Utilizing a cloud platform can give an organization access to a host of enhanced security features, but it also comes with its own set of security risks.
Companies should therefore evaluate and measure their needs carefully before deciding to use the cloud, experts say.
A policyholder should also pay strict attention to any service agreement entered into with a cloud provider, sources said.
“A policyholder should make sure to have some form of contractual protection with a cloud services provider for issues such as notification in the event of any incident on the third-party platform and not just one affecting the policyholder,” said Mr. Gold.
A policyholder will also want to have some sort of cooperation agreement with a cloud services provider to make information available to investigators and regulators, Mr. Gold said.
“If I am a policyholder and I’m using the cloud, especially for any type of sensitive information, I will definitely want to have some sort of contractual leverage to pull information in the event of any cyber intrusion,” Mr. Gold said.
To read the full article: Be wary of hosting data in the cloud