These days, cyber attacks against businesses are a daily occurrence. This crime poses a significant threat to firms that have a "bring your own device" (BYOD) policy, allowing employees to use their personal mobile devices — such as tablets, smartphones, and laptops — for company business.
This eliminates the cost of providing devices to employees who are away from the office, raises productivity by streamlining the flow of information, and allows real-time employee response to client needs. On the other hand, a BYOD policy creates serious information security risks.
Companies have significantly less control over employees' devices than over in-office technology, which makes them easier to hack. More and more workers are storing data from their devices in the cloud: one study found that among the 89% of young employees who use personal cloud storage, 70% are storing work-related files while 33% store customer data there. What's more, roughly one in three robberies involve mobile phones, and criminals often target laptops and tablets.
The result: it can be easy for hackers and thieves to target corporate data and confidential client information on your employees' devices, leaving your company open to expensive litigation and negative publicity.
Ways IT can reduce device risk
- Adding auto-locks on all devices that can disable them if stolen.
- Making sure devices are stored in a safe place at all times.
- Recommending passwords that combine letters, numbers and symbols.
To reduce this exposure, risk management experts recommend that your IT department educate employees on the vulnerabilities of their devices and provide the resources to protect them. Our risk management specialists can also review related coverages such as Security Audit Insurance.
We strongly encourage you to purchase cyber liability insurance as a safety net that can help you prevent hacking and minimize its financial and reputational costs to your company. If your firm operates mobile equipment or vehicles, our team can also discuss coverages like Mobile MRI/CAT Scan Units Insurance that may apply to specialized exposures.
To learn more, feel free to talk to an agent or get in touch with our risk management specialists at any time.
Frequently Asked Questions
What are the main risks of a BYOD policy?
Main risks include lost or stolen devices, insecure Wi‑Fi connections, use of personal cloud storage for work files, and malware or phishing attacks that compromise company data.
How can employers limit data exposure on personal devices?
Employers can require auto-locks and strong passwords, enforce encryption, provide secure remote access tools, and offer employee training on safe device use.
Will cyber liability insurance help after a breach caused by an employee's device?
Cyber liability insurance can help cover incident response costs, notification expenses, and certain liability claims, depending on the policy terms and exclusions.
Can employees use personal cloud storage for work files?
It is safer to prohibit or tightly control personal cloud use for work; if allowed, set clear policies and require approved, secure services and access controls.