Minimizing Identity Theft to Reduce Business Insurance Claims

Identity theft is a growing threat to today's business owners. Small companies and large corporations face a change that identity theft will occur. Much of this comes from threats to employees and from employees.

Most businesses need employees. It is not an option to stop hiring people. So, what can employers do to minimize the risk of identity theft occurring?

Understand the Risk

Identity theft can occur in several ways. A bad employee can steal personal information from a customer. A management professional may access the personal information of an employee. In both situations, the business is at risk. And, in both situations, business insurance may help cut the losses to the business.

How to Protect Employees

The first step for the business is to ensure employees are safe. It is the responsibility of the business to protect an employee's personal data. There are numerous ways to do so:

• Limit access to sensitive information to those who have a true reason to use it. Even then, make sure it has password protection.

• Ensure sensitive information is never visible on login screens or through personnel files.

• Be sure any software used to manage this data tracks who is accessing it at all times. This can pinpoint exactly who could be at fault.

Creating a confidential method for protecting employee data is a very big component of providing a safe work environment. Update systems routinely to ensure safety.

Protecting Customer Data

It is just as important to protect sensitive customer data. Employees can cause this type of identity theft risk. To do so, consider options such as the following:

• Minimize access to personal information. Control which employees can access this information at any time.

• Allow the customer a way to enter information privately. This is important for social security numbers or credit card numbers. Don't allow employees to watch them enter this information.

• Routinely check procedures to ensure employees follow them. Update equipment to allow for tracking of access to sensitive information.

Identity theft is a big risk for all business owners. Comprehensive business insurance can help to minimize many of the financial risks here. However, these claims can be large and costly. They can also damage the employer's reputation. Take steps to minimize this risk and be vigilant at monitoring for it.

Need business insurance? Call Bromell Agency, Inc. at (318) 251-1212 today. We can help you get a fast, free policy quote.