Tech/Data Center Law
Avoiding Potential Liabilities
Reducing Vulnerability to Liability by Integrating Contract Language That Mitigates Risk
Data center operators face multiple vulnerabilities that can create incidents that result in potential liability. The risks include:
Accidents that might damage the facility
Possible downtime events impacting the data center’s or its customers’ business continuity
The potential for workplace injuries
Environmental liability issues
Organizations today are increasingly dependent on IT infrastructure availability on a 24 x 7 x 365 basis to ensure that services to their customers/end-users are available whenever needed. To provide and maintain this availability is no longer just a matter of designing and building the right facility infrastructure; the facility must also be carefully managed and operated on a day-to-day basis to safeguard the business-critical infrastructure.
Data center operators have also turn to standardized assessments and certifications as another means of mitigating liability risks (i.e., ISO/IEC 27001, NIST 800-53, PCI, etc.). Such assessments help ensure that clearly-defined, repeatable procedures and processes are in place and demonstrate that the facility adheres to a generally accepted standards of care.
However, managing the risks of liability begins with the licensing/leasing contract itself. A clear scope of work and allocation of risk between the contracting parties is essential. Clauses, such as service level agreements, limitation of liability, force majeure, wavier of subrogation and indemnification wording, are intended to reinforce the intended allocation of risk. Complex multiparty contract disputes can also be common, particularly when significant losses are incurred.
Our team will work closely with your management team to ensure that these considerations are effectively addressed. With that, our clients are able to breathe easier knowing that the perils of legal liability are being reduced as part of an overall risk mitigation plan for the mission-critical facility.