--- title: How To Write Contracts That Help You Survive A Data Breach description: Here's part two in a series teaching you how to prevent and survive a data breach. We'll go over how to write contracts that set you up for success. image: https://blog.linksquares.com/hubfs/AdobeStock_270049183.jpeg --- [Skip to content](https://blog.linksquares.com/contracts-survive-data-breach#main-content) [LinkSquares](https://blog.linksquares.com/) Open Mobile Menu [LinkSquares](https://linksquares.com/) Close Mobile Menu [Why LinkSquares](https://linksquares.com/why-linksquares/) [Products](https://linksquares.com/products/) --- [The LinkSquares Cloud One platform for all your in-house legal needs](https://linksquares.com/products/linksquares-cloud/) --- Contract Lifecycle Management Create, review, manage and sign contracts Legal Project Management Centralize your work and keep projects moving Cross-product capabilities Get scalability, efficiency and connectivity LinkSquares Onboarding Experience A step by step guide to get started today --- [Solutions](https://linksquares.com/solutions/) [Customer Stories](https://linksquares.com/customers/) Resources Content [LinkSquares+ Content curated for in-house leaders](https://linksquares.com/plus/) [The Library](https://linksquares.com/library/) In the studio [Demo Library](https://linksquares.com/demo-library/) Community & Events [Customer Stories](https://linksquares.com/customers/) [Events & Webinars](https://linksquares.com/events/) Learning [Blog](https://blog.linksquares.com/) [In-House Insights](https://linksquares.com/inhouse-insights/) [Knowledge Base](https://help.linksquares.com/) [Events](https://linksquares.com/events/) [About Us](https://linksquares.com/about-us/) [Careers](https://linksquares.com/careers/) [Press](https://blog.linksquares.com/tag/linksquares-news-press) [Pricing](https://linksquares.com/pricing/) [Request a demo](https://linksquares.com/demo-request/) Back Close Mobile Menu [Contract Lifecycle Management](https://linksquares.com/products/) [Finalize Streamline your contract creation process](https://linksquares.com/products/finalize/) [Sign Get your contracts executed faster](https://linksquares.com/products/sign/) [Analyze Your post-signature analytics & repository](https://linksquares.com/products/analyze/) [CLM Suite One platform to rule them all](https://linksquares.com/products/) [Request a demo](https://linksquares.com/demo-request/) Back Close Mobile Menu [Legal Project Management](https://linksquares.com/products/) [Prioritize Manage, track, and report on legal work in one place](https://linksquares.com/products/prioritize/) [Request a demo](https://linksquares.com/demo-request/) Back Close Mobile Menu [Cross-product capabilities](https://linksquares.com/products/) [LinkAI Predictive and generative AI](https://linksquares.com/products/analyze/features/ai/) [Integrations Connect the tools you love](https://linksquares.com/integrations/) [Reporting Improve your teams efficiency with KPIs](https://linksquares.com/products/analyze/features/dashboard/) [API Integrate with any third-party app](https://linksquares.com/integrations/linksquares-api/) [Request a demo](https://linksquares.com/demo-request/) Back Close Mobile Menu [Cross-product capabilities](https://linksquares.com/products/) [Onboarding We're here for you from day one](https://linksquares.com/onboarding-services/) [Services Short on time? 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[Learn more](https://linksquares.com/agentic-ai/) Contract Lifecycle Management Create, review, manage and sign contracts Legal Project Management Centralize your work and keep projects moving Unified Capabilities Get scalability, efficiency and connectivity LinkSquares Onboarding Experience A step by step guide to get started quickly [Finalize Streamline your contract creation process](https://linksquares.com/products/finalize/) [Sign Get your contracts executed faster](https://linksquares.com/products/sign/) [Analyze Your post-signature analytics & repository](https://linksquares.com/products/analyze/) [CLM Suite One platform to rule them all](https://linksquares.com/products/) [Prioritize Manage, track, and report on legal work in one place](https://linksquares.com/products/prioritize/) [LinkAI Predictive and generative AI](https://linksquares.com/ai/) [Agentic AI Smarter contracting with a multi-agent approach](https://linksquares.com/agentic-ai/) [Integrations Connect the tools you love](https://linksquares.com/integrations/) [Reporting Improve your teams efficiency with KPIs](https://linksquares.com/products/analyze/features/dashboard/) [API Integrate with any third-party app](https://linksquares.com/integrations/linksquares-api/) [Onboarding We're here for you from day one](https://linksquares.com/onboarding-services/) [Services Short on time? 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This post is part two in a series teaching you how to prevent and survive a [data breach](https://linksquares.com/solutions/data-privacy-compliance/?__hstc=45788219.b68599272a6d28d8dc32d9bc605fc427.1650031623133.1650031623133.1650031623133.1&__hssc=45788219.1.1650031623133&__hsfp=1103527144). If you missed part 1 about listening to experts and being proactive, [check it out here](https://blog.linksquares.com/how-to-prevent-a-data-breach?__hstc=45788219.b68599272a6d28d8dc32d9bc605fc427.1650031623133.1650031623133.1650031623133.1&__hssc=45788219.1.1650031623133&__hsfp=1103527144). In this post, we’ll get into the third and final step in the process: how to write contracts that set you up for success. Let’s dive in.  **Step 3: Write Smarter Contracts** The possibility of a data breach is inevitable; all that is unknown is the timing, the scale, and your level of risk. You can mitigate that risk by writing contracts with data breaches in mind. Working with technology, you can efficiently update your legal agreements to address each of the following clauses in the context of possible future data breaches: **Governing Law**  National standards like the EU's [General Data Protection Regulation (GDPR)](https://linksquares.com/solutions/gdpr-compliance/?__hstc=45788219.b68599272a6d28d8dc32d9bc605fc427.1650031623133.1650031623133.1650031623133.1&__hssc=45788219.1.1650031623133&__hsfp=1103527144) may dictate the privacy expectations of your customers and partners, but you are still well-advised to stipulate the governing law for adjudicating any compensation for violating such a standard, as well as the jurisdiction that will rule on your contractual obligations in the event of a breach. Don't assume that national law covers all the bases here. Venue matters. **Data Access: During and Post-Severance** The "data conduct" of your partners and service providers can drive your own liability, so you need to explicitly spell out who has access to what during the term of your relationship and what materials must be returned, purged, or maintained once that relationship is severed. Clarity here benefits everyone. It prevents data from "lying around" after it is no longer of use, but is still at risk. **Reasonable Notification Periods In Event of Breach** Customers and partners will likely insist on some form of compensation in the event of a data breach if only to establish that your company has an incentive to protect their information. That said, clearly setting out compensation standards and maximums in advance can limit the direct and indirect costs of an eventual breach. Don't leave these numbers to chance or negotiation after the fact. [![New call-to-action](https://no-cache.hubspot.com/cta/default/6934676/6c829038-f0ba-496b-9e24-cdde3df33a02.png)](https://cta-redirect.hubspot.com/cta/redirect/6934676/6c829038-f0ba-496b-9e24-cdde3df33a02) **Limit Grounds for Termination or Compensation** As we’ve said, data breaches are somewhat inevitable. So, the mere fact of a breach should not be reasonable grounds for offering (or even receiving) compensation from or the termination of a legal agreement. Establish a minimum scope or type of breach -- for example, the disclosure of uniquely identifying information such as credit card or social security numbers -- as grounds for liability. Hackers simply breaching your firewall and crashing your marketing website should not invoke payouts to all your customers. **Handling a Data Breach Requires the Full C-Suite (and the Right Software)** Most of the work to handle a data breach should occur before the breach happens, and much of the work done should be handled by the entire C-suite, not just the CIO. It involves the right people following the right procedures using the right software -- including Contract Lifecycle Management software [(CLM)](https://blog.linksquares.com/what-is-clm). While security software can prevent and track the technical scope of a data breach, [CLM](https://linksquares.com/products/) can assess and minimize the contractual scope of a cyberattack. The proactive priority lists you should provide to your IT, customer service, and finance teams are easier to generate and update if you have a CLM solution that can identify the relevant legal agreements and their applicable clauses in real-time. The updated contracts you need to minimize your liability if the face of future breaches are easier to create, update, and execute if you have a CLM solution that can show you where your current contracts are deficient, and track which agreements should be revisited. If you're ready to get proactive about handling data breaches -- and include contractual impact in your cyber security regime -- [contact LinkSquares today](https://go.linksquares.com/demo-request?__hstc=45788219.b68599272a6d28d8dc32d9bc605fc427.1650031623133.1650031623133.1650031623133.1&__hssc=45788219.1.1650031623133&__hsfp=1103527144). ![avatar](https://blog.linksquares.com/hs-fs/hubfs/alyssa%20.jpeg?width=290&name=alyssa%20.jpeg) #### [Alyssa Verzino](https://blog.linksquares.com/author/alyssa-verzino) Alyssa Verzino is a Senior Content Marketing Manager at LinkSquares. ## Subscribe to the LinkSquares Blog Stay up to date on best practices for GCs and legal teams, current events, legal tech, and more. ## Related Articles ### [Alyssa Verzino Apr 08, 2022 5 min read How to Prevent and Survive A Data Breach Data breaches require a team response. Many organizations consider themselves prepared for a data breach if their Chief ... Start Reading](https://blog.linksquares.com/how-to-prevent-a-data-breach) ### [Alyssa Verzino Oct 24, 2022 7 min read More LinkSquares Smart Values for Cybersecurity Welcome back! Here’s the final post in the three-part blog series, outlining how you can use LinkSquares to improve your ... Start Reading](https://blog.linksquares.com/-linksquares-smart-values-cybersecurity) ### [Alyssa Verzino Oct 11, 2022 6 min read 4 Security Stipulations to Demand October is cybersecurity awareness month – and we’re here to lend a helping hand. In this three-part blog series, we’ll outline ... 