Business Security Information

A couple of months ago I was having a discussion with a contractor who had thousands of dollars worth of tools and equipment stolen.   I was discussing with him different ways to make improvements to security so that he would be less likely to experience some of the large security losses he had suffered.  One of his comments was that he had a $1000 deductible with his insurance company so he would never spend any more than that to improve security.   I realized then that a lot of businesses really feel that security is just a waste of time and money.  In this short article, I am going to share some of the reasons security should be thought of as an investment and not a waste.

How Much Is Security Worth

First of all, when a business suffers a loss, the insurance deductible is not the only money it loses.  In the contractor’s case, he had to spend time determining what was stolen and reporting it to the police, and then over the following weeks, he had to spend a number of hours identifying stolen items that had been recovered.  Secondly, a work stoppage occurred at the job site until replacement materials and equipment could be brought in.  This meant down-time on the job, non-productive employees, and a rush to purchase supplies and equipment so the job could continue on time.  Other contractors had to slow down or stop work as well until everything was back on track.  Once work resumed, overtime had to be paid in order to get back on schedule.

There were other related costs including damage to the storage trailer and other smaller issues but all of it should have been considered in determining if security was worth the investment.   Like I told this contractor, security measures don’t have to be perfect, they just have to be better than the next business.  It is kind of like the story about out-running the bear.  In reality, you only have to outrun the person behind you, not the bear.  To sum it up, criminals will always look for the easy target.

Value of Security

Always look beyond your insurance deductible to determine the true costs to you or your business when you experience a security loss.  Only by looking at the true costs of a security incident or breach, can you determine what you should spend in time and money on the front end to reduce the risk of a security incident from occurring.  It is always more expensive (time and money) to react to a security incident than it is to look ahead and implement adequate security before something occurs.

Related posts:

1. Disaster Planning For Your Business
2. Are You Experiencing Information Overload?
3. Addressing the Most Important Business Security Issues