network security
Definition
Network security refers to the technical and legal measures a business takes to protect its computer systems, data, and communications from unauthorized access, theft, or damage. Courts and regulators now treat network security as a legal obligation, not just a technical choice, meaning businesses can face lawsuits or fines if they fail to protect customer data with reasonable safeguards.
Example
If your business stores customer credit card information and a hacker breaks in because you never updated your software or used weak passwords, you could be held legally liable for the damages your customers suffer.
Watch Out
Many contracts, especially with larger companies or payment processors, require you to meet specific network security standards, and failing to meet them can void your contract or expose you to significant financial penalties.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.