Monthly Archives: March 2011
Internet Liability – Part 1
Each day more cyber-adventurers decide to create their own Websites or blogs (internet journals) or begin social media activities. The reasons for having a Website or blog vary, or other activities range from frivolity to earnestness. Personal Websites and blogs commonly describe the host, his or her family and interests such as a particular hobby, sports, profession, humor, etc. Whatever the reason for creating a Website or blog, they, along with social network activity can represent an additional source of loss that may require additional insurance. The loss potential is directly related to the purpose and content found on the Website.
New Opportunity For Old Losses
Website liability is an extension of the ages old accountability for what you say or write. Such responsibility extends to household members; so it’s important to be aware of what a family’s little E-wizard may be doing. The types of losses that may be created by a Website, blog, or social media activity include:
- Libel – knowingly publishing false information that harms a person’s reputation.
- Invasion of Privacy – disclosing information that interferes with another party’s peace of mind.
- Infringement – violating or interfering with another’s property rights or the right to pursue business
Oops, You May Not Be Covered
Most homeowner policies protect against liability for tangible injury to another person or for actual damage to another party’s property. Liability created by publishing or broadcasting content typically involves personal (or non-physical) injury that is not covered by a typical homeowner policy. While individuals may be able to add protection (such as add-ons to a homeowner policy or umbrella coverage), certain losses may still be uncovered because they involve intended acts or business activity.
Can You Protect Yourself?
The good news is you can take steps to eliminate or, at least, minimize the possibility of facing electronic publishing-related loss. The first step is to identify areas of concern. The key to understanding and addressing any possible Website liability is to focus upon:
- the nature of the Website or activity
- the Website or account’s contents
- who may be harmed by the site or activity
- how a party may be harmed
It is important that you think hard about these issues and approach the job objectively. Your building a site, blogging or using social media just for “fun” could end with you explaining the punch line in court. Two people can interpret information in radically different ways. Use a method of examining your Website that helps you view it through “fresh” eyes that won’t gloss over important facts. Asking the help of others could be a big plus.
See Part 2 for important considerations about Web activity.
COPYRIGHT: Insurance Publishing Plus, Inc. 2000, 2005, 2010
Internet Insurance – Things you need to know!
Like many other businesses, insurance companies make increasing use of the Internet. Due to this medium’s connection to savvy, technologically astute consumers, it is an ideal method for promoting and selling insurance products. However, even as greater advantage is being taken of electronic insurance transactions, it is important to keep a bit of old, yet still excellent advice – “Let the buyer beware.”
Possible Danger
In some respects, the ‘Net may be no more dangerous than getting information from other sources, but the need for insurance consumers to take care when using such information remains. One major issue is that published information is typically granted a high level of credibility (this includes the information you’re currently reading). It is important to be certain of any information before acting on it. Ten different sources of information can give you ten different answers. Therefore, the safest way to use information is to seek and sort through multiple, credible sources rather than merely place full trust in a single source.
Items to Keep In Mind
The Internet is an incredible tool. However it also provides many opportunities for acquiring information that may be useless or even harmful. Any user should remember the following:
it is often impossible to verify who has posted the information and whether the source has any expertise in the subject matter
material that appears on the Internet may be presented as facts when they are actually opinions or advertisements
the information may be accurate for one set of circumstances, but it doesn’t tell you how the information applies to other situations; at the very least, it should contain a disclaimer
no credible party may have taken responsibility for keeping the information accurate and current
the party that posted the information may possibly have a criminal intent
Internet publishers often forget that their audience is global and the information may only apply to a specific group or geographic location
When seeking information to meet your insurance needs, it’s important to discuss your concerns with an expert. A professional insurance agent is a good source for getting the answers you need to fit your unique coverage situation.
COPYRIGHT: Insurance Publishing Plus, Inc. 1998, 2002, 2005, 2009
All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.
How Big Of An Umbrella Do I Need?
The Umbrella Liability policy is still a relatively new type of insurance coverage for the average business. As recently as 30 years ago, it was seen as only needed by the very largest of business entities. Liability claims and court decisions involving millions of dollars are no longer uncommon; any business can be found legally responsible for this type of judgment. Most Umbrella Liability policies are in excess or “sit on top” of a businesses main liability coverages, mainly General Liability, Auto Liability and the Employer’s Liability part of Worker’s Compensation insurance.
How much excess liability a business owner should carry on her Umbrella policy depends on several factors. First, are there any contractual requirments from clients, vendors, franchisors or suppliers? It is common for these to require certain liability limits in order to do business.
Another factor a business should look at is the limits that other, successful companies in their industry carry. While this is certainly not an exact method for determining limits, it does provide a good guide to start with.
The final, and in my opinion most important, factor a company needs to look at in accessing how much excess liability insurance they should have is the amount of equity the business has. If you own a motorcyle dealership where the bank owns the building, the manufacturer owns all the inventory and all you have is $100,000 in tools, it doesn’t make much sense to carry a $5 million Umbrella. Conversly, if you own the building outright, own half of the inventory and $1,000,000 in tools and equipment, you would want a large Umbrella policy to protect your assets.
In the event of a lawsuit against a business, one of the first things the plaintiff”s attorney is going to do is suponea the business’s insurance and financial records. A cynical person might suggest that the lawyer will look at the company’s assets versus their insurance limits to determine the size of the lawsuit.
NuStar Insurance of Traverse City 