December 3, 2021

DataFort Warns of 'Stable Door Syndrome' on Data Loss Insurance Policies

Leading Off-Site Back-Up Provider Wants To Stop The “DataHorse From Bolting”

Release date: June 2004

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."

According to the BT report, more and more companies are taking up such insurance policies. However, it also reveals that 24% of companies have no data back-up system in place whatsoever, while a shocking 87% don’t back-up laptops.

“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.”

Smith cites recent threats to business data from solar flares and the proposed changes to the Civil Contingency Bill, as reasons why a preventative approach to data recovery is a must. “Had we taken a direct hit from the largest solar explosion there would have been considerable disruption to power grids. Similarly, new emergency legislation can bar you from your premises and confiscate equipment indefinitely; you just can’t plan for these situations.”

Smith is urging companies worried about their back-up strategy to take advantage of DataFort’s free ‘Backup Health Check’, which delivers an audit of current backup systems and offers advice on improving risk management.

Concludes Smith: “For many companies their data is critical to their business, and an insurance pay-out is of little use if there isn’t a company to continue trading. Solutions exist that can automate data back-up making it hassle free and extremely cost effective. The best form of insurance is to prevent a critical situation in the first place.”


DataFort provides dependable secure off-site computer information storage with a focus on functionality and convenience for the end user. The company was founded in 2000 and is headquartered in Guildford, UK and New York, USA. It’s software and services are used by thousands of businesses worldwide - ranging from small SMEs and schools through to quoted companies and local government. Every hour of every day someone, somewhere backs up with DataFort.


Marcie Terman
T: +44 (0) 1483 872 052