November 2013
| Business World Magazine | 15
ers effectively communicate and protect
themselves if-and-when hacks occur.
“A small business’s website is at least
as important as its storefront, often re-
gardless of the product or service the busi-
ness is selling,” says TechInsurance CEO
Ted Devine. “Because IT professionals
tend to be far more tech-savvy than their
clients, they are frequently the first, last,
and only line of defense against attacks
that can sideline a business for weeks.”
Unfortunately, Devine notes, that role can
translate to liability if and when an attack
occurs. “Though the hacker is directly li-
able, the network admin, webmaster, or
developer can be held responsible for lost
sales and costs because they failed to pre-
vent an attack.”
To reduce that liability and prevent
Errors & Omissions lawsuits, TechInsur-
ance recommends that IT professionals
take the following precautions:
1. Educate clients about site security
.
Including basic instructions for how cli-
ents can keep their site secure with strong
passwords, antivirus software, security
patches, Google’s webmaster tools, and
caution with third-party content provid-
ers can greatly reduce the likelihood of a
hacking incident. Clients without a tech-
nical background are often intimidated by
online security or unaware that they can
play an active role in protecting their sites.
2. Update contract language to reduce
liability.
For those involved in building,
hosting, or granting permissions to client
websites, contracts should explicitly out-
line how liability for hacks will be han-
dled. While contracts can be overturned
in court, strong language can improve the
odds that a defendant won’t be found li-
able for E&O damages.
3.Offer security monitoring.
IT profes-
sionals who do not already offer securi-
ty-monitoring services should consider
adding them. Doing so can provide an
additional source of revenue, boost cli-
ent confidence, and prevent the big head-
aches of addressing hacking incidents af-
ter they’ve caused significant damage to
a site.
IT contractors that are unsure which
liabilities their contracts expose them to
can make use of TechInsurance’s Con-
tract Decoder found at
ance.com.
