Small business owners may wonder if its necessary for them to shred documents
. The answer to this is yes. If you employ anyone that you pay national insurance employment tax for, you are responsible for protecting their personal information. Failure to do so could make you liable.
Privacy laws hold all corporations responsible for keeping identifying information safe. It is the responsibility and the law to keep private information safe and secure. This also includes any information that is thrown away. There are two pieces of legislation that provide the guidelines for information protection.
The Fair and Accurate Credit Transactions Act (FACTA) was implemented in 2003. The primary purpose of the act is to prevent identity theft and ensure accurate consumer credit reporting. The Health Insurance Portability and Accountability Act (HIPAA) was implemented in 1996 with its privacy and security measures instituted in 2002. HIPAA relates primarily to the medical field but also has provisions for storage of employee medical data. Both acts have strict guidelines for the disposal of documents, electronic media and computer hard drives. These laws and potential liability makes it wise for any business to use shredding services.
A business that misuses employee or customer personal information can be held liable for damages and face federal compliance fines. A business may be held liable for documents placed in the trash. Even though the documents were put in the rubbish bin, the business is still responsible for any personal information contained in discarded rubbish. Use of shredding services transfers document custody to that service. This can help with potential liability claims against the business.
Shredding is cost effective for the small business. It does not make sense to pay employees to spend hours shredding documents. They should be paid to focus on the business. Shredding is good for the environment. Shredded documents can be recycled. It will also give an owner piece of mind. There will be no worry about private data falling into the wrong hands.
Dumptser diving is an easy way for personal information to land in the hands of identity thieves. Once the waste has been discarded, it is no longer considered private and can be used by anyone. A business has a responsibility to ensure all documents are properly destroyed before discarding.
A small business must shred documents before discarding them. It is cost effective to use a professional service to accomplish the task. Federal privacy laws provide manuals on compliance. Failure to comply with FACTA and HIPAA can create problems. Stiff fines and potential liability claims could ultimately bring a business to ruin. Use of a professional shredding service will ensure that documents are disposed of properly and wont end up in the wrong hands.