What does Internet liability insurance cover?

Internet liability insurance protects businesses and sole proprietors from losses related to Internet activity. Unfortunately, many people who are online approach business websites with malicious intent. Hackers may gain access to company websites and steal proprietary information or private customer information.

In addition, businesses may simply make careless mistakes with information while online, and those mistakes could prove costly. Any business with an online presence should consider coverages related to intellectual property and virus security.

However, companies engaged in e-commerce should protect themselves further by considering a wide variety of policies.

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Intellectual Property Coverage

An online business may wrongly or inadvertently misuse the intellectual property of others. Intellectual property may include:

• Advertising material
• Copyrighted material
• Slogans
• Trademarks

When businesses infringe on the intellectual property of others, they may become the subjects of a costly lawsuit. Even inadvertent copyright infringement could result in hefty settlements and compensation to the wronged party.

Internet liability insurance would protect both personal and business assets against claims brought against a company.

Business owners should look into intellectual property insurance to protect them against all forms of intellectual property lawsuits.

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Failure to Protect Private Information

 

Many companies, particularly those with extensive customer files, have large databases filled with sensitive customer information. This information may include:

• Credit card information
• Social security numbers
• Checking account numbers
• Identifying information such as name, address and telephone number

If an employee, for instance, takes private customer information and uses it to commit identity theft, then the business could be liable for the clients’ losses because they didn’t take adequate measures to protect personal data. Businesses that have Internet liability insurance would have protection against claims that are brought due to the careless or premeditated actions of employees.

Employees may not be the only sources of information misuse within a company. News reports provide almost daily bulletins about companies whose customer files have been penetrated by hackers and identity thieves. In the modern age, even the best web security systems are vulnerable to attack. Companies can rely on Internet liability insurance to protect them from substantial losses.

Plagiarism

Large organizations produce a great deal of content. Unfortunately, some web developers and marketing professionals copy their content from the web or other sources and use it on their own sites or in their own article marketing campaigns. Plagiarized content could include:

• Literary formats
• Artistic formats
• Characters
• Performances

Even if an outside developer is at-fault, a company could still be held liable for plagiarism on its website or in its marketing campaigns. By obtaining Internet liability insurance, companies will ensure that they are not forced to turn over business or personal assets as part of compensation for plagiarism. You can use some of these tactics to protect your website from plagiarism.

Transmission of a Computer Virus

 

Companies may be hacked with malware or may accidentally transfer a computer virus to customers because they have taken inadequate security measures. Viruses may be accidentally transmitted to:

• Customers
• Suppliers
• Supporters
• Any other authorized user

Updating virus software usually takes a great deal of time and interaction with the IT department. This could cause end users to avoid updating, which could leave their systems vulnerable to attack. Businesses would be liable for malware and virus transmissions because they failed to make the upgrade, even if their intentions were for the good of the business at the time.

Internet liability insurance would pay for the losses incurred by clients without causing business owners to lose everything that they own. If you do any kind of business on the internet, it would be wise to have internet business insurance. Enter your ZIP code in our comparison tool to compare internet liability insurance quotes for FREE.

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Comparing Online Insurance Quotes

To purchase Internet liability insurance, companies may either talk to an insurance agent or compare quotes online.

Comparing insurance quotes online allows companies to have at-a-glance information about the important features of different policies.

Online quotes may also be more affordable than quotes from an agent. When comparing insurance quotes, companies should look at the following policy elements:

Premium

An insurance policy premium is basically the monthly payment required to retain the policy. Some people tend to choose the company with the cheapest premium without considering other factors. As a result, companies could end up underinsured during a crisis. Ideally, companies should find the insurer who provides the most options for the least amount of money.

Reputation

In an emergency, companies need to know that their insurance company will be available to them and will fulfill the terms of their policy. Before choosing an insurer, customers should check out the company’s reputation and find out how long they have been in business. Business owners should consider paying a higher premium for coverage from a well-regarded insurer.

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Deductible

 

The deductible is the amount that the customer has to pay before the insurance policy provides coverage for losses. Higher deductibles tend to mean cheaper premiums, but companies must have enough cash saved to ensure that they can pay a high deductible in the event of an emergency.

Coverage

Companies should look to see how much coverage an insurer offers for the price. Less coverage may mean lower premiums, but being underinsured in the face of catastrophic loss could be a business owner’s worst nightmare. Business owners should obtain sufficient coverage for their needs even if they have to pay higher premiums.

Time period

Most liability policies do not cover incidents that happen before a policy goes into effect. Companies should be aware that if their breach has already occurred, then purchasing a policy today will usually not pay for damages incurred in the past.

In the age of the Internet, companies open themselves to a whole series of new possibilities. Unfortunately, those possibilities also come with a sea of potential liabilities. Smart companies will add Internet liability insurance to their portfolios and will consider it to be just as vital as any other liability policy. Use our FREE comparison tool to compare insurance quotes from multiple companies for FREE!