Information privacy and security are hot topics these days and for good reason. Failing to protect customer data can lead to liability and harm your business reputation. Therefore, understand, both from a legal and technological perspective, how to develop sound privacy and security policies that protect sensitive customer information.
Businesses that deal with certain kinds of sensitive data such as health records and financial information have specific legal obligations. For instance, HIPAA regulates the privacy and security of medical information, and the Graham-Leach-Bliley Act stipulates how financial institutions must protect customer data.
Finally, all companies must ensure that their privacy policies are followed by employees and third party vendors that manage or store data.
Regarding data security, every business must implement reasonable security measures to protect its customers’ data and make sure that any third party that handles customer data does the same. As evidenced by the recent election and the legal woes of corporate giants Target, Sony and Citibank, failing to do so can cause substantial embarrassment, costly legal fees, and liability.
Should your company fall victim to a security breach, you also have certain obligations. For instance, most states have laws that require customers and certain government agencies be notified if customer information is compromised.
How We Can Help
If you want to safeguard your business from liability for a customer data breach, it is imperative to consult with an experienced business attorney. Our firm can help you achieve your business goals, while also minimizing your liability.