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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3840
Experience:  Solicitors 2 years plus PQE
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How do we cover against data liability whilst working with

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how do we cover against data liability whilst working with companies IT?
Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. What sort of data is it? Is it personal data (i.e names address etc) or confidential information? What sort of service are you providing? Kind regards AJ
Customer: replied 2 years ago.
We are an IT consultancy handling email, server and computer installs (mainly Apple). The concern being if we were handling data, sensitive or important to client and it was damaged or lost, could we guard against liability?
Thank you.
Do you have terms and conditions? Normally your terms and conditions should contain a limit of liability something that says:
(i) You are not liable for indirect or consequential losses;
(ii) Your liability is limited to an annual aggregate of £x in respect of all claims arising from the service.
Then you take the view that issues such confidentiality and data protection are just a liability that forms part of the service provision.
Do you have any terms and conditions?
Kind regards AJ
Customer: replied 2 years ago.
Yes we do. They are on our website. ( The text doesn't appear to have the areas you added specifically so should we simply add that in to our existing terms?
Thank you.
For items such as breach of confidence or breach of data protection, the losses for you breach can be completely unknown. Ideally, as data security is fundamental to your service provision, you should try and limit your liability for these items. The issue is you cannot do this unilaterally you have to include a limit of liability before the service starts, otherwise you would have to notify the client of the changes to your t and c s and ask for their consent.
If they wont agree to an aggregate cap on your liability (you will need to suggest the figure here) - at the very least you should insist on excluding liability for indirect and consequential losses - at least then you can have handle on the risk you are accepting.
Kind regards AJ
P.S You do have this clause:
7.2 The Consultant shall have no liability to the Client for any indirect, special or consequential loss to the Client arising out of or in connection with the provision of any goods or services pursuant to this agreement (except in respect of death or personal injury resulting from negligence) and the total liability of the Consultant for any other loss of the Client arising pursuant to this agreement in respect of any one event or series of connected events shall not exceed the indemnity cover (if any) arranged pursuant to the Terms of Engagement or if no such cover has been agreed between the Client and the Consultant the charges payable by the Client in respect of the Consultant's services hereunder.
Just to add - your liability will be limited to your indemnity cover - this is for any claim arising from the service provision, whether it is breach of confidence or otherwise.
Personally I would not link liability to indemnity cover as this will make your premiums more expensive, I would make your liability a figure relative to the fees you charge in a given year.
Kind regards
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