Re: [fw-wiz] Managed Firewall Service - Opinions

From: Mike Scher (mscher@neohapsis.com)
Date: 04/18/03

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    From: Mike Scher <mscher@neohapsis.com>
To: firewall-wizards@honor.icsalabs.com
Date: Fri, 18 Apr 2003 09:52:58 -0500 (CDT)

    On Thu, 17 Apr 2003, Duncan Sharp wrote:

     [re: managed service providers that extend their error/negligence
          protection to their clients]

    > I can think of at least two service areas:
    >
    > 1: Rent-a-guards, where either the guards are bonded or
    > the guard service is insured.
    >
    > 2: Offsite tape {data,document} storage providers. Where the employees
    > are bonded. Hopefully the company offers insurance as an option.

    Actually, many offsite tape storage providers explicitly limit their
    liability to the physical value of the tapes. Not the data content -- the
    physical replacement value. The bonding perhaps protects against the
    employee's intentional malfeasance -- I'm not sure.

    That said, I completely agree that a provider of any managed service
    should be able to form a relationship with an insurance company (which in
    turn uses reinsurance to control risks, etc.. . .) and extend that
    protection to the client. In addition, one should expect a liability cap
    related to the annual cost of the service. Pricing may be higher at
    providers that do offer such coverage; higher than from organizations that
    contractually exempt themselves from liability.

    That brings us back to the cost/benefit discussion. If one considers
    coverage for the provider's negligence essential, one should examine the
    cost of providing the management internally AND the cost of INSURING
    against harm from one's own staff's error.

          -M 

    -- 
Michael Brian Scher     |     Director, Neohapsis Labs
mscher@neohapsis.com    |     General Counsel
Fax: 773-394-8314       |     Vox: 773-394-8310
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