The Value of a ‘Compliance First’ Mindset
- PCNet
- May 21, 2021
- 2 min read
Updated: Oct 9
How a ‘Compliance First’ Mindset Limits Liabilities
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
Accidental Errors and Omissions
Coverage Doesn’t Extend Beyond the Mentioned Timeframe
A Third-Party or Contractor Is at Fault
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
This extends beyond business tools but performing a business tools audit is a good place to start.
The Cost of Non-Compliance
HIPAA Violation
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.
PCI-DSS Violation
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.
GDPR Violation
Fines can be anywhere from 2% to 4% or more of company turnover based on the severity of the violation.
Business Tools That Must Be Compliant
Voice Services like VoIP
Cloud Storage and File Hosting
Document Sharing and Transfer Services
Productivity Tools
Communication Tools
Any Digital Tool, Product or Service Used for Business
Ready to Get Compliant?
Contact us to know more about the ‘compliance first’ approach and to schedule your technology compliance assessment to detect compliance gaps. sales@pcnetinc.com417-831-1700 2026 E Phelps St. Springfield, MO 65802
Sources
The Software Alliance
National Library of Medicine
Securityboulevard
GDPR Associates
