12 September 2024
The Critical Importance of Data Backups and Offsite Storage for Law Firms
In today’s digital age, where the lifeblood of any business is stored on computers and servers, the importance of data backups and offsite storage cannot be overstated.
Understanding your risk
According to the latest figures from the UK Government, half of businesses (50%) have experienced some form of cyber security breach or attack in the last 12 months. This is much higher for medium businesses (70%) and large businesses (74%).
For law firms, maintaining a robust data backup strategy is not just a best practice; it’s essential for business continuity and a requirement for securing cyber insurance. Understanding why these core controls are crucial, the potential consequences of neglecting them, and actionable steps for implementation can make a significant difference in protecting business operations.
Why are these core controls so important?
Data backups and offsite storage in a protected environment serve as a protection against a multitude of threats. These controls are critical from both a continuity perspective and a cyber insurance standpoint.
Data loss: can occur due to hardware malfunctions, software errors, user mistakes, cyber-attacks, or natural disasters. By having data backups, law firms create a safety net, ensuring that critical information, such as client records and legal documents, can be restored promptly, minimising disruptions.
Business continuity: disasters, whether it's system crashes, ransomware attacks, or natural events like floods or fires, can bring operations to a halt. A robust data backup and recovery plan is essential for minimising downtime. Having backup copies readily available allows law firms to restore systems and data quickly, maintaining client trust and operational continuity.
Compliance: law firms are subject to stringent regulations regarding data protection and privacy. Adhering to regulations such as GDPR, HIPAA, or PCI DSS is not optional. Implementing robust data backup and recovery measures helps ensure compliance and enhances overall data security by encrypting backup data and implementing access controls.
Human error: despite best practices and training, human errors are inevitable. Accidental deletions or data overwrites can occur at any time. Properly stored backup files serve as a safety net, allowing for the retrieval of lost or corrupted data, minimising disruptions, and preventing potential losses.
Informed decision-making: in a competitive business landscape, data-driven decision-making is crucial. Law firms that can access and analyse their data effectively have a significant competitive edge. Regular backups ensure data availability and integrity, enabling informed decision-making and innovation.
Brand and reputation: Clients entrust law firms with sensitive information. A data breach or loss can severely damage a firm’s reputation. Having reliable data backups and recovery mechanisms in place demonstrates a commitment to protecting client data, enhancing trust, and protecting reputation.
Cost of potential loss: While investing in data backup and recovery solutions may seem like an additional expense, the cost of data loss or downtime far outweighs the investment. Efficient recovery processes save time and money in the long run, avoiding the high costs associated with data recovery or legal actions.
What can law firms do about it?
To mitigate these risks and ensure business continuity, law firms should take proactive steps to implement effective data backup and offsite storage strategies:
Regular data backups: Establish a routine for regular data backups, ensuring that any changes or additions to the original data are reflected in the backup copies. This practice, often automated through backup software, maintains synchronisation between primary and backup data sets.
Offsite storage: Store backup data in a separate, remote location to prevent single-point failures from affecting both the original and backup copies simultaneously. Common storage options include cloud storage platforms, external hard drives, and data centres.
Security measures: Implement robust security measures to protect backup data against unauthorised access or tampering. Encryption techniques and access controls are essential to ensuring data confidentiality and integrity.
Retention Policies: Develop and adhere to retention policies that dictate how long backup copies are retained. Properly managing retention policies ensures efficient use of storage resources while meeting data recovery objectives.
Regular Testing: Conduct regular tests of backup and recovery processes to ensure that data can be restored quickly and accurately in the event of a disaster.
How can Gallagher help?
Implementing robust data backup and offsite storage strategies is not just a best practice; it’s a necessity for law firms aiming to secure their operations and client trust. These core controls form an integral part of making law firms insurable.
Gallagher is here to help you navigate the complexities of cyber insurance, ensuring that your firm remains resilient in an increasingly digital world.
Let's talk
James Wall
Director, Technology & Cyber Practice
James_Wall@ajg.com
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Understanding the cyber exclusions within your professional indemnity insurance
Law firms are increasingly attractive targets for cybercriminals – but what can you do about it?
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