Results 1 to 19 of 19

Thread: liability

  1. #1
    Join Date
    Mar 2004
    Posts
    407

    liability

    Is liability a big issue in web hosting? Can or do people sue if you lose their data? Any liability stories?

    TIA
    Alvin

  2. #2
    Join Date
    Jun 2001
    Location
    Denver, CO
    Posts
    3,301
    We live in a litigious society. People can sue you over anything, quite litterally. However, in several years of business we have never been sued. Even so, liability insurance is always a good idea ...
    Jay Sudowski // Handy Networks LLC // Co-Founder & CTO
    AS30475 - Level(3), HE, Telia, XO and Cogent. Noction optimized network.
    Offering Dedicated Server and Colocation Hosting from our SSAE 16 SOC 2, Type 2 Certified Data Center.
    Current specials here. Check them out.

  3. #3
    Join Date
    Mar 2004
    Location
    Pennsylvania, U.S.A.
    Posts
    1,579
    Jay, you said it.

  4. #4
    Join Date
    Mar 2004
    Posts
    407
    The big reason i was asking is I am looking at LLC versus Partnership. Would it be safe to do partnership and get liability insurance?

    Now I need to go research liability insurances costs.

  5. #5
    Join Date
    Mar 2003
    Location
    Canada
    Posts
    8,910
    Originally posted by alvinks
    The big reason i was asking is I am looking at LLC versus Partnership. Would it be safe to do partnership and get liability insurance?

    Now I need to go research liability insurances costs.
    I'd suggest talking to a lawyer, as the laws may be different from state to state.

  6. #6
    Join Date
    Feb 2004
    Location
    Southern California
    Posts
    749

  7. #7
    Join Date
    Mar 2004
    Posts
    407
    say you live in California, your managed dedicated server is in Texax, and the person with the issue lives in New York. From my understanding I go by the New York laws since the person purchased it there. (kinda).

    So i get a lawyer that knows the internet laws for every state....

  8. #8
    Join Date
    Jan 2003
    Location
    Chicago, IL
    Posts
    6,889
    But the LLC protection, costs, and procedures are determined by the state you get the LLC in, which is what I think he meant...
    Karl Zimmerman - Steadfast: Managed Dedicated Servers and Premium Colocation
    karl @ steadfast.net - Sales/Support: 312-602-2689
    Cloud Hosting, Managed Dedicated Servers, Chicago Colocation, and New Jersey Colocation
    Now Open in New Jersey! - Contact us for New Jersey colocation or dedicated servers

  9. #9
    Greetings:

    In my opinion, every Web hosting business should consult with their attorney, accountant, and insurance agent.

    You should have the proper legal business structure, have a good accounting system in place, and have the proper insurance.

    Your laywer can help you by reviewing terms of service along with acceptable use practice statements and contracts to help minimize any liability.

    Thank you.
    ---
    Peter M. Abraham
    LinkedIn Profile

  10. #10

    Wow, that was scary good...

    Originally posted by dynamicnet
    Greetings:

    In my opinion, every Web hosting business should consult with their attorney, accountant, and insurance agent.

    You should have the proper legal business structure, have a good accounting system in place, and have the proper insurance.

    Your laywer can help you by reviewing terms of service along with acceptable use practice statements and contracts to help minimize any liability.

    Thank you.
    "Beer is proof that God loves us and wants us to be happy" -- Ben Franklin
    Twice Tied Laces

  11. #11
    Join Date
    Mar 2004
    Posts
    407
    Well, has anyone here been sued for losing someones data? Does anyone know if we are required to backup the data we host?

  12. #12
    Join Date
    Feb 2004
    Location
    USA
    Posts
    347
    you aren't required to do anything.

    You offer a service with specific restrictions (your aup and tos) which should say you cannot be held liable for losing your customer's data - just your customers
    the end of the world is upon us...absolute power corrupting absolutely...free speech is never free...

    ...mod friendly signature compliant

  13. #13
    Join Date
    May 2002
    Location
    Sweden
    Posts
    526
    You have to have a very clear terms of service. I know it does not stop people from suing you, but it is actually a really good step towards a full nights sleep ;-) and your lawyer will recommend it for sure.
    I like to help

  14. #14
    Join Date
    Feb 2004
    Location
    Australia (Crikey)
    Posts
    2,271
    a good TOS and AUP will protect you to some extent.....talk to a lawyer, they will know best

  15. #15
    Join Date
    Feb 2004
    Location
    USA
    Posts
    347
    oh - and nothing will fully protect you. People can sue you for whatever they like if they have a valid claim. Your tos will just discourage them (and most) in the beginning.
    the end of the world is upon us...absolute power corrupting absolutely...free speech is never free...

    ...mod friendly signature compliant

  16. #16
    Greetings:

    Please note that in the U.S. people can sue easily, and at the drop of a hat.

    Futhermore, do not think for a moment the court system will stop legal action based on intelligence.

    A few years ago, my wife and I made the mistake of personally loaning money to an employee.

    The employee bounced a check on July 23rd. They then filed for bankruptcy in early September of the same year.

    Through consulting with our attorney we held their last paycheck in August of that year because of a company loan (yes, two loans -- personal and company) that was in default.

    The former employee sued claiming the check bounced in July due to payroll wages held the last week of August.

    Most people who can look at a calendar knows that August is after July; and they would separate actions taken by a legal corporation and individuals. Forget it.

    Granted they lost that motion; but it did take up valuable time and legal fees.

    Lastly, even if you have a tos, aup, and contract, if the wording is such that some one could argue you are responsible, then you are in danger.

    So, please have a lawyer review your terms of service, AUP, and contract (your client's do sign or esign a contract, correct?).

    Thank you.
    ---
    Peter M. Abraham
    LinkedIn Profile

  17. #17
    Join Date
    Mar 2004
    Posts
    407
    Thanks for all the info/advice. However, not sure what an AUP is. (I am new to all this).

  18. #18
    Join Date
    Feb 2004
    Location
    USA
    Posts
    347
    acceptable use policy
    the end of the world is upon us...absolute power corrupting absolutely...free speech is never free...

    ...mod friendly signature compliant

  19. #19
    Join Date
    Oct 2002
    Location
    New York
    Posts
    1,063
    You can also mend your TOS around the fact that your not liable for customer data, and all customers should keep up to date backups incase "acts of god"...

    shorthand: **** happens.
    The Hostworks:: Offering Managed and Unmanaged VPS
    Shared Web Hosting and Managed E-Mail security services.
    24/7 Support :: 10 year anniversary coming soon!

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •