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Internet Business Insurance
Internet businesses find that their security is vulnerable to hackers' efforts as well as result of computer viruses. In order to increase their own security (as well as that of their clients), web-based businesses are choosing to take out
specialized insurance policies that cover any liability that they may incur as a result of damage done to their business.
Given the slipperiness of online security, a number of industry players have initiated consensual means to assure both the security Internet businesses experience, as well as the security of their clients' transactions. The Center for Internet Security benchmarks are intended to serve as a security ‘ruler' to which managers, business partners and insurance underwriters alike can refer. Each increment on the CIS ‘ruler' represents a set of security-enhancing actions: by referring to this ruler, organizations can select the level of security they consider appropriate for their operations, and implement the specific recommendations associated with that security level. Furthermore, the CIS benchmarks specify interventions that are suitable for implementation before, during, and after an attack to control and limit losses. Finally, CIS benchmarks can be customized for specific industries or specific risk profiles.
Individual insurance providers' datasets of actuarial statistics differ widely, so the industry seeks standardization in order to insure comparable levels of security for all companies that take out Internet business insurance. Premiums for traditional insurance are calculated on the basis of the frequency of occurrence of certain risks, for every kind of event from automobile accidents to fire and floods. Full actuarial statistics for every kind of incident are available for age, gender, and a number of other criteria.
While the industry seeks to establish steps toward business' security, the premiums for Internet business insurance vary from one provider to another. Observers suggest that the kind of consensual benchmarking that CIS represents is linked to the standardization of Internet business insurance premiums. Industry experts point out that Internet liability insurance premium discounts for demonstrated compliance will foster adoption of consensus based-benchmark practices.