Big data refers to extremely large groups of information that require advanced computation to analyze. The results of this data are used to predict future results or behaviors and are most often used by businesses to develop marketing strategies, increase their clientele and improve customer service.
Magnitude of Information
Companies that gather big data have access to information on people around the globe. These facts come from multiple sources such as business transactions, social media and machine-to-machine data. Extreme amounts of data should always be covered by insurance.
Personal Nature of the Data
Peoples’ pictures, emails and video and audio files are just a part of the information gathered by these companies that most people would prefer to keep private. Even public record data such as where someone lives or works is something not many people would appreciate being broadcast. This is partially why insurance for big data is vital.
Risk of a Data Breach
Because big data companies collect so much information from such a variety of sources, they are at high risk for a data breach. Not only are they vulnerable to cyber attacks, they also run a larger risk of employee theft or mistakes and system or computer malfunctions. The cost of a data breach to this type of company is extremely high. Insurance for big data could save a company many thousands of dollars.
Many companies are beginning to rely on big data to help their businesses function more efficiently and effectively. Insuring this information will keep them running smoothly and successfully.