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Technology Insurance20 June 2000
This time of the year holds a very special place in every Floridian's heart. It brings back such wonderful memories-the massive crowds at the supermarket as you vie to grab that last can of corn from an ever-depleted store shelf, the frantic search for size "D" batteries, and the 25 yard dash to the bottled water aisle. Ah, nothing like memories. While most people insure their homes and businesses against hurricane, few businesses insure themselves against Technology Twisters. These storms don't appear on the weather map. In fact, they usually strike with little or no warning. Recently, they've caused over $10 billion in damages. Worse yet, the odds are good that these storms will hit you more often than hurricanes. While the Technology Twister may use its winds and rain to cause physical damage, it also packs a virtual wallop using its arsenal of viruses, hackers, disgruntled employees, poorly drafted technology agreements, and every other risky thing that you can imagine in the world of technology and the new business of e-commerce. Today is the day to ask yourself whether you would feel adequately insured if a Technology Twister touched down on your corporate computers. If the answer is no, then you need to deal with this issue now. Don't wait for a disaster to strike before you feel compelled to get insurance "for next time." Get the Insurance You Need In simpler times, the rule of thumb for good business insurance coverage was that you needed errors and omissions, business interruption, and property damage policies. However, with the advent of e-commerce, