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Absolutely agree with Donald. An indemnity is essential and standard. You could not justify doing business with anyone not willing to accept responsibility for their errors.
 
Indemnity insurance is something that should be considered on a case by case basis. It would be part of due diligence in procurement to ensure they are able to meet their contract obligations, and if in doubt insurance would be reasonable. Also depends on the nature of the risk.
 
Off the top of my head I doubt whether we have asked for such specifically on small scale processing contracts. On the other hand our contract with our technology partner requires professional indemnity errors and omissions cover of a minimum of £5 million.

Phillip Bradshaw


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From: The UK Records Management mailing list [mailto:[log in to unmask]] On Behalf Of Donald Henderson
Sent: 19 January 2011 09:45
To: [log in to unmask]
Subject:

Jim,
 
A clause indemnifying the data controller for a breach by the data processor (or their employees) is standard and essential - otherwise you have to fork out for their mistakes.
 
Donald Henderson
Information Compliance Manager
Perth and Kinross Council


From: The UK Records Management mailing list [mailto:[log in to unmask]] On Behalf Of McClen James (South of Tyne and Wear)
Sent: 19 January 2011 09:33
To: [log in to unmask]
Subject:

Hi

Is anyone – as a data controller - signed up to a data processing contract which includes a clause requiring the data processor to indemnify the data controller and to have indemnity insurance?  We are seeking sign up to a contract with our offsite storage providers but this seems to be a sticking point as they argue it would be a major cost increase to them and  consequently to us.  Any thoughts?  There are no issues of performance with the provider, they scored very well on a security questionnaire and have ISPO 27002 certification

 

Jim

 

Jim McClen

Records Manager

Information Governance

Informatics

 

NHS South of Tyne and Wear

Clarendon
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Hebburn

Tyne and Wear

NE31 1AT


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