Transcending The Cloud - A Legal Guide to the Risks and Rewards of Cloud Computing: Cloud Coverage



Where clouds form, rain follows. Insurance should be there to protect you. This article outlines steps to consider so that coverage holds when the rain hits.

Cloud Computing may create new risks and exposures, financially as well as reputationally. Traditional and more recent insurance coverage may come into play. On the traditional insurance front, property, and specifically business interruption coverage, may be a natural place to look. These policies are designed to cover first-party exposures — loss to business. Other coverage to consider for claims made by third parties against a company — by stockholders, consumers, the government or other entities — include commercial general liability (“CGL”), professional liability, director and officer liability, employment practices, and fiduciary liability policies. More recently, data privacy and security policies (sometimes called "cyber" policies) should be considered as well.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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