Techinsurance – We're the Business Insurance experts for IT services, providing General Liability, Professional Liability, Workers Comp, Umbrella, and Errors and Omissions Insurance
Web Business Insurance
The purpose of
web business insurance is to protect your business from
damage resulting from computer viruses to data or covered systems;
attacks to your computer hardware, and/or intranet; public disclosure of private information, and/or libel, slander, disparagement, and/or e-business extortion; copyright infringement and/or theft of data, income, securities, software, or computer resources.
Standards for the web business insurance industry are in a constant state of development. The American National Standards Institute of New York has stepped forward to propose procedures that will allow insurers and business partners to exchange data without writing individual application programs for each data exchange. While this will facilitate the eventual standardization of actuarial tables for the industry, ANSI standards were not specifically designed with risk managers' and insurers' data exchanges in mind.
Consequently, the Risk & Insurance Management Society Inc. task force met in 1999 to invite industry insurers and TPAs to cull data from their respective databases and make a common data reporting form available to their clients. This choice rejected the more costly alternative; to agree to a data standard that would transform the way they collect and organize data. As long as standards remain in flux, and the data conversion process has both increased system costs and lost risk managers' data analysis opportunities.
While many of the risk factors for which cyber businesses seek insurance policies, web business insurance premiums are also set on the basis of risks that are uniquely present in a web business environment. These include networked transactions, changing technologies that transform businesses in a very short period of time, the vulnerability of hardware to software, and short product life cycles. As common data reporting standards develop, the actuarial tables necessary to standardize premiums across the industry will facilitate comparable premiums. In the mean time, premiums vary from one provider of web business insurance to another.