Five Reasons You Need Cloud Insurance (if you use Dropbox or Box)

Reason 1.
If they lose your cloud files, its not their fault.

If you are one of the 400 million cloud users who use Dropbox or Box and they accidentally lose your data or let it get stolen by cyber thieves, its not their fault and it says so in their terms and conditions. Thats right, its your fault and your risk.

Sadly whilst cloud providers want you to trust them, they also want you to swallow all of the risk involved in handling your data, just in case the worst happens.

Check your terms and conditions to see if this is the case with your provider.

Reason 2.
If your files are not available, its not their fault.

A Service Level Agreement (SLA) is a promise that cloud providers make to their customers about the level of service they will provide, usually it is this document that promises a certain amount of uptime and support response time if things were to go wrong in any way and cause your files not to be available.

An SLA is a promise that your cloud files will be available say, 99.99% of the time, but if you are one of 400 million cloud users who use Dropbox or Box, then you do not have an SLA, meaning if your files are not available, then its too bad.

Check with your cloud provider to see if you have an SLA promising uptime.

Reason 3.
Cloud provider insurance does not cover YOU.

Your cloud provider may have insurance, they may even have cyber insurance, but if you ask them some hard questions, you will find that no cloud provider has any kind of insurance that specifically protects their customers data or cloud assets.

If a worst case scenario happens and you want financial compensation, you need to hire a lawyer to go after your providers insurance, because it doesn’t cover you.

Whilst your provider will have insurance to protect themselves against cloud risks such as cyber attack, data loss and downtime, it does not extend to you.

Ask your provider about their insurance and if it specifically covers you.

Reason 4.
You do not have any cloud insurance.

You insure your car, your health, your travels, but when it comes to our hugely valuable cloud based files and assets, you probably have no cloud insurance.

If your data goes missing, is stolen and used by cyber criminals or becomes unavailable for a long period of time, you get no financial compensation.

The inherent risks of cloud computing combined with the negligence of cloud providers in providing even the most basic financial protection for your cloud based assets means that you need to cover that risk with your own insurance.

Ask your cloud provider if they offer insurance to cover your cloud assets.

Reason 5.
The Entire Cloud Industry Downplays The Risks

Your cloud provider probably has not told you about any cloud risks, their website probably does not have a page which lists the potential risks of using their service.

The entire cloud industry refuses to talk publicly about the threat that downtime, cyber attack or data loss/theft poses to their customers data and downplays the risks associated with the cloud, not least that they offer no SLA or insurance.

Cloud service providers usually do not make public announcements when they suffer from downtime, or a cyber attack or lose a customers data, so we have no real way of knowing how much of this goes on, but we do now that the risks are being consistently downplayed across the industry.

There is clearly a lot of risk that we can not see because of this downplaying and failure to report incidents publicly and this only makes the risks even greater.

Ask your cloud provider for a document listing the previous 12 months downtime and covering how much data they have lost in the last 24 months.

These are the top five reasons why you need cloud insurance, if you have any significant amount of data or cloud based assets entrusted with a cloud service provider, raise the above five points with them and ask some hard questions.

First published on Medium.

Guise Bule

Guise Bule is our Chief Marketing Officer and the Chief Innovation Officer at Iron Orbit, he writes about cloud computing, technology and desktop virtualization.