January 18, 2025, IT liability is an issue companies must carefully consider as they enter 2025. The threat landscape is evolving rapidly, with cyberattacks becoming more sophisticated and effective every day. In addition, data privacy laws also place more responsibility on companies that gather and store information related to customer identity and activity.
To minimize risk and maximize security, every company should take steps to address the following key IT liability concerns:
Third-Party Audited Controls
For companies that manage sensitive information or outsource management, third-party auditing of controls is a prudent investment. By establishing a control framework-based third-party attestation that shows compliance with best practices, companies communicate a strong level of commitment to keeping data secure.
Relying on third-party auditors also helps companies ensure they operate based on the most up-to-date insights on security and efficiency. Third-party auditors provide the expertise needed to stay ahead of hackers and satisfy regulators.
Insurance
Client IT issues can quickly turn into allegations of negligence, errors, or omissions. Insurance protects companies from the financial loss that can result from those claims. Investing in insurance can provide protection against claims relating to negligent advice, breach of contract, copyright infringement, or misrepresentation of services or qualifications.
Companies providing IT products or services should have professional errors and omissions insurance, which typically covers damages and legal costs. Companies that utilize third-party providers to store sensitive customer data should have first-party cyber insurance, which covers the financial ramifications of a data breach.
Read the full article on itprotoday.com
Rob Scott
CEO & Co-Founder, Attorney
Attorney with 25+ years of MSP legal experience. Co-Founder of Scott & Scott, LLP and Monjur. Has overseen contracting for 1,000+ MSPs.
Rob Scott is an attorney with more than 25 years of experience in MSP and technology law, and the co-founder of both Scott & Scott, LLP and Monjur. He has overseen customer contracting for more than 1,000 managed service providers and built Monjur to bring attorney-supervised contract intelligence to the MSP industry.
Licensed in Texas since 1999, Rob earned his J.D. from the Maurice A. Deane School of Law at Hofstra University and his B.A. in Economics and Philosophy from Austin College. His practice focuses on software licensing, software audit defense, data privacy, and vendor risk, representing MSPs and enterprise clients in transactions and disputes with major software publishers.
