CLOUD COMPUTING - March 10, 2011

Thank you to all that attended our Cloud Computing seminar. We had a fantastic turnout. The two panel discussions covered a wide range of information, and were very well received. Special thanks to all of our panelists.

A video of each panel is now available for you to view. Please forward this link to any colleagues who may have missed the live event.

Cloud Computing Panel #1: What is Cloud Computing, and what are the security & legal risks of putting your data into the cloud?

In our first panel, attorneys from cloud service providers Rackspace and NetSuite debated with a security specialist from Trend Micro on the relative security of the cloud environment. All agreed that cloud providers have a vested interest in providing the best possible security, and in many cases that security will be better than what a company might be doing for its own network. A Baker & McKenzie attorney specializing in privacy and security noted that in the event of a data breach, the ultimate responsibility for compliance with the spider web of privacy breach notification laws rests with the data owner, and cloud providers offer limited indemnification.

Cloud Computing Panel #2: Is "Cyber Liability" the answer? Insurance trends that impact the Cloud.

In the second panel, insurers Chartis and Zurich compared notes with brokers JLT and Woodruff-Sawyer on the evolution of insurance products designed to transfer cyber risk. Whether a company keeps all of their data in-house or puts it in the cloud, modern cyber liability policies can cover the loss associated with a data breach. Some of these losses are the first-party costs to notify customers or employees of a breach and offer credit monitoring as required by state laws. The policies also cover the liability associated with a data breach, including claims by customers, credit card issuers, and regulatory bodies. But not all cyber forms are created equal – and it pays to compare options carefully.

For more information, please contact:

Lauri Floresca, Senior Vice President, Woodruff-Sawyer & Co., 415.402.6523, lfloresca@wsandco.com

Megan Colwell, Senior Vice President, Woodruff-Sawyer & Co., 415.399.6330, mcolwell@wsandco.com