Your Liability Tied to Vendors’ Data Security

The growing threat of identity theft and the high costs associated with a data breach are making contractors increasingly aware of the importance of robust network security and data breach controls, but many contractors do not realize that their vendors’ data security protocols are equally important.

In the event of a data breach, customers may hold your organization accountable, even if one of your vendors was actually responsible for the breach.

Ensure that your vendors follow industry standards and best practices for data security. In addition to carrying data breach insurance, vendors should have a written data security policy in place that includes an incident response plan.