Internet Coverage
In addition to coverage of electronic data processing (EDP) risks, today’s business must consider insuring the risks of doing business on the Internet. Some issues that may require coverage include:
- Copyright issues
- Trademark violations related to a domain name
- Deceptive use of meta-tags
- Privacy issues related to information garnered from visitors
- Loss of functionality due to hacker attacks
- Loss of sensitive data to hacker attacks
- Loss of functionality due to viruses
A traditional commercial insurance policy does not address these risks. These coverages are, however, necessary. Take even the very simple example of liability created through a banner ad that appears on your website. Just because the company that placed the banner is primarily liable, doesn’t mean you won’t be sued. Are you covered? If you don’t have a policy written for a publisher, you probably aren’t.
It is imperative that companies develop and document sound operating policies and procedures with respect to the Internet. An underwriter’s judgment is a critical element in the process, and demonstration that management is addressing the risk will go a long way toward managing the cost of premiums.
