Are you trying to deploy the most affordable technology solution? Chances are it won’t be compliant. Using solutions that do not meet security, encryption and reporting measures outlined by regulations that you are trying to meet (HIPAA, PCI-DSS & GDPR) will make your business non-compliant and violate compliance insurance requirements. Alarmingly, 40% of users worldwide don’t have proper software licenses to meet compliance requirements for their industry.
Adopt the ‘compliance first’ approach for your business so that it meets minimum regulatory requirements to protect against fines and stay in compliance with liability insurance requirements.
THESE MISTAKES CAN INVALIDATE YOUR LIABILITY INSURANCE CLAIMS
Though different insurance companies have a varying set of guidelines and clauses, these are some major reasons claims get rejected.
• Companies have poor business practices in place — this includes the use of non-compliant technology solutions by the business.
• Companies failed to document preventative measures taken.
• A third-party or contractor is at fault.
• Accidental errors and omissions.
• Coverage doesn’t extend beyond the mentioned timeframe.
THE COST OF NON-COMPLIANCE
The penalties vary depending on negligence. It can be anywhere between $100 to $50,000 for individual violations, with a maximum fine of $1.5 million per calendar year of non-compliance.
Penalties can range from $5,000 to $100,000 per month by payment providers (VISA, Discover and others). The fine depends on the volume of clients and transactions.
Fines can be anywhere from 2% to 4% or more of company turnover based on the severity of the violation. If the insurance company invalidates your liability insurance claim because of something as simple as using a single non-compliant technology solution, the fines would pass to your business—instead of insurance covering them.
APPLY THE ‘COMPLIANCE FIRST’ APPROACH TO PRODUCT SELECTION
While ‘compliance first’ extends beyond business tools, performing a business tools audit is a good place to start.
Contact us to know more about the ‘compliance first’ approach and to schedule your technology compliance assessment to detect compliance gaps.
We’re ready to help you work smarter.
Call us at (865) 524-1124 or use this contact form. Let us know what you’d like to know more about and one of our experts will be in touch with you soon.