Category: What’s Hot

What’s Hot in the Insurance Industry

Electronic Equipment Maintenance Insurance

If your Electronic Equipment Maintenance costs exceed $20,000 each year, there are some interesting new products on the market which can save you up to 20-25% in annual fees. One stand-alone insurance-based product pays first dollar equipment repair costs, while also administering your service and repair expenses. You save 20-25% on direct costs and save additional administrative expenses! It is expected that you retain your current equipment repair vendors when you transfer these costs to a single expense/administrative entity.

Internet Data Security

Data security is currently the number one technology challenge. Insurance programs can cover statute risks such as:

  • Fidelity (losses from employee acts)
  • Intruder Theft
  • Computer Virus
  • Malicious Acts
  • Extortion
  • Credit Card Transaction protection
  • Credit Injury
  • Virus Clean Up
  • other e-commerce related exposures

E-Commerce and Web Site Liability

Your web site has drawn gratifying interest and you want to expand its services.

  • If you are a manufacturer you plan to provide your customers with on-line order capability.
  • If you are a software provider you offer your clients upgrades and products to download from the web.
  • If you provide consumer product reviews and recommendations, you plan to provide, under manufacturer’s agreement, limited products for purchase directly from your web site.

In addition to the “Cyberspace Risks” I have covered in past newsletters, you are now becoming a product sale entity, thus:

  • subject to strict consumer protection statutes
  • subject to federal trade restrictions
  • considered the original manufacturer, possibly, for non-US produced goods.
  • open to fraud and complex data security issues (see “Internet Data Security” article in this issue).

Make sure your insurer is prepared to defend you for any related claims against you.

Securing the Weak Link in Cyberspace

Bentley College recently hosted a half-day forum on Internet security issues. Officials from the FTC and the Massachusetts Attorney General’s Office joined industry experts to address both problems and solutions to Internet breaches.

Excerpts from “The FTC’s Internet Security Initiative” fact sheet include:

  • Since 2001, the number of reported Internet security breaches has increased over 30 percent.
  • Email volume has increased over 25 percent since 2001
  • 53 percent of computer users apply the same username and password for all sites accessed
  • 25 percent of users write their password down and keep it near their computer
  • 50 percent of computer users fail to update virus protection software

It is realistic to assume that we all are a part of an Internet security statistic. Moreover, many of us fall under some regulatory privacy statutes. Remember, insurers do not defend you for violations of the law!

We need to decide how close our sensitive corporate documents should be to open lines. We need to do that today!

*We thank Bentley College for providing this valuable forum to the Boston business community. Materials provided by the FTC were especially valuable for web sites devoted to Internet security. Many private security consultants generously offered their expertise to the forum. This column has excerpted information provided at the forum.