How is your Point of Sale System protecting you against Breach? Could you be responsible for a data breach? If a data breach occurs who steps in to report the breach, notify clients, pay fines, fees and penalties, what about lawsuits? These are all questions that we have been answering recently. The answer for most is “That Depends.”
Below are five questions to ask your POS:
1. What does the language in your contract state about data breach? Is the POS responsible, are you? Know what you are signing up for and read the small print!
2. How much Tech E&O Insurance does the POS carry? Very important question because it involves an error on their end in keeping your data secure from breach. If there is a large hack is there enough coverage to protect everyone else and you?
3. Do they have data breach insurance coverage? Are they carrying some form of coverage specific to protecting my clients’ information, is that language inside their Tech Errors & Omissions policy?
4. How are you protecting your system from hacks? Peel back the layers and understand how the risk management works. Is it in house, or third party? Who is protecting your data?
5. Where in the process of using the POS could you become the negligent party if a breach occurs? For example, if you give the POS access to your systems to install, or repair the system aren’t you negligent in allowing them access. So at what point to you become negligent if an attack occurs?
Purchasing a data breach insurance policy for your business is a great way to solve the cyber attack worry. You can’t always count on the other party to protect you, but you can protect yourself. A few insurance companies will jump in and provide protection, then subrogate against the POS.
Above all, be aware of how your company will handle a breach, your point of sale system included.
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