Cover your online liabilities with cyber liability insurance

Advances in technology and the rapidly increasing prevalence of the internet in our lives means that websites are becoming an increasingly attractive way for firms to market their products and their company's values. But alongside the luxuries afforded in an increasingly technologically advanced computer age of online ubiquity come ever complicated legal issues relating both to the dissemination and protection of unique material and concepts.

In a climate in which potential risks to a business (or individuals) are becoming increasingly ambiguous, the purchase of cyber liability insurance is becoming important for many. Certain policies will provide cover on a number of issues, including the security of a network, copyright infringement protection as well as measures to offset the potential loss caused if a company's internet provider goes down or through loss associated with a computer attack. Information security and the protection of data is an imperative for many businesses, particularly those storing sensitive information.

The risk and cost of spreading viruses, worms and Trojan Horses may also result in damage to third party computer systems or records and can draw businesses into situations which are hugely draining of resources. Perhaps the most famous case relating to this issue was the ILOVEYOU bug, which infected approximately 45 million company files and cost a total of $2.61 million (£1.3 million). By searching the market for the best possible deal, firms will be able to acquire cover which will pay the cost of system and data repair, reimburse revenue as a result of lost downtime and pay towards legal costs if a third party holds them responsible of spreading a virus.

Protection is also available for damage experienced to a firm's computer network or any data held relating to third parties. And recent research carried out by the Businesslink website

Graeme Trudgill, technical services officer at the British Insurance Broker's Association, has said: "An approved cyber-liability product is a valuable new addition, particularly at a time when businesses are becoming more and more dependent upon the use of email and internet connectivity – and so are exposed to greater risks from malicious attacks on their system." shows that firms are becoming alive to the dangers posed by web security risks. According to the group's research, almost half of SME managers believe they may be subjected to a security risk next year from problems such as electronic viruses, suggesting that adequate cyber liability insurance would ease the worries of those group's utilising online resources.