The legal industry has yet to create regulatory standards for cloud service providers; as such, lawyers currently looking to store client data in the cloud must be vigilant when examining a provider's service-level agreement (SLA) to protect themselves against security breaches and data loss. An article in the April 12, 2013 issue of Lawyers Weekly provides an overview of key issues to consider.
The limitation of liability would be a red flag, says Chris Bennett, head of the Davis LLP IT Law Group. "Even if they take steps to protect your data, they'll say: 'Our maximum liability to you is three months of services.' You don't get much protection, if you get sued," he explains in an interview for the story.
Chris also cautions that privacy is often overlooked in SLAs. "We're always adding a privacy clause," he adds.