12/30/2020 Police Body Cams - Indemnification with Vendor

Accel,

I received a question about the agreement between a City and Taser/Axon and I am hoping you may be able to provide feedback.

The City is considering signing an agreement, and is concerned about the data housing portion of the agreement. They will be paying to store data in the cloud (vendors), and would like to be indemnified for the vendor’s services. Have any of you gone through this process? What indemnification were you able to obtain? What insurance limits and for what lines of coverage?

The concern is the data being housed on the cloud, a potential beach and release of video from the cloud, causing damage and a claim against the City. It seems like a very real concern to me, and I am wondering what limits/line of coverages/indemnification your entity was able to obtain.

Thank you in advance!

3 replies

City of Santa Barbara

12/30/2020 07:26:30 PM

Per Mark (SEE ATTACHMENT)

The issue of risk transfer with cloud based vendors has created havoc in the risk management field for several years. The vast majority of vendors do not agree to the use of the terms contained in the IRIC manual. Many vendors demand a limitation of liability within the indemnity or insurance sections. The common result is a limitation of damages to equal the value of the contract or $50,000. Santa Barbara begins with the IRIC terms and negotiates from there. In rare occasions, I’m able to negotiate directly with the vendor’s Risk Management staff on the terms. Santa Barbara uses the attached insurance requirements in contracts with cloud based vendors.

Hope this helps.

Download file: 2c761177-42bc-40b5-a712-e6dbf0e2e087.docx

City none@none.com

12/30/2020 07:25:22 PM

Per Dave - SEE ATTACHMENT

I include below language from our contract with Evidence.com, which is the Taser cloud service. Note that there is a limitation of liability and they were amenable to limiting their liability to the greater of $1M or the amount of insurance they maintain and collect. Remember that if they have a breach and release of video it is a professional liability claim. Taser has a shedload of money so I am not worried about them not being able to fund a liability. The Anaheim contracts were rushed due to wanting to be an early adopter.

Remember that the data in the cloud is the agency’s data not Taser’s so that the cyber coverage would be the agency’s coverage.

Download file: de38327e-354a-4c39-bd7b-9cfed3c428b6.pdf

Accel

12/30/2020 07:24:52 PM

I was just informed that we are too working on a contact with AXON.

Our City Attorney is currently reviewing.