Knowledgebase: The Business
Liability, Security, and Contract issues

There isn't as much liability for a Remote Backup Service Provider as you might think. We are in contact with most of the RBS providers around the world, and not one of them has ever been sued over RBS-related issues to date, in the history of the company.

Clients used to be nervous about sending their data to a remote computer over the Internet, but this is not common these days. RBackup handles this problem by encrypting the data.

Before leaving the client's computer, the backup data are encrypted, sometimes using several different techniques, with a password that only the client knows. This makes the data unreadable to anyone who doesn't know the passwords - including the RBS provider.

This technique is quite secure, and makes certain that no one but the client can use his data.


This is a problem that is best handled contractually. The Partner's Portal contains downloadable samples of service contracts that you can modify for your own use. Your service contract should limit your liability to what the client has paid for your service.

You should agree only to make your service available for the client to use for backing up his computers, take reasonable steps to maintain your service, and take reasonable steps to prevent any possible loss of data. Most of these "reasonable steps" are handled automatically by the RBS software.

Think of your Remote Backup Service as a communications service like the telephone company. Can you imagine suing the phone company because a line went down and you lost some data? How about suing the power company because the lights went out and you lost a freezer full of food? 

The sample contracts are real contracts that have been used successfully by Remote Backup Services all over North America. They address all of these issues. You can customize them and have them approved by an attorney.

There are insurance companies that provide affordable insurance to help protect you. Search online for them.


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