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From websites and social media to e-newsletters and mobile apps, it’s virtually impossible to survive in today’s marketplace without having a digital footprint of one form or another. And when it comes to conducting business in the online world, protecting your clients’ personal data is paramount.

In addition to the risk of getting hit with a lawsuit from a client whose data was hacked or lost, you must also take steps to comply with federal and state laws governing data privacy. To help you stay in compliance with such laws and avoid lawsuits, here are three essential strategies for managing the privacy and security of your client’s data.

1. Install multiple layers of security

To protect your company’s server and computers, you should install a comprehensive array of security systems, such as anti-virus software, firewalls, intrusion-prevention systems, and anti-subversion software. The key is to add as many layers of security as possible, since hackers are likely to move on to an easier target, if your network and devices are well defended.

And don’t forget to regularly install updates to your security software, so you’ll be protected against the latest threats. Regularly check your software vendors’ websites and the U.S. Computer Emergency Readiness Team (UC-CERT) website to stay up-to-date on the latest viruses, vulnerabilities, and patches.

2. Select the most secure web hosting service

Web hosts house your website and data on their own off-site servers. There are numerous web hosting companies out there, and they come with varying levels of server-side protection, including security cameras, anti-virus and anti-spyware systems, and hard-wired firewalls.

Choose a web host that offers a high level of security, especially against cross-side server attacks. Those involve hackers who open a fake account with the web host to access other websites on the same server. For enhanced protection, use a virtual private server. A virtual private server partitions your website from other sites that share the same server.

3. Invest in cyber insurance

As with other forms of liability your business faces, having the proper insurance in place is a foundational aspect of your company’s data protection plan. To this end, you’ll want to purchase a cyber insurance policy.

Cyber insurance offers protection against damages resulting from data breaches, hacking, network failures, and other events. If your business’ network is breached, the cost to recover and restore this information can be extensive. Moreover, you can also be held liable for damages to third parties, such as customers and vendors, whose data was lost or stolen from your system.

Depending on the coverage, cyber insurance can pay for a wide array of services to repair your network and retrieve your data, including investigations, business interruption, and data recovery. It can also cover the cost of notifying clients of a breach, paying fines, as well as paying lawyer fees, judgments, and settlement costs resulting from a lawsuit.

Digital defense

Regardless of the size of your digital footprint, you should stay apprised of the latest cyber threats and digital privacy laws to ensure your client’s data is secure. As your Family Business Lawyer™, we can advise you on the safeguards you should have in place and keep you updated on the ever-changing legal landscape surrounding digital privacy.