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US security firms seek to limit liability

by Chris Lee in Melbourne

11 Jul 2002

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Security technology companies in the US have asked the government to pick up the tab if their devices fail and they find themselves on the receiving end of a lawsuit.

Makers of bomb-detecting technology and other security devices are hoping that Republican Senator Tom Davis, who heads an influential subcommittee on technology and federal contracting, will push their case in the Homeland Security Bill currently under discussion in Washington.

The security companies argue that the government should foot the bill in situations where they find themselves sued and the liability exceeds their insurance cover.

Harris Miller, president of the Information Technology Association of America, agreed with the companies' calls, saying that a "back-up mechanism from the government" is needed to reduce company risk.

Do you agree?

 

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