Insurance Coverages

e-Liability – What Are Your Risks?

Internet-related liabilities are present whether your company simply uses email or is actively involved in e-commerce. Do you have the appropriate coverage? 

Who Needs a Plan?

Traditional comprehensive commercial general liability (CGL) policies cover many of a business’s typical risks: claims of bodily injury, personal injury, advertising injury, and property damage as a result of your products, premises, or operation are commonly included. However, the prevalent use of technology in almost all businesses now presents a new set of common business risks that your CGL might not protect against. Some carriers do cover some risks related to e-liability in their CGL policies, but many are avoiding liability by including specific exclusions and requiring endorsements for this coverage.

However, insurance carriers are now offering a selection of products specific to the risks technology presents. Recognizing the ins and outs of each product is key in proper policy selection. That’s where Brown & Brown of Connecticut, Inc. can assist you, providing the expertise to make sure you have the appropriate coverage and risk management solutions to meet your needs.

Cyber liability coverage may include an e-comprehensive policy. This policy may cover losses caused by fraudulent modification, accidental alteration, or destruction to electronically stored information. In addition, losses caused by malicious copying of trade secrets, extortion, and introduction of a virus could be covered.

Media liability addresses the losses associated with libel, slander and invasion of privacy and infringement of copyrights.

Email is an essential business communications tool, but its use can cause complications for your company. Employees often misuse company email accounts for personal matters, potentially landing them and their employer in hot water. Also, employers can be held responsible for whatever actions employees take while using the internet at work. It’s important to establish an email usage policy and educate employees on the proper use of email and the internet.

“Employees often misuse company email accounts for personal matters, potentially landing them and their employer in hot water.”

Defend against loss or damage caused by viruses with specialty computer virus transmission coverage. Unauthorized access and use coverage insures against losses when third-party information is stolen, which is important for any business storing confidential or personal information.

Your company may also be entitled to rehabilitation expenses to re-establish your reputation and market share after a loss. Each carrier’s internet-related insurance products need to be closely examined to determine what they will and will not cover, and who will pay the defense expenses. 

Another detail we oversee is whether the policy itself is a claims-made or an occurrence policy. Claims-made policies will only cover losses that are made and reported during that policy period. If this is the case, an extended reporting period (ERP) may need to be negotiated.

E-commerce presents today’s risk managers with new challenges – the information on this website only scratches the surface. To ensure the success of your e-commerce initiatives, Brown & Brown of Connecticut, Inc. recommends a comprehensive risk assessment be conducted to identify potential gaps and appropriate levels of coverage.

Contact us to further discuss your e-liability and the solutions available to mitigate and transfer your risk.

Disclaimer: This resource is for informational purposes only, and is not intended as legal advice. For further information, please consult an insurance professional.
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