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We'll go over how to write contracts that set you up for success.", "author" : { "@type" : "Person", "name" : "Alyssa Verzino" }, "dateModified" : "2022-04-15T14:10:12Z", "datePublished" : "2022-04-15T14:10:12Z", "headline" : "How To Write Contracts That Help You Survive A Data Breach", "image" : "https://6934676.fs1.hubspotusercontent-na1.net/hubfs/6934676/AdobeStock_270049183.jpeg", "inLanguage" : "en", "keywords" : "[Security & Data Privacy]", "mainEntityOfPage" : { "@type" : "WebPage" }, "name" : "How To Write Contracts That Help You Survive A Data Breach", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://6934676.fs1.hubspotusercontent-na1.net/hubfs/6934676/Navigation/logo_643dd1b1.svg" }, "name" : "LinkSquares" }, "text" : "Welcome back! This post is part two in a series teaching you how to prevent and survive a data breach. If you missed part 1 about listening to experts and being proactive, check it out here. In this post, we’ll get into the third and final step in the process: how to write contracts that set you up for success. Let’s dive in. Step 3: Write Smarter Contracts The possibility of a data breach is inevitable; all that is unknown is the timing, the scale, and your level of risk. You can mitigate that risk by writing contracts with data breaches in mind. Working with technology, you can efficiently update your legal agreements to address each of the following clauses in the context of possible future data breaches: Governing Law National standards like the EU's General Data Protection Regulation (GDPR) may dictate the privacy expectations of your customers and partners, but you are still well-advised to stipulate the governing law for adjudicating any compensation for violating such a standard, as well as the jurisdiction that will rule on your contractual obligations in the event of a breach. Don't assume that national law covers all the bases here. Venue matters. Data Access: During and Post-Severance The \"data conduct\" of your partners and service providers can drive your own liability, so you need to explicitly spell out who has access to what during the term of your relationship and what materials must be returned, purged, or maintained once that relationship is severed. Clarity here benefits everyone. It prevents data from \"lying around\" after it is no longer of use, but is still at risk. Reasonable Notification Periods In Event of Breach Customers and partners will likely insist on some form of compensation in the event of a data breach if only to establish that your company has an incentive to protect their information. That said, clearly setting out compensation standards and maximums in advance can limit the direct and indirect costs of an eventual breach. Don't leave these numbers to chance or negotiation after the fact. Limit Grounds for Termination or Compensation As we’ve said, data breaches are somewhat inevitable. So, the mere fact of a breach should not be reasonable grounds for offering (or even receiving) compensation from or the termination of a legal agreement. Establish a minimum scope or type of breach -- for example, the disclosure of uniquely identifying information such as credit card or social security numbers -- as grounds for liability. Hackers simply breaching your firewall and crashing your marketing website should not invoke payouts to all your customers. Handling a Data Breach Requires the Full C-Suite (and the Right Software) Most of the work to handle a data breach should occur before the breach happens, and much of the work done should be handled by the entire C-suite, not just the CIO. It involves the right people following the right procedures using the right software -- including Contract Lifecycle Management software (CLM). While security software can prevent and track the technical scope of a data breach, CLM can assess and minimize the contractual scope of a cyberattack. The proactive priority lists you should provide to your IT, customer service, and finance teams are easier to generate and update if you have a CLM solution that can identify the relevant legal agreements and their applicable clauses in real-time. The updated contracts you need to minimize your liability if the face of future breaches are easier to create, update, and execute if you have a CLM solution that can show you where your current contracts are deficient, and track which agreements should be revisited. If you're ready to get proactive about handling data breaches -- and include contractual impact in your cyber security regime -- contact LinkSquares today.", "url" : "https://blog.linksquares.com/contracts-survive-data-breach", "wordCount" : "852" } ```