|Losing data from an information technology (IT) disaster is potentially devastating. It could disrupt or even permanently shut down your business. That’s why it’s critical for your business continuity planning efforts to include an IT disaster recovery plan and the right insurance.
IT-related disasters can take a variety of forms. You’ve probably heard of cyberattacks and malware, but IT-related disasters can also involve hardware failures, human error and even natural disasters (such as earthquakes and hurricanes).
These disasters can be devastating. According to McAfee, cybercrime costs the world economy more than $1 trillion annually, which is 1% of the global gross domestic product. The average ransomware demand is more than $100,000, according to Bank Info Security, and a third of companies attacked by ransomware paid that price, resulting in an average of 16 days of downtime. Knowing that, it’s easy to see why a company that suffers an IT disaster might have to close shop.
This makes it critical for you to include an IT disaster recovery plan and the right insurance in your business continuity planning efforts. Let’s look at both topics separately.
First, what is an IT disaster recovery plan? Fundamentally, it’s a set of instructions that guide your business in responding to an unplanned IT outage. The goal is to have clear, repeatable steps that allow you to return to normal operations as soon as possible. While that sounds simple, it can be complicated because you’ll need a variety of tools and processes in place.
For example, you’ll want to take inventory of your entire IT infrastructure because the failure of even one critical system could affect the others. You’ll also want to ensure that all your critical data is being backed up regularly.
Then you’ll want to determine what happens in the event of a disaster. What critical functions do you need to get up and running first? It’s important to create a plan for restoring those systems, either from the cloud or from other off-site servers, to reduce any downtime.
To do all this, you’ll want to put together a team consisting of key IT and operations employees. They should all be briefed on the disaster recovery plan and be ready to take action when necessary. And you’ll want to have a plan in place to communicate with your employees. If your IT systems aren’t working, you’ll need to have another way to contact and update your employees.
You’ll also want to protect your business with insurance. Commercial property insurance, for example, can pay to fix damaged property and replace equipment needed to get your business back up and running. Business interruption insurance can replace your revenue when your business is forced to close. And cyber liability insurance can protect your company against liability and expenses due to the loss of data or privacy and security breaches.
We’d be happy to review your business insurance needs and determine if you are adequately protected from IT disasters. Please contact us today to get your insurance checkup going.