Protecting customer data: 10 practical steps
Your customers rely on you to keep their data secure. If customer identities, credit card numbers or other sensitive information are exposed, people can be harmed and your business can face legal and financial consequences.
For coverage options that address electronic data loss, consider Data Breach (Cyber Liability Insurance).
Steps to achieve data security
Perform a security audit. Evaluate the type and amount of data you store and where it is stored before implementing controls.
Know your industry's regulations. Different industries have specific legal requirements for protecting customer data—research applicable guidelines and comply with them.
Store only essential data. Keep the minimum information you need and securely delete data you no longer require.
Store customer data separately. Keep customer information on a separate network and restrict access to sensitive records.
Improve your security. Use strong passwords, enable two-step authentication for system access, enforce firewall passcodes and use encryption where appropriate.
Clean and maintain systems. Run updated antivirus and anti‑malware software, apply patches promptly, monitor system logs and deactivate access for former employees immediately.
Use a shredder for paper records. Shred sensitive documents with a cross-cut shredder rather than throwing them away.
Turn off machines. Power down copiers, printers and other devices with internal storage when not in use, since they can hold sensitive data.
Train employees. Educate staff on guarding data, protecting mobile devices and portable storage, and on safe email and payment handling practices.
Create and enforce a data protection policy. Maintain a written policy that explains procedures and responsibilities and update it as your security improves.
For risks related to alarms, cameras, and other protective equipment, see Security Systems Services Insurance.
If you want coverage options reviewed for your business, talk to an agent who can help match policies to your needs.
Frequently Asked Questions
How often should I audit my data security?
Perform a formal audit at least annually and after major changes to systems or staff; more frequent checks are advisable for high-risk data.
What is the safest way to handle employee departures?
Immediately deactivate former employees’ accounts and retrieve company devices and removable storage to prevent unauthorized access.
Should I encrypt customer data?
Yes—encrypting sensitive data both in transit and at rest is a key protection that reduces risk if systems are breached.
What should a basic data protection policy include?
It should define data classification, access controls, device and password rules, incident response steps and employee training requirements.