As data privacy regulations proliferate and more data breaches are announced, companies are placing more pressure on their vendors to secure their data. In turn, more companies are including cybersecurity language in contracts and auditing their vendors—but when a service provider fails to meet those standards, they usually don’t immediately pull the plug on the relationship.
If a client isn’t based in heavily regulated industries such as finance or health care, or a data breach incident didn’t occur, lawyers say companies will give their service providers leeway to quickly correct their security shortcomings. Langley & Banack shareholder and cybersecurity and data privacy attorney Natalie Friend Wilson explained most vendors and clients agree to include cure provisions that allows a vendor to address a client’s cybersecurity concerns within 30 to 90 days.
