Business data stored in a digital format online or on a hard drive are considered digital assets.
What are digital assets?
A file is considered a digital asset when it is digital in nature (as opposed to physical property) and has unique properties. The digital data must provide value to the company and it cannot be easily replicated or replaced. For example, stock photos do not qualify as digital assets.
Examples of digital assets
A company’s digital assets could include:
- Audio files
- Excel sheets
- Word documents
Digital assets protection
A business’s digital assets can include personal and sensitive information, such as client credit card numbers and addresses. A data breach could expose this information and lead to a lawsuit from a client, along with other expenses.
Cyber liability insurance is the policy that helps cover a business’s costs following a data breach or cyberattack. It can help pay for data recovery, notification of affected clients, legal expenses if you’re sued, and more.
First-party vs. third-party cyber liability insurance
There are two types of cyber liability insurance. First-party cyber liability insurance covers your expenses if there’s a data breach at your business. Third-party cyber liability insurance covers your legal expenses if a client sues you for failing to prevent a breach at their business.
How to manage digital assets
Every business should have a process for making sure that digital files are secure. Many businesses use digital asset management (DAM) software to safely store, protect, and manage digital assets.
DAM software allows businesses to quickly search and access files while keeping their data safe. The combination of DAM software and cyber liability insurance provides strong protection against hackers.
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