Data breach liability has become an increasingly important issue in cloud service agreement negotiations, as companies of all sizes continue to move significant amounts of their data to centralized, cloud solutions and away from on-premises solutions. Fund managers are not immune from this risk, as many fund managers have moved at least some of their technological infrastructure – e.g., data storage, trade execution, accounting systems, client-relationship-management systems and disaster recovery systems – to the cloud, thereby exposing themselves to the risks of data breaches at the cloud service provider. In this guest article, Shook Hardy & Bacon attorneys Amy Ragen and Josh Hansen discuss bases for breach liability in cloud-service relationships, along with key provisions and negotiation strategies cloud service providers and their customers use to limit that liability. See “Key Considerations for Fund Managers When Selecting and Negotiating With a Cloud Service Provider” (Sep. 21, 2017).