Health care company Centene’s recent breach of contract complaint against Accellion, a cloud solutions company that suffered a sophisticated cyberattack over the winter, serves as a warning bell for similarly positioned service providers. Now may be the time to re-examine strategies for negotiating data breach indemnity clauses, a path generally less traveled in cloud computing terrain.
Indemnity for Data Breach Goes Against the Grain
Accellion’s acceptance of broadly worded language in a 2015 agreement with a Centene subsidiary made it vulnerable in a traditional area of contract law: the often-overlooked indemnification clause.
In the world of cloud computing transactions,...