As organizations of all stripes increasingly rely on cloud computing services to conduct their business, the need to balance the benefits and risks of cloud computing is more important than ever. This is especially true when it comes to data security and privacy risks. However, most Cloud customers find it very difficult to secure favorable contract terms when it comes to data security and privacy. While customers may enjoy some short term cost-benefits by going into the Cloud, they may be retaining more risk then they want (especially where Cloud providers refuse to accept that risk contractually). In short, the players in this industry are at an impasse. Cyber insurance may be a solution to help solve the problem.
California's infamous SB 1386 (California Civil Code sections 1798.29 and 1798.82) was the very first security breach notification law in the nation in 2002, and nearly every state followed suit. Many states added their own new twists and variations on the theme - new triggers for notification requirements, regulator notice requirements, and content requirements for the notices themselves. Over the years, the California Assembly and Senate have passed numerous bills aimed at amending California's breach notification law to add a regulator notice provision and to require the inclusion of certain content. However, Governor Schwarzenegger vetoed the bills on multiple occasions, at least three times. Earlier this year, State Sen. Joe Simitian (D-Palo Alto) introduced Senate Bill 24, again attempting to enact such changes. Yesterday, August 31, 2011, Governor Brown signed SB 24 into law.