Media : Cyberliability
Websites
| Networks
| Data
| Intellectual Property
Online Liabilities
| Third Party Risks
Don't get caught exposing yourself in cyberspace!
Technology is changing your risk exposures. As well as needing to protect your own website, network, electronically-held data, intellectual property (eg: artwork files), you may be liable for your/employees' infringement of intellectual property or copyright material from the internet, information transmitted from your site, libellous email, inadvertent virus transmission, breach of Data Protection Act... and the law is changing constantly, globally.
As well as needing to cover your own internet-related assets, you will need to look at protecting yourself financially if a third party brings a claim against you arising from your use of the internet, electronic mail, intranet, extranet or your website.
Read on for more detail on Cyberliability Insurance, or email us for information.
First party risks
Primary cyberliability issues relate to first-party risks to websites and their technology:
- Damage to your own website
- Damage to your computer network or any data you hold electronically arising from unauthorized access
- Loss of information and intellectual property (eg: artwork files), and the risk of loss when money transactions are done via a web-site.
- Reliance on a third party's fraudulent use of any electronic signature, certificate or mail or website
- All internet-dependent facilities need to be protected against viruses and insured against the protection failing. And of course, the material world can interfere with the virtual, bringing down systems with power cuts, fire, floods...
Third party risks
Problems that can affect third parties as much as the direct victim:
- Infringement of intellectual property rights
- Breach of the Data Protection Act, and misuse of any information which is either confidential or subject to statutory restrictions on its use
- Breach of confidence or of any right to privacy: where information is given via a website (the site owner is probably liable for transmitting the information or for protecting it adequately).
- Infringement of intellectual property or copyright material: when employees use material from the Net.
- Defamation: just as a third party can be libeled in print, so libel and defamation of character can occur with material carried on a website or in emails.
- Inadvertent transmission of a virus: you may be liable for viruses transmitted via your site, even if you did not initiate or distribute them.
- It is also possible for employees to inadvertently commit the company to some contractual arrangement over the internet by failing to read small-print terms and conditions.
- Fraudulent use by an employee of your electronic signature or external email offensive and obscene material can be transmitted over the Web, and if it comes from an identifiable website, the site operator will be liable for the actions of any employees who have introduced such material, or for failing to take adequate steps to prevent the situation.
Managing the risk
A key part of risk management in such areas is staff training: awareness of vulnerability to hackers and the implications of their internet surfing. Companies should also implement written protocols on the use of internet, extranet, email and contracting online, level of virus protection, online disclaimers of liability, IP licensing, password protection, fire-walling, back-up systems. These simple measures will help to protect your systems and keep your premium down.
How much to insure
It's difficult, of course, to put a value on your virtual assets. The best way to go about this is to work with a broker who is prepared to take the time to get to know your company and how it works, how its systems have been configured and the levels of staff supervision and awareness.
Please email us to receive more information. [privacy policy]
