What Is Offsite Storage?

Table Of Contents:

• What Is Offsite Storage?
• How Offsite Storage Works
  • Steps Involved in Physical Document Storage
  • Digital Media Storage
  • Examples of Offsite Records Storage
• Onsite Versus Offsite Storage — Key Differences
• Benefits of Offsite Storage
  • Cut Costs Without Cutting Corners
  • Your Safety Net for Disaster Recovery
  • Stay Compliant Without the Headache
  • Clear the Clutter, Reclaim Your Space
  • Grow Without the Growing Pains
• Industry Examples of Offsite Storage
• Get Secure, Compliant Offsite Storage Solutions

It refers to storing your business records and data at a secure location away from your main office. This protects business documents and records, as well as digital media, from theft, natural disasters, and system failures.

Secure offsite storage facilities help your business reduce expenses on in-house space, equipment, and staff. Offsite storage solutions also help you comply with relevant laws and industry standards. Offsite records storage clears the clutter from your business premises.

Secure offsite storage can also serve as your safety net in the event of a disaster, such as a cyberattack.

Think about the boxes of files crowding your office right now. Financial records from five years ago sit next to current contracts. Medical files consume entire rooms, while staff struggle to find space for daily work. 

What would happen if a fire destroyed your main office? Would you still have access to your financial records and patient files?

Professional offsite storage solutions can transform how your business manages its information assets.

How Offsite Storage Works

The process begins when you identify which records need off-premises storage. Professional offsite storage providers will assess your needs and recommend appropriate service levels for different record types.

Steps Involved in Physical Document Storage

Here are the steps involved in physical document storage:

 

1. Initial inventory and preparation: You organize records into clearly labeled boxes or files.
2. Secure transportation: Trained drivers pick up your documents using GPS-tracked vehicles with sealed containers. 
3. Professional cataloging: Staff index each box and document using barcode systems for instant tracking.
4. Climate-controlled storage: Your records enter temperature-regulated facilities with 24/7 monitoring systems
5. Digital inventory access: You can view your complete inventory through a secure online portal at any time.
6. On-demand retrieval: Request specific files online for next-day or emergency same-day delivery.

Digital Media Storage

Digital media storage works slightly differently from paper documents. Backup hard drives and optical media require climate-controlled environments. Trained professionals move these materials to media vaults that maintain precise temperature and humidity levels throughout the year.

Modern records facilities use sophisticated tracking systems that monitor every interaction with your documents.

Examples of Offsite Records Storage

An example of offsite records storage is storing paper files in a secure, climate-controlled warehouse. Another example is saving backup media tapes in a fireproof vault.

Example 1: Picture a California law firm storing closed case files in a professional warehouse 20 miles from their downtown office. The firm maintains digital copies, while a records facility stores original documents in climate-controlled storage.

Example 2: Consider how a medical practice handles patient records after the mandatory retention period begins. Active files stay in the office for immediate access during appointments. Inactive records move to secure offsite storage, where they are accessible within 24 hours when needed. The practice frees up three examination rooms previously used for file storage.

Example 3: Manufacturing companies can store quality control documentation and compliance certificates offsite. Banks may archive loan documents and transaction records in facilities that meet federal regulatory standards. Universities may preserve student transcripts and administrative records for years without sacrificing classroom space.

In digital terms, it may mean saving sensitive data to a remote server rather than a local network.

Onsite Versus Offsite Storage — Key Differences

Understanding the difference between offsite and onsite storage can help you make better decisions about document management. Both offer clear advantages, depending on your business needs and regulatory requirements.

Comparison Factor	Onsite Storage	Offsite Storage
Initial cost	High equipment and setup expenses	Low startup with monthly service fees
Accessibility	Immediate access during office hours	24/7 online access with next-day hard copy delivery
Security	Dependent on office safeguards	Professional surveillance, access controls, and fire suppression
Compliance	Self-managed with internal resources	Professional compliance documentation and auditing
Disaster recovery	Vulnerable to local disasters	Secure offsite storage facilities protect files
Space usage	Consumes valuable office space	Frees up workspace for revenue activities
Scalability	Requires physical expansion or renovation	Scales instantly without infrastructure changes
Climate control	Expensive to maintain	Professional-grade environmental management included
Staff requirements	Dedicated personnel for filing and retrieval	Outsourced to trained professionals

Benefits of Offsite Storage

Smart businesses recognize offsite storage as more than simple document warehousing. The benefits extend throughout your business, improving operations while reducing risks and costs.

Your documents receive protection that exceeds anything achievable in typical office environments. Here are the advantages of offsite records storage.

Cut Costs Without Cutting Corners

Offsite storage lowers overhead costs associated with maintaining expensive onsite storage facilities.

Keep in mind that the cost per square foot for office space in major cities is expensive, with businesses paying $215 per square foot in San Jose, CA This means that a single 500-square-foot filing room could cost tens of thousands.

Professional storage costs a fraction of that amount while providing better protection and organization.

Calculate your true storage costs by including these overlooked expenses:

• Office space rental or ownership costs
• Filing equipment purchases and maintenance
• Climate control and utility expenses
• Employee time spent filing and retrieving documents
• Insurance premiums for document protection
• Compliance audit preparation time
• Lost productivity from disorganized files

With Corodata, you can save dollars compared to in-house storage without compromising security or service. You eliminate equipment purchases while reducing the administrative burden on staff. Employees can focus on main business activities instead of managing filing systems.

Budget predictability improves with fixed monthly storage fees replacing variable facility costs.

Your Safety Net for Disaster Recovery

Offsite storage protects business records from disasters by keeping them in a secure location away from your main office. 

According to the National Oceanic and Atmospheric Administration, there were three billion-dollar disasters in California between 2022 and 2024. In fact, Southern California was underwater at the start of 2024. Such floods, fires, earthquakes, storms, and cyberattacks can threaten business continuity without warning.

What’s worse? The Small Business Administration reports that roughly 25% of businesses don’t reopen after such disasters.

Geographic separation creates a disaster recovery plan for your business. Your records survive, even if your office doesn’t. The insurance claims process is faster when proper documentation is readily available. Business operations resume quickly since business data remains accessible.

Professional offsite storage facilities use various disaster prevention measures, including:

• Fire suppression systems with early detection
• Earthquake-resistant building construction
• Flood prevention through elevated storage
• Power backup systems that maintain climate control
• Regular disaster recovery testing protocols

Recovery time objectives improve when documents exist safely offsite. 

Stay Compliant Without the Headache

Offsite storage guarantees compliance by storing records in facilities that meet strict regulatory standards. Laws, such as the Health Insurance Portability and Accountability Act (HIPAA), establish federal standards to protect patients’ health care information from disclosure without their consent.

 

Health care providers must maintain HIPAA compliance for patient records in their facilities. Financial institutions must follow the Sarbanes-Oxley Act, which demands a seven-year retention period for audit work papers. Legal firms must preserve client files according to state bar regulations.

Professional storage providers understand the complex data laws across industries. They maintain the necessary certifications, including the Statement on Standards for Attestation Engagements No. 18 (SSAE 18) and the National Association for Information Destruction (NAID) AAA. Regular third-party audits verify whether you comply with regulations and provide compliance documentation.

Compliance benefits include:

• Automated retention schedule management
• Certified destruction when retention expires
• Complete chain-of-custody documentation
• Access to control logs for audit trails
• Compliance certificate availability

Offsite storage helps you meet compliance obligations without overloading your internal teams. 

You also avoid costly penalties. For instance, HIPAA violations can reach $50,000 per incident. This could hurt your bottom line.