Cyber Liability Insurance

How to Protect Your Company from a Data Breach

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Key Points
  • Minimizing data breach risk involves educating employees on cybersecurity policies, securing physical and digital data, using strong password management with 2-Factor Authentication, and maintaining awareness of phishing scams.
  • Practical steps include limiting data retention, locking sensitive files, using password managers, avoiding public Wi-Fi for work devices, and following resources like FINRA’s Small Firm Cybersecurity Checklist to build a strong defense.

With data breaches happening at a rapid pace, it’s vital to make sure your business’s data is secure. If your data is not secure, you are opening yourself to a tremendous amount of risk. While a Cyber Liability insurance policy can help in the event of a data breach, it’s best to avoid one in the first place. Let’s take a look at some things that can be done to help minimize the risk of a data breach.

Educate Employees About Their Role In Securing Data

Securing company data should be every employees’ responsibility. But it’s important to remember, you’re only as strong as weakest point. That’s why it’s important to build awareness throughout the company on the importance of cyber security company policies. Exact company policies will vary by company, but here are some to consider.

Protect Data At Your Workspace

One of the most likely places of a data breach is your workspace. When you step away from your desk, always make sure your sensitive business information is not easily accessible. For physical papers make sure you either bring them with you or you lock them away in a file cabinet.

For data on your computer, make sure you lock it when you are not actively using it. Also, while traveling with things like a company laptop, make sure your computer is never out of site and you do not join public wifi networks.

Password Management and 2 Factor Authentication

Having the same passwords for multiple services or having them shared throughout the company is very risky. Additionally, using strong passwords and changing them regularly makes it harder for thieves to access information. The best way to institute a password system is using a Password Manager. A password manager helps you securely store unique, long, and complex passwords for each service your company uses. We recently posted “How You Can Use A Password Manager to Protect Your Data.” Check it out!

For added security, it’s highly recommended to use 2-Factor Authentication (2FA). 2FA means you need two ways to prove who you are. This is traditionally done by using your password as one factor and then a one-time code texted to your phone or supplied through a 2FA app like Google Authenticator. Using 2FA is especially important to help prevent Phishing schemes.

Phishing Scheme Awareness

Phishing is when a hacker tries to appear as a trusted source in order to get you to give them sensitive information. Hackers do this mostly through email and phone calls trying to get credit card numbers, identity documents, passwords, company information, or even gain control of your computer. The best way to protect yourself is to not respond to or open suspicious emails. Before you open an email or respond to any requests to download files or click on links, make sure that it:

When in doubt contact the company directly using publicly available information to confirm their request.

Taking all of this into consideration can greatly reduce your chances of having a data breach. If your company doesn’t currently have a cybersecurity policy a great place to start is with the FINRA Small Firm Cybersecurity Checklist. This checklist, made by the Financial Industry Regulatory Authority, will help you “identify and assess cybersecurity threats, protect assets from cyber intrusions, detect when your system and assets have been compromised, plan for the response when a compromise occurs, and implement a plan to recover lost, stolen, or unavailable assets.”

Brittany Mohr Headshot

Brittany Mohr Hunter, ARM, AINS

Brittany Mohr Hunter is the Chief Operating Officer at Lewis Mohr Insurance Agency and brings over a decade of experience in commercial insurance and risk management. A third-generation leader in the family business, she earned her degree in Finance with a specialization in Insurance from The University of Alabama, and holds both the ARM and AINS designations. She remains deeply committed to ongoing professional development and staying at the forefront of industry changes, policy updates, and evolving coverage needs—ensuring her clients receive the most informed and up-to-date guidance possible.
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