DataFort, the leading provider of managed off-site data backup, is warning companies against relying on insurance policies that pay out on the loss of business-critical data. The warning follows research from BT which suggests that as many as 29% of businesses with insurance policies are covered for compensation should the worst happen to their digital information.

“While many of these policies require claimants to have data back-up policies in place, the quality of these solutions differs widely,” explains Gavin Smith, Founder and CEO of DataFort. ”Physical storage is fallible, and while the safety-net of compensation is welcome there is a real danger of companies becoming complacent over their data back-up policies. Data loss should be prevented not compensated."

“The research is a real Jekyll and Hyde affair,” adds Smith. “On one hand it shows a sizeable percentage of companies paying for insurance against data loss, while at the same time revealing worrying levels of ambivalence when it comes to installing back-up systems. There appears to be a great deal of confusion, at least among BT’s research sample, in how to go about assessing and implementing a robust, cost effective data back-up and storage solution.”