Understanding Information Technology & Why You Need To Manage Your Risks

How would you define information technology (IT)? One simple definition is that IT is the application of computers and telecommunications equipment to store, retrieve, transmit and manipulate data.

Lets go even simpler. You can say it is a synonym for computers and computer networks. If you have a business, then it is safe to say that you are using information technology.

Why should business owners be concerned about managing their IT risk?

How reliant are you?

  • Do you have office computers?
  • Do you store important files on them?
  • Do you store client information on them?
  • Do you have a website?

It comes down to this: the more you rely on computers, the Internet and e-commerce in your business, the more exposure you open yourself to (property and liability risks involving information technology).

With each day that passes and the more businesses rely on computers and the internet for communication & transactions, the more cyber insurance becomes a necessity.

Ask yourself these questions:

If the answer is “I don’t know” to any of these questions, then it’s time to manage your IT risk.


Here are some tips to help you manage your IT risk

  • Keep updating your malware and antivirus software on each office computer. Have them scheduled to run daily.
  • Install a firewall on every computer.
  • To prevent the loss of your client records, customer orders, accounts receivables, etc., you should back up the data regularly and often and store the backup copies in a separate, secure location.
  • Do you have a website? Choose a website host that backs up all files at least daily.
  • Consider investing in setting up a real-time “mirror image” of all your site data. This will allow it to be transferred immediately if the original site crashes for any reason.
  • Hire a dedicated IT person or a firm that specializes in information technology to monitor your equipment.

How to protect yourself from liability

Remember that you could be sued if there is a breach of your security and sensitive information about your clients or employees stolen. What can you do to protect yourself?

  • Make sure you use reputable vendors only.
  • Never use copyrighted materials on your website. Using copyrighted information, images and music could lead to a lawsuit.
  • Make sure your data is encrypted. Make sure your website bears a “security seal” from a reputable security certification organization to prove it.
  • Do you have a formal privacy policy on your website yet? You can Google this to get ideas how to do so.
  • Remember to have your lawyer review your website content and your privacy statement so you aren’t opening yourself to liability.

We hope these tips will help you to manage your risks with information technology. If you would like a free quote on cyber liability insurance then please contact a representative at insurancehub.com today.