MSPs & MSSPs: Do Your Service Agreements Protect You?
Maybe your predecessor had a lawyer draft a contract in 2002 or maybe you downloaded a standard contract from legal zoom. Relying on either method is insufficient. Cybersecurity is one of the fastest growing areas of the law in terms of changing litigation, insurance, and legislation. MSPs and MSSPs around the country are being held liable by Customers, their Customer's other vendors, and their Customer's insurers because they were not properly protected in contract and not properly insured.
In the past 5 years, the California Consumer Privacy Act was enacted, New York's Shield Act became effective, GDPR swept the European Union, the EU/US Privacy Shield was invalidated, every single U.S. State and territory passed its own data breach notification law, the 21st Century Cures Act was passed, the Department of Defense announced the Cybersecurity Maturity Model Certification process, the Federal Trade Commission issued fines in the BILLIONS of dollars (with a "B"), and cybercrime consistently rises in both cost of remediation and number of attacks.
Think it's time to have a lawyer review your customer agreements? Going into the new year is the appropriate time to renegotiate and evaluate existing customer relationships and insurance coverage.