What should you include in vendor contracts for data destruction and disposal?

1 Data Destruction Methods

You should specify the methods and standards that your vendors must use to destroy your data. For example, you may require them to use physical destruction, such as shredding, crushing, or incinerating, or software-based destruction, such as wiping, degaussing, or encrypting. You should also refer to the industry best practices and regulations that apply to your data, such as NIST, HIPAA, or PCI-DSS. By defining the data destruction methods, you can ensure that your vendors use consistent and secure techniques that meet your expectations and compliance requirements.

2 Data Disposal Procedures

You should also outline the procedures that your vendors must follow to dispose of your data and the devices that store it. For example, you may require them to separate your data from other clients' data, use secure containers or vehicles, and transport your data to a certified facility. You should also ask them to provide you with documentation and verification of the data disposal process, such as certificates of destruction, serial numbers, or photos. By setting the data disposal procedures, you can track and audit your vendors' performance and accountability.

3 Data Breach Notification

You should include a clause that requires your vendors to notify you in case of a data breach or a potential data breach. You should specify the time frame, the format, and the content of the notification. For example, you may require them to notify you within 24 hours, via email and phone, and provide you with the details of the incident, the impact, the remediation actions, and the contact person. By having a data breach notification clause, you can prepare and respond to any data security incidents quickly and effectively.

4 Data Retention and Return

You should define the terms and conditions of the data retention and return by your vendors. You should state how long your vendors can keep your data, how they must store it securely, and when and how they must return it to you or destroy it. For example, you may require them to keep your data for no longer than 30 days, use encryption and password protection, and return or destroy your data upon request or termination of the contract. By clarifying the data retention and return rules, you can control and limit your vendors' access and use of your data.

5 Data Ownership and Confidentiality

You should affirm your ownership and confidentiality of your data in your vendor contracts. You should state that your data is your sole property and that your vendors have no rights or interests in it. You should also state that your data is confidential and that your vendors must not disclose, copy, or use it for any unauthorized purposes. You should also require your vendors to comply with all applicable laws and regulations regarding data protection and privacy. By asserting your data ownership and confidentiality, you can safeguard your data rights and interests.

6 Data Destruction and Disposal Audit

You should reserve the right to audit your vendors' data destruction and disposal practices. You should state the frequency, the scope, and the method of the audit. For example, you may conduct the audit annually, randomly, or upon suspicion, cover the data destruction and disposal records and processes, and use your own staff or a third-party auditor. You should also state the consequences of failing the audit, such as penalties, termination, or legal action. By having a data destruction and disposal audit clause, you can monitor and enforce your vendors' compliance and quality.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?