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Do I Need Cyber Liability Insurance We Store Client Data In The Cloud?

Data stored in the cloud is technically off-site. When you store client information in the cloud, always ask the following questions:

Will the information be encrypted?

Have your clients provided their written consent to place their information in the cloud?

Does the cloud provider have adequate security to protect the data?

Only use a cloud provider that can provide reasonable assurance that your customer’s data will be protected and understand what their liability is if there is a breach. Understand that there are still chances your business can be held liable for certain incidents. It all depends on the contractual agreement wording between you, your clients, and the vendors, which will probably be determined by a court. Cyber liability insurance will protect you from any legal costs you incur as a result of the breach.


When the time comes, having the right commercial insurance coverage can make all the difference in the world for you and your business.