I run my business from a single Laptop. I have insurance in place to replace the laptop it it gets lost or stolen, and I have funds in place to almost instantly replace the laptop or components if for any reason it fails.

My laptop goes everywhere with me, client meetings, sales meetings, holidays, everywhere. There’s no better way to demonstrate the simplicity of my software than to have a working copy right there.

But I’m a pessimist; everytime I leave the house, I assume that someone is going to offer not to stab me in exchange for my laptop. Everytime I go to the toilet, I assume that someone is going to break into my home and steal my laptop, everytime I turn away from my laptop, I assume that the harddrive will make a loud crunching noise as it grinds my data into sawdust. Everytime I leave my hotel room for breakfast, I assume the cleaner is going to run off with my laptop.

If any of this does happen, I’ll have a maximum of three phone calls: Police, Insurance Company, PC World.

I won’t have to change my client’s passwords
I won’t have to report my credit card or anyone elses card as stolen
I won’t have to phone my clients to notify them of the loss
I won’t have to inform my clients to change the passwords they have entrusted me with
I won’t have to scare my clients into changing their bank accounts
I won’t have to ask for copy invoices from suppliers
I won’t have to look up my suppliers and clients details anywhere
I won’t have to inform my bank of the loss
I won’t have to change my internet banking details
I won’t have to scrutinise every transaction in my future bank statements for 6 months
I won’t have to lose the trust and faith my contacts have in me
I won’t have to worry about getting family photos back
I won’t have to find my iTunes invoices and re-download all my tracks
I won’t have to worry about losing days of work, or even hours.
I won’t have to worry about who has access to the data on the laptop and what they can do with it.
I won’t have to worry about lost phone numbers or emails of my biggest clients, or even my smallest ones

In fact if my home and office burn down tonight and I narrowly escape with a single pair of jeans, T-shirt and naturally my wife. I can have my business backup and running as if nothing happened in a couple of hours.

I am entrusted with very sensitive data, I regularly have enough information about my clients to take loans out in their names, open bank accounts or on some occasions even obtain a passport.

But I can live without worrying? And I don’t resort to ignorance like so many [government officials]

Everything I value is backed up.
It is backed up on an external harddrive (£60) in my office, encrypted, secured and locked in a safe.
It is backed up on an external harddrive (£60) at home, encrypted, secured, and locked in a safe.
It is backed up online (£40pcm, part of my reseller web hosting, but can be bought through any good IT or backup company, I can recommend a few)
I make it a policy to not store sensitive information I don’t need.
If I do need it, I use a simple encryption software and hide the encrypted volume so noone even knows to look for it, let alone how to get into it. Once finished, all information is deleted. (open-source software truecrypt £free)
I have £1000 stored in a completely separate bank account for instant laptop replacement (will increase to cover other office-related costs)

This system is simple, reliable, it takes me 10 minutes a day waiting while it updates my Hard drive backups, and costs me £600 per year + £1000 replacement fees (variable for what you need to replace to operate.)

When I go to bed, my laptop stays downstairs packed and ready for the office tomorrow. It’s easy to pick up as I run through the door, not hidden, not locked in a safe, and yet I can sleep soundly.

I don’t offer this as a service, but if you haven’t got something setup, talk to your IT contact, I can recommend a few, it will be one of the most relaxing phone calls you’ll make.

How much information can you afford to lose and where is it going?