Florida’s legislature has recently passed House Bill 473 (HB 473), known as the Cybersecurity Incident Liability Act, which aims to provide immunity to businesses under certain conditions if they suffer a data breach. This legislative move is part of a broader national trend where states are creating incentives for companies to enhance their data security practices by offering protection from the high costs associated with data breach lawsuits. The bill, passed on March 5, awaits the decision of Governor Ron DeSantis.

Why it matters: HB 473 is designed to encourage businesses to adopt and maintain strong cybersecurity measures by offering them exemptions from lawsuits stemming from data breaches. It reflects a growing recognition of the need to balance the enforcement of data protection standards with the challenges businesses face in the digital age. This law could set a precedent for other states, potentially leading to a more unified approach to cybersecurity liability and incident response across the United States.

• Broad Scope of Immunity: Offering sweeping immunity to companies that comply with its provisions, HB 473 would potentially cover a wider array of claims than similar laws in other states. This includes exceptions from common law and statutory claims under Florida law, provided the companies meet specific conditions related to notice compliance and the adoption and updating of a cybersecurity program.

• Flexible Compliance Standards: The bill allows for “substantial” rather than perfect compliance with recognized cybersecurity frameworks or legal standards. This flexibility acknowledges the practical challenges businesses face in achieving and maintaining top-tier security measures and provides a more attainable path to legal immunity.

• Immediate Effectiveness and Prospective Application: Should Governor DeSantis sign the bill into law, it will take immediate effect, applying to any lawsuits filed after its enactment. This underscores the urgency and importance that the Florida legislature places on enhancing cybersecurity practices among businesses.

Go Deeper -> Florida bill introduces data breach immunity for entities meeting industry cybersecurity standards – iaap

Florida Legislature passes bill providing for data breach immunity – Day Pitney LLP