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DownStream Data Coverage—What Is It and Why Is It Important?

DownStream Data Coverage—what is it and why is it important?


Security with DownStream Data Coverage

Trusting your confidential information to a third party isn’t easy. You know how concerned you are about keeping your business and clients safe, but does your data destruction vendor have that same level of vigilance? What certifications do they carry? How do they vet their employees? Where does the material go after it’s destroyed? What kind of insurance do they carry to protect you and your business in case something goes wrong? All valid questions that should be answered prior to entering into any confidential destruction arrangement.

Insurance coverage for information security firms who handle many different clients’ information is tricky. Until recently, insurance companies only offered “off the shelf” professional liability policies to businesses like DataShield. Although these policies appeared to offer protection on the surface it became apparent through the claims process that they fell woefully short. Like an umbrella with strategically placed holes, these policies left the data destruction companies and their clients exposed.

A Professional Liability Insurance Policy

Enter DownStream Data Coverage, a professional liability insurance policy created specifically for the unique risks of vendors that provide data protection services to third-party clients. These additional protections include actual coverage for:

  • Rogue employees
  • Intentional acts
  • Negligence/accidents
  • Client data breach notification costs
  • Emergency remediation
  • Data extortion

DownStream Data Coverage, developed and offered through the National Association of Information Destruction (NAID), is only available to NAID AAA certified vendors. While our AAA Certification from NAID provides assurance of our strict policies and high standard, DataShield opted to purchase this additional policy to further protect our customers.

It is our privilege to work with each of our valued customers and to provide DownStream Data Coverage. DataShield will continue to research and embrace insurance products and technologies that provide the highest security and make sure we leave nothing to chance.

For more details, visit the Downstream Data Coverage website.

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