Third-party cloud providers losing your data is something that is rarely talked about publicly, but data loss has long been considered one of the greatest cloud security threats as cloud consumption increases globally. There are a number of reasons data loss can occur, sometimes they stem from simple migration errors, where data is left behind on old hardware during cloud migrations and then overwritten when the old hardware is later repositioned.
Data can also be lost through sync inaccuracies. When cloud providers hold petabytes of data for thousands of customers, they have to rely on synchronization software to ensure that customer data is being backed up properly on a regular basis and sometimes things go wrong. Human error is always a huge factor and sometimes data can be accidentally overwritten, in the worst case scenarios other times it is maliciously destroyed.
We believe that when you allow your data to be hosted with a third-party cloud provider, you need to be absolutely sure that they are not only safeguarding your data properly, but that they also have policies in place to compensate you financially should your data become lost. Unfortunately whilst most of the larger cloud providers go to great lengths to ensure that your data is kept safe, hardly any of them provide any kind of policy or framework to calculate the actual financial losses incurred from data loss and compensate you financially should the worst occur. None of them provide data loss insurance.
Usually the cloud providers themselves will be covered by their own insurance, but this insurance is for their protection rather than yours.
There are inherent risks in trusting a third party with your data and it more than makes sense to mitigate against those risks in any way that you can. The first step towards mitigating against cloud risks is recognizing that they are real, quantifying them and providing financial protection against those risks should the worst occur. This is how cloud insurance began, with your financial protection and cloud risks in mind.
Cloud insurance protects your financially against data loss.
Data loss insurance, available with any cloud insurance cover.