Width or perimeter refers to the types of damage for which you may be responsible. Generally speaking, you should only assume certain types of responsibility. Unlimited liability means that in addition to possible compensation in the event of a breach, your customers can also sue you for loss of business, loss of reputation and other consequential damages. It is customary to exclude these types of liability. The Health Insurance Portability and Accountability Act of 1996 (“HIPC”) requires classified companies to enter into contracts with their counterparties to ensure that counterparties adequately protect protected health information (“PHI”). Counterparties that mandate contractors to perform certain IHP-related functions must also enter into subcontracting agreements with their subcontractors. This article provides an overview of the rules applicable to counterparty agreements.