Smart homes have changed our living spaces, but they’ve also brought new challenges for contractors. Recent research shows that smart home devices can create serious safety and privacy risks, exposing information such as unique device names, personal data and even the exact location of the house.
New responsibilities, new liabilities
Digital safety measures have become a key part of what makes “reasonable security measures” in modern construction. Contractors must now consider the digital infrastructure of the homes they build, which includes:
- Making sure systems work safely together
- Using strong data encryption methods
- Planning for regular software updates to maintain security
However, this new role comes with potential liabilities. Contractors could face negligence or breach of contract claims if they do not provide adequate security measures or misrepresent the abilities of their smart home systems.
Prevention is key
The right contract can help reduce many of these liabilities from the start. To protect yourself and your clients, consider these steps in your contract negotiations:
- Define which parts of smart home security are your responsibility and which are the responsibility of device manufacturers or homeowners.
- Set realistic expectations about the capabilities and limitations of the smart home systems you’re installing.
- Include clauses that can protect you from third-party claims related to smart home security breaches.
- Specify any requirements for regular updates or security checks and clarify who manages these.
- Outline how the company will gather, use or protect any data collected by the smart home system.
Each project is different, and contracts should be made to fit. It is crucial to work with attorneys who understand both construction law and the new field of smart home technology.
Smart homes need smart contracts
Don’t leave your business exposed to unnecessary risk. Seek legal counsel when preparing and negotiating your smart home construction contracts.