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Data Breach Insurance — What You Need to Know

Data Breach Insurance

At one time or another you have likely received an email informing you that you will need to change your password for one of the websites you visit. The trigger for these advisories is often a data breach, a nightmare scenario in which a hacker gains access to consumer data, which could include personal information such as credit card numbers, social security numbers and addresses.

Consumers are understandably upset when this occurs, and are often victimized once the hackers sell the information they have gathered to individuals who can run up their credit cards or otherwise wreak financial havoc. The consequences for a company whose data has been breached are often dire. Since hackers often steal data that belongs to thousands of customers, the expenses can run into the millions of dollars. Medical databases are not the only targets, however. Anyone suspected of storing customer financial information can become a victim.

Data breach insurance protects against a company’s losses in the event a breach of data security occurs.

If you decide to purchase it, make sure that your policy covers fines levied by the state, as otherwise you could be left without the amount of financial protection you need. Note that some data breach policies include access to professional assistance to help you comply with regulations and implement practices that can further protect your company.

Many policies provide protection against lawsuits arising from stolen data.

Since the victims cannot sue the hackers who sold the data, they will often look at the next best option – your company. Since a data breach could result in multiple lawsuits, the peace of mind is likely worth the premiums you will pay. Your policy may also offer assurance that forensic services will be paid for in the event you need to gather data to protect yourself in a lawsuit.

Some policies also provide reimbursement for money your company has lost due to the inevitable interruption in business that data breach events cause.

If customer data is stolen during the holiday season, for example, and your business sells smoked turkeys, the financial loss you will experience during that time could be an amount equivalent to your entire profits for the year. While you struggle to reestablish your company’s reputation and deal with notifications, your financial needs will be taken care of if you choose a policy that has this provision.

Insuring your company against data theft is not the only step you can take to protect yourself, however.

Evaluate your data security practices (have you updated your passwords recently?), ensuring that current anti-virus and malware software is installed on all computers, that a network firewall is in place, and data is encrypted. These steps can go a long way toward protecting your organization against financial loss and can help to reduce your liability in the event that a customer initiates legal action.

IBM Survey Busts Millennial Workplace Myths

IBM Survey Busts Millennial Workplace Myths

As a small business owner, you’ve probably spent hours reading about the changing face of America’s workforce as Baby Boomers retire and Generation Y—or the Millennials, born between 1980 and 1993—take their place. Most reports would lead you to believe that managing a multigenerational workplace is difficult, and that Millennials—with their penchant for technology and drive to advance their careers—are likely to start a perhaps unwanted revolution. But a recent survey conducted by IBM has something else to say.

The multigenerational study surveyed 1,784 employees in 12 countries and six industries, comparing the preferences and behavior patterns of Millennials with those of previous generations, namely, Gen X (born 1965-1979) and Baby Boomers (born 1954-1964). The findings revealed that Millennial workers actually want many of the same things their older colleagues do. Their attitudes are not, in fact, that different from other employees. For example, consider the following common myths most employers believe about Millennials and the study’s contradictory revelations.

Myth 1 – Millennials have different career goals and expectations than older workers do.

When given a range of career goals to rate, including “do work I’m passionate about” and “start my own business,” all three generations were quite close in their responses. Millennials and Baby Boomers were actually closer in response rankings to each other than either was to Gen X. And they all want financial security, seniority and the opportunity to work with a diverse group of people.

Myth 2 – Millennials expect recognition and constant acclaim.

Millennials grew up during a time when children’s sports organizations began awarding trophies to everyone on the team, doing away with “losers” and making everyone a “winner.” Their parents told them they could become whatever they wanted, and some have said this generation has unrealistic expectations as a result. However, the IBM study found that they don’t really expect more recognition at work than Gen X or Baby Boomers do. They focused their definition of a “perfect boss” more on a manager who is ethical and fair than one who always recognizes their accomplishments.

Myth 3 – Millennials are addicted to social media and want to do everything digitally.

Millennials are adept at surfing the Internet, communicating via social media and text message, and interacting digitally with the world at large. However, they actually prefer face-to-face contact for a number of things including learning new skills at work. They also easily distinguish between their personal and professional lives, using social media accordingly. While 27 percent of Millennials reported never using their personal social media accounts for business purposes, only 7 percent of Baby Boomers kept their online personal and professional interactions separate.

Myth 4 – Millennials are job hoppers who are likely to leave your company for lack of passion.

In actuality, according to the IBM study, Millennials change jobs for the same reasons Gen X and Baby Boomers do. These included “enter the fast lane” (make more money or work in a more innovative environment), “shoot for the top” (take on more responsibility), “follow my heart” (do work they are passionate about), and “save the world” (have a positive impact on society)—in that order. Additionally, 75 percent of the Millennial survey respondents indicated they had held their current position for three years or more, indicating they are no more likely than other generations to jump from one job to the next.