Cloud Computing David Gallagher Senior Underwriter, IT Liability 25 th October 2011.

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Presentation transcript:

Cloud Computing David Gallagher Senior Underwriter, IT Liability 25 th October 2011

Introduction Cloud Computing_Liberty International Underwriters2 What is Cloud Computing? Benefits & risks Loss scenarios Insurance policy response

Cloud Computing What is it? Cloud Computing_Liberty International Underwriters3 Software as a Service (SaaS) Infrastructure as a Service (IaaS) Platform as a Service (PaaS)

Benefits of Cloud Computing Elastic & scalable Capital expenditure Housed remotely – no need to make space in your office Access to services when disaster strikes (eg. Queensland Floods) Cloud Computing_Liberty International Underwriters4

The Risks Associated with Cloud Computing Cloud Computing_Liberty International Underwriters Privacy and Confidentiality Sabotage by Malicious Insiders Termination Access and Service Data Sovereignty Legal Privilege 5

Loss Scenarios Cloud Computing_Liberty International Underwriters6 Breach of privacy / confidentiality Loss or damage to data Interruption to service or denial of access

Policy Response Ensure the E&O insurance policy FITS the risk Work with an insurer who understands the technology and the associated risks Risk management dictates that appropriate insurance is VITAL Cloud Computing_Liberty International Underwriters7

Summary Benefits Risks Increasing Demand Associated Risks Risk Mitigation Cloud Computing_Liberty International Underwriters8

Computing_Liberty International Underwriters9 Presented by Liberty International Underwriters (a trading name of Liberty Mutual Insurance Company ABN Incorporated in Massachusetts, U.S.A. The liability of members is limited). The presentation is intended to illustrate broadly some, but not all, of the kinds of exposures a business can face from Cloud Computing. It is not a comment upon insurance coverage available from LIU. It should not be relied upon as advice or any definitive statement of law or the principles of insurance in any jurisdiction. This information is accurate as at 25 October 2011.