Internet-related liabilities are present whether your company simply has e-mail or is actively involved in e-commerce. Do you have the appropriate coverage?
Who Needs a Plan? --- Almost EVERYONE!
Assumptions have been made that a traditional comprehensive Commercial General Liability (CGL) policy will afford you coverage for business interruption, intellectual property damage and similar losses. And because “property damage,” covered under CGL policies, has been traditionally defined as a physical injury to tangible property, some courts have even ruled that “physical loss or damage” includes computer-information related losses. Insurers are avoiding liability by including specific exclusions and requiring endorsements for this coverage.
However, insurance carriers are now becoming savvy in the technology industry. Product offerings are greater. We are seeing a plethora of cyber insurance products. Knowing the ins and outs of each product will be key in proper policy selection. That’s where [B_Officialname] can assist you, providing its expertise so you have the appropriate coverage to match your risk management needs.
Cyber liability coverage may include an e-comprehensive policy. This policy may cover losses caused by fraudulent modification, accidental alteration or destruction to all electronically stored information. In addition, losses caused by malicious copying of trade secrets, extortion and introduction of a virus could be covered.
Media liability addresses the losses associated with libel, slander, and invasion of privacy and infringement of copyrights.
This may be needed, especially if your employees are given access to e-mail capabilities and Internet access. E-mail is an essential tool of today’s fast-paced business culture. However, messages taken out of context may cause difficulty. Establish an e-mail usage policy and educate employees on the proper use of e-mails and surfing the Net.
Defend against loss or damage caused by viruses with specialty computer virus transmission coverage. Along these lines, there is unauthorized access and use coverage, which insures against losses when third party information is stolen.
Each carrier’s Internet-related insurance products need to be closely scrutinized to determine what they will and will not cover, and who will pay the defense expenses.
Your company may also be entitled to rehabilitation expenses to re-establish your reputation and market share after a loss.
One other detail that we look at is whether the policy itself is a claims made or an occurrence policy. Claims made policies will only cover losses that are made and reported during that policy period. If this is the case, an extended reporting period (ERP) may need to be negotiated.
E-commerce presents today’s risk managers with new challenges—this brochure only scratches the surface. To ensure the success of your e-commerce initiatives, GDI Insurance Agency, Inc. recommends a comprehensive risk assessment be conducted to identify potential gaps and inappropriate levels of coverage.
Contact GDI Insurance to further discuss your e-liability and the products available to minimize your risk.
Matthew Davis MBA, AAI