Can Throwing Away Your Business’ Old Electronics Cause a Lawsuit?

Have you ever donated or sold an old computer or smartphone? Then you already know the importance of wiping the hard drive before the device exchanges hands to prevent someone else from accessing your data. The same applies to your business’ electronics. But it goes beyond old computers. 

What many people don’t know is that modern printers and copiers also have hard drives, which means that every document—including sensitive info like voided checks, employee records, customer information and more—that is printed/copied is stored within the device. But people don’t often think to wipe these hard drives before tossing them. 

Businesses are often held financially responsible if they fail to protect sensitive information, like customers’ credit card numbers. Donating a printer without first scrubbing it could open up a world of data to potential hackers, which can lead to HIPAA fines and/or professional liability lawsuits against your business. 

To avoid claims of professional negligence, try the following tips before throwing away, donating or selling your business’ unused electronics. 

• Wipe all hard drives or overwrite the files
• Remove and destroy the hard drives
• Deliver electronics to e-waste centers, where hard drives will be wiped and destroyed
• Avoid pay-to-use devices when handling sensitive information 

Even with the best of intentions, it’s not hard for information to be exposed in the age of data breaches. Talk to your independent insurance agent about how professional liability insurance and cyber liability insurance can help protect your business from claims of professional negligence, as well as the aftermath of a cyber-attack. 

We’ve got you covered. Call The Insurancenter at 800-444-8675 for more information on Joplin business insurance.