The Cloud."