ABSTRACT
Companies are generally unwilling to commit the finances and resources to implement a plan unless they are forced to do so. Companies covered under this act are subject to all the liabilities and all the resulting damages approximately caused by the failure to make an electronic funds transfer. Courts determine liability by weighing the probability of the loss occurring compared to the magnitude of harm, balanced against the cost of protection. This baseline compels companies to implement a reasonable approach to disaster recovery in which the cost of implementation is in direct correlation to the expected loss. Directors and officers of companies have a fiduciary responsibility to ensure that any and all reasonable efforts are made to protect their companies. Errors and omissions insurance covers consequential damages that result from errors, omissions, or negligent acts committed in the course of business, or from all of these together.
