Business owners — and homeowners alike — are advised to purchase insurance against the possibility of loss or damage of physical property as the result of fire, flooding, a tornado, a hurricane, or other act of Mother Nature and even liability insurance to provide protection from potential legal threats. However, most do not insure the most business crucial part of their business — their data.
In addition to insuring physical property and liability risks, it pays to take the necessary steps required to ensure the safety of — and ready access to — financial information, customer information and other data necessary to running your business through effective data back up systems.
Today, data back up systems are simple, automatic and cost-effective for small and medium size businesses (SEE BLOG POST “LOST DOLLARS.”). Whereas, the cost of not having a back up system in place can be astounding or even devastating:
- 94% of companies suffering from catastrophic data loss do not survive. 43% never reopen and 51% close within 2 years. (University of Texas)
- 70% of small companies (fewer than 100 employees) that experience major data loss go out of business within a year. (DTI/Price Waterhouse Coopers)
- 30% of all businesses that have a major fire go out of business within a year and 70% fail within 5 years. (Home Office Computing Magazine)
The stats are scary, but really unnecessary given the accessibility of back up systems to businesses of all sizes. Don’t be in the 94% of businesses that would not survive—investments in reliable data back up systems are some of the most critical and frequently used “insurance policies” you could acquire as a business owner.
Brantley Pearce – Director of IT Services
Brantley leads a team of IT professionals whose primary goal is to help organizations use their IT resources in a way that helps them proactively maintain their network and allows them to be more productive. He joined RJ Young in 2005 but has been in the IT industry for almost a decade. Brantley is originally from Houston, Texas and works out of our Nashville, TN office. In his spare time he volunteers for multiple organizations. Brantley is married and has two daughters.