The world of business records management is experiencing exceptional change. Whereas once many businesses and legal practices kept stores of physical records, many are now opting for more compact, more affordable digital storage solutions. Technology has advanced to make backing up information to the cloud simple, secure and reliable for any business looking to store highly sensitive data–as is the case in legal professions. But with the shift from hard-copy to digitized storage, questions regarding how to approach digital business records management and storage arise. Follow these business records management best practices to keep your records and client case files stored appropriately and in-line with state regulations.
Secure record retention solutions
Digital storage solutions are quickly becoming the preferred method of business records storage and management. Electronic documents are the only way to properly search for specific words or sections without a legion of assistants to pour over pages. Add to that the financial and space saving benefits of digital storage and it’s easy to see why more lawyers are opting for digital solutions.
However not all digital document retention solutions are created equally. Law firms shouldn’t make the mistake of storing the information they need to retain in local devices and computers alone. This poses the risk of data loss due to employee error, device damage, natural disaster, data breach, viruses and more. Keeping all of your data in one singular location is never a good idea and physical devices can’t be fully depended upon.
Instead, many lawyers are looking to the cloud for secure digital record retention solutions. When push comes to shove, online backup is the only foolproof way to make sure client documents and information remains safe and secure. It ensures that if information is ever corrupted, lost or irreversibly changed in one file, there will always be a secondary, intact copy ready to take its place and keep the chain of documentation intact.
Selecting a cloud backup solution
The cloud solution you choose to backup your records should be comprehensive in terms of security, storage, and recoverability. Security breaches, viruses and unauthorized access are a harsh reality of doing business in today’s digital environment, but with the right cloud backup solution, your law firm can rest assured that your data is being protected by the strictest of digital safeguards.
The cloud backup plan you choose for your business should provide you with end-to-end encryption so that your files remain unreadable to unauthorized users even during transit to the cloud. Encryption should also meet strict security standards, either 256-bit encryption, AES encryption, Twofish, or Triple DES encryption.
In addition to encrypting your data, your cloud backup provider should store your data on redundant servers, housed within secure data centers. Data centers should pass an annual SSAE 16 Type 2 audit to verify its procedures and facilities are top-notch. It should also include a range of digital and physical safeguards. For instance, business cloud backup solution provider Nordic Backup equips its data with multiple levels of access control, from armed guards to biometric fingerprint scanners and uninterruptable power supplies to ensure client data is always protected and retrievable at all times.
State record retention lengths
Every state establishes its own record retention lengths for client records, account funds and property. Although there is some variation, the best rule of thumb is to keep client data stored for a minimum of 7 years after your representation with them has concluded. You can verify your state’s retention lengths here.
Some exceptions to these retention lengths do apply depending on the nature of the case. For instance files involved in criminal cases should be retained for the client’s lifetime, or until their consent is given. Other documents, like tax files, should also be kept longer if the client is still exposed to some related liability.
When to keep paper records
While it’s convenient to move every file into cloud storage for safekeeping, there are certain times when physical documents should be retained. In most cases, client records may be stored completely electronically; however, before you dispose of hard copies you should notify your client and also sort through their case file for any documents that have independent legal significance, such as testamentary documents, birth certificate or marriage certificates. As a rule of thumb, irreplaceable documents retain their hard copy status.
If there is any question as to whether you need to keep or are free to discard a document, check with your malpractice carrier.
Include a retention policy in your representation agreements
Your firm is not responsible to hold onto client records forever, and once your statutory minimums and due diligence are met, you should be free to properly dispose of these client records as you see fit. To protect yourself, clearly state your records retention policy in each of your client representation agreements so that you have a trail of proof that your clients have been made aware of your policies.
In Summary
Your digital business records storage management policies should keep 4 things in mind: privacy, redundancy, statutory requirements, and client communication.
Peace-of-mind over data retention today is both more complex, yet paradoxically easier than it’s ever been when using the right cloud backup service. Cloud backup is an excellent solution for retaining your records with undeniable privacy and redundancy. For a complete cloud backup solution for businesses with all of the bells and whistles your firm needs to uphold these best practices, try Nordic Backup. Nordic Backup encrypts all backup data with high-level 256-bit AES encryption using a private password only you know and safely stores data across redundant servers so your data is always ready to be retrieved remotely, whenever you need it.
