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Cloud Storage for Businesses

The cloud is a great piece of technology that can save storage space and technology funds. Working on the cloud can allow your company to be more efficient and cost-effective. But what are the threats to cloud storage for businesses?


What is the Cloud?

First and foremost, the cloud is a network of servers. Some of these servers allow you to store and access data, like Apple iCloud. Others provide a service, like Adobe Creative Suite.

The servers run on the internet, instead of locally on your device. This allows you to access the information you have stored on the cloud from anywhere, as long as you have an internet connection. Every time you store information without using your device’s storage, it is being stored on the cloud.


 Is the Cloud Secure?

Cloud companies have security measures in place to protect your data from hackers, but unfortunately, they’re not foolproof. As cyberthreats evolve, it is important to protect your business and clients’ information. When finding a cloud service provider, it is important to ask them security questions, such as:

  • Will the information on the cloud be encrypted?
  • Have the clients provided their written consent to place information in the cloud?
  • Does the cloud provider employ adequate security to protect the data?
  • Will data be stored internationally? If so, will it be subject to search and seizure?

Only use a cloud provider that can provide reasonable assurance that your data will be protected. However, there are still chances your business is liable for certain incidents and you should protect your business with Cyber Liability Insurance.


What about Cloud Storage for Businesses?

Evaluate these four technologies and how your company uses them. Then determine what cloud storage makes sense for your business:

Backups – Backup services can be expensive. While some businesses have the money to backup all data files, most companies will want to back up only current, active data used within the last one to two years. Older files can be backed up and archived locally.

Applications – The benefits of storing applications on the cloud depend entirely on the type of application and how it’s used by your business. For example, applications like Microsoft Excel and Word may operate faster when stored on your device. If your company has employees that collaborate remotely, it makes sense to use an application on the cloud like Google Docs.

Email – In today’s business world, most employees access email using multiple devices. Storing this communication on the cloud makes sense, so all email messages are available on any device we choose to use. To protect important information in emails, use best practices and set up encryption protocol.

Data – Like backups, storing your active, shared data files in the cloud makes sense. Data files shared by multiple users or data files shared from multiple locations by a single user is helpful to have on the cloud. Older data files should be archived locally. Not only does storing older files on the cloud create additional file management efforts, it can also expose sensitive data unnecessarily.

Ultimately, the cloud is a great technology that makes businesses operate more efficiently, as long as it’s used properly. Learn more about keeping your business and data protected.


Coverage may not be available in all states and is subject to actual policy terms and conditions. Coverage may be provided by an excess/surplus lines insurer which is not licensed by or subject to the supervision of the insurance department of your state of residence. Policy coverage forms and rates may not be subject to regulation by the insurance department of your state of residence. Excess/surplus lines insurers do not generally participate in state guaranty funds and therefore insureds are not protected by such funds in the event of the insurer’s insolvency.

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