Data Loss Insurance

What is the worst disaster you can imagine that could happen to your business? Fires and floods probably come immediately to mind, along with a quick mental review of the insurance you may have against those disasters, but how much attention have you given to the effects of a partial or total loss of the data that records all your business activities? Long gone are the days when the computer was a convenient addition to the business, or even just a significant contributor to the efficiency of your operation. For most companies, the computer system and the way it is applied, in many ways, defines the business. In that environment, data insurance should be one of the top considerations when you think about what you are doing to guard against disasters that could put you out of business. While such insurance would be prohibitively expensive if you could buy it, the good news is that this is one area where self-insurance can really work if handled correctly. SalvageData is regularly contacted by businesses and individuals for data recovery services who, unfortunately, believed no insurance against data loss was necessary.

Regardless of the size of your business, rigorously applied data backup and recovery procedures must be put into place to give you the assurance the way your business operates today will not be a casualty of some natural or manmade disaster. While the details vary depending on whether you have a large company, home business, or just a home computer, the overall approach to an effective data backup and recovery plan could be broken down into equipment, procedures, and priority.

Equipment

First and foremost in a data backup plan is having the proper equipment in place. For any specific application this may involve anything from a RAID array to a simple CD burner. The type and quality of the equipment must be appropriate for the data being backed up. If the data requirements are large enough, it may be appropriate to limit backup equipment to the highest priority data. Such decisions need to be carefully thought through before a disaster strikes, not after. Equipment prices continue to come down as capability increases, so the cost of placing the proper equipment in place should not be a barrier to any business that thinks through the potential cost of not having it.

Procedures

The best equipment improperly applied will still spell disaster if a data emergency arises. This highlights the need for a set of procedures that are both effective and usable. Effective backup and recovery procedures need to be written that are thoroughly understood and can be easily applied with the personnel on hand. More than one company has found to its regret, their procedures were so complicated they were not being reliably carried out. Do not wait until disaster strikes to make sure you have policies in place having been tested and proven to be not only effective, but practical. Beyond making sure the basic backup procedures are carried out regularly, periodic disaster drills should also be included exercising the complete procedure required if the existing data were completely lost.

One procedural area that may escape notice is the need to properly protect backup data. The fire, flood, or tornado that sweeps your facility and takes your computer system will also take your backup data if it is not stored offsite or in a fireproof and waterproof enclosure.

Priority

It is interesting to observe how differently company policies are often applied depending on the priority top management places on each one. The dollars and best personnel tend to flow to the projects and areas that are currently in favor. With the understanding that your business future depends on it, data backup and recovery cannot afford to depend on the priority which is held by top management. While the cost will grow along with the size of the company, the commitment to support a thorough and effective backup and recovery plan with the necessary equipment and personnel should be a constant. It is probably the cheapest insurance you can buy. Contact SalvageData for data recovery services or for guidance on how best to set up your data insurance plan.