Insurance Community University Website Review - The Five Key Areas You Must Review On A Client’s Website Presented By: Marjorie L. Segale, AFIS, CISC,

Insurance Community University

Website Review - The Five Key Areas You Must Review On A

Client’s Website

Presented By:Marjorie L. Segale, AFIS, CISC, CIC,

CRIS, RPLU, ACSR, CISRDirector of Education

Insurance Community Center

1


DisclaimerInsurance forms and endorsements vary based on insurance company;

changes in edition dates; regulations; court decisions; and state jurisdiction. This instructional materials provided by Insight is intended as a general guideline and any interpretations provided by Insight do not modify or revise insurance policy language. The authors of these

materials, Insight Insurance Consultants is a division of Insight Consulting and Management Inc. In providing these materials, Insight assumes neither liability nor responsibility to any person or business

with respect to any loss that is alleged to be caused directly or indirectly as a result of the instructional materials provided. Copyright

2010 - 2011All Rights Reserved

Laurie: 714.803.5830 [email protected] Marjorie: 714.206.9583 [email protected]

www.theinsurancecommunity.com

2


What This Class Will Cover

1. Web site used for promotion only or includes sales on-line

2. Company profile – background information3. Products and services, locations and

territories4. Employees: permanent and temporary

locations, out of state, out of country5. Dependency on other websites – frames and

links

3


4

First – Some Background Information


The Evolution of E-Business

5


E-Business

• “E-Business” covers any form of business, or administrative transaction, or information exchange, between a company and the outside world, that is executed using any information and communication technology

6


Types of E-Business

7


Types of E-Business

8


9

Website Definitions


Definitions

10


Definitions

11


E-Business Risk

• Global risk and suits increasing• Customers need proper protection– First party losses• Theft / destruction of data

– Third party losses• Defense costs• Financial loss• Regulatory fines and penalties• Customer credit monitoring services

12


E-Business Risk

• Many federal and state statutes and defining regulations have been issued over the last 15 years– Court interpretations of compliance

continue unabated

• Insureds selling products or services over the internet must comply with international regulations

13


Website Review

Identification of Risk

14


Discover Your Client

• Search insured’s address– This is helpful to identify related

businesses, customers, clients, contracts

• Search for key personnel– Identify involvement in other companies– This is helpful for cross-selling if any of the

insured’s executives or board members are involved in other companies.

15



• Look at their website to identify exposures

• Advertising only– Insured’s operations only– Others • Banners• Links• Frames



• Products or services sold– Limited sales territory by state, country, zip code– Unlimited territory

• Foreign risk

• Warranties or representations• Bulletin board / chat room / blog– Privacy, libel, slander

• Encryption use• Privacy statement



• Description of operations, products, services

• Contact page– Cross reference to locations

• About us– Use this as the narrative for account

submission to underwriter

• In the News– Review for company announcements


Sample Websites

www.thehagermangroup.comwww.masilva.com

www.maryspizzashack.com

19


Identify Risk and Provide Proper Solutions

“Normal Insurance”Cyber Coverage

20


21

Property, Business Income, Crime


Property Policies

• Require damage to tangible property• Data is NOT tangible• No trigger for direct loss or resultant BI /

EE for damage to data• Perils are inadequate– Virus– Programming errors– Unauthorized use / repudiation of access

22


Business Income / Extra Expense

23


Crime

24


Crime Policies

• Require damage to tangible property• Data is NOT tangible• No coverage for resultant BI / EE• Coverage is first party – not third party• Perils are inadequate– Virus– Programming errors– Unauthorized use / repudiation of access

25


CGL Policies

• Federal regulations fines and penalties– Not covered

• Invasion of privacy, defamation, libel– Covered but territory is limited

• Breach of security or unintentional release of confidential information– Not covered

26


CGL Coverage Territory• E-Commerce – Allows coverage for worldwide offenses• “Suit” must be brought within U.S.A., its

territories and possessions or Canada

– “Personal and advertising injury” offenses that take place through the Internet or similar electronic means of communication


CGL Policies

• Advertising injury– ONLY copyright and trade dress covered– Must arise out of advertisement of

insured’s business (not others)– Trade mark, service mark, patent NOT

covered

28


Intellectual Property Exposures and Advertising

Trademarks / Service MarksTrade DressCopyright

Patent

29


Trademarks / Service Marks

• Brand names – can be registered through USPTO– www.uspto.gov

30


Other Types Of Marks

31


Trade Dress

32


Copyright

33


Patents

34


Types of Patents

35


Types of Patents

36


International Exposure

37


Internet IP Issues

38


Internet IP Issues

39


Internet IP Issues

40


Advertising Exposures

• The insured’s business• Linking / framing to other businesses• Advertising for others– Non-revenue– Revenue

41


Advertising Exposures

• Third party suits– Advertising own business– Linking, framing, advertising another

business

42


Meta Tags

43


Meta Tags Exposure

44


Privacy of Data

45


Privacy of Data

46


47

Coverage Solutions


Property Solutions

• EDP– Include direct loss, BI and EE– Check for virus coverage

• Cyber specialty forms– Direct AND indirect loss coverage• Destruction of data• Virus extraction• Denial of Services• Coverage for terrorism

48


Business Income Solutions

• Cyber Property loss of business income and Extra Expense– Illegitimate use– Denial of service – server overload– Virus– Standard Causes of Loss• On-site• Dependency


Business Income Solutions

• Contingent Business Interruption– A contingent business interruption loss

results from the failure of suppliers' or customers' systems (rather than the insured's systems)

50


Crime Solutions

• Specialty coverage under Cyber-forms– Typically includes unauthorized access,

alteration, copying, and unauthorized use of data

– Loss of trade secrets

• Computer Fraud coverage (standard coverage form)

• Website Extortion (standard coverage form)

51


Liability Solutions

• Cyberliability coverage– Intended to “fill in” for coverage gaps in

standard liability forms– Check defined perils– Every policy is different• Majority of policies do NOT include coverage

for patent suits– Intellectual Property coverage – separate policy

52


Liability Solutions

– Infringement of copyright, trademark, service mark, trade dress

– Invasion of privacy– Loss of trade secrets– Damage to third party’s system or data• Transmittal of malicious code

53


E-Business Client Review

• Does the website provide– Advertising only – Products / services purchase online

• Do you have a company blog?• What is your privacy policy?

54



• Do you maintain important or confidential information (employees, customers) electronically?

• What would happen if your system was hit with a virus?

• Do you know the financial cost of replacing that data?

• Do you use a computer network to operate your company?

55



• Do you communicate via the internet with your clients? – What would the cost be if an employee

transmitted a computer virus to your customers?

• Are you vulnerable to a cyber extortion threat?

56



• Do you use copyrighted material belonging to others in your advertising, on your web site?

• Does your web site link to other web sites?

• Do you use laptops/PDA’s in your business? – Is there personal information stored on

those laptops/PDA’s

57


Submission Information

• Determine client’s risk category– Web presence only– E-business– Technology

• Obtain application and provide to insured to complete– Warranty– Representation

• Other information for submission– Security questionnaire


Some Insurance Markets

• Hiscox• Chartis• ACE• CNA• Chubb• The Hartford• Travelers• Media Professionals

59


Summary

• Do a website review because you :– Can find out additional information about

your client– Have an opportunity to discuss additional

risk and sell additional coverages– Can possibly forestall a negative view of the

account from the underwriter


Summary

• Check your insurance markets FIRST– Understand what is available

• Identify insured’s specific risks– Match with best available coverage form

• Present and explain– If rejected – obtain signature from your

customer

61

Documents

Insurance Community University Website Review - The Five Key Areas You Must Review On A Client’s Website Presented By: Marjorie L. Segale, AFIS, CISC,