Technology Solicitors &
Internet Lawyers

Covering Online Risks with Insurance

The Threats

Viruses, worms, professional hackers, denial of service attacks and other forms of computer security threats are on the increase and yet few companies have proper strategies for either prevention or recovery.  A diligent assessment (or "audit") of these areas of risk, as part of your business risk management strategy, is essential if the business is to survive an attack unscathed.  An audit should include a complete check of the corporate web site, in particular any data protection issues arising from security of the site or indeed your IT system in general.  Check the contractual obligations owed by and to your business.  Are your suppliers sufficiently obliged to perform to protect your interests? 

Include a review both of attacks directed at the company and those directed at other companies by your employees.  Identifying the risk, analysing preventive measures that can be taken and weighing these up against cost and liability should be second nature to any well-protected business in the digital age. 

Much of the analysis can be done in-house provided you have the time and resources available and a good checklist.  Once you have drafted it, have your key advisers - accountant, lawyer, bank manager and management consultant review it. 

Last, but not least, take out good insurance cover.  Most companies appear to incorrectly assume that their existing insurance will cover them.

NEED TO KNOW MORE?

For further information on ecommerce, contact Maitland Kalton or Julian Danobeitia or call us on +44 (0)20 7278 1817

Kaltons Solicitors, Suite 302, Spitfire Studios, 63-71 Collier Street, London, N1 9BE. Telephone +44 (0)20 7278 1817; Fax: +44 (0)207 278 1835.

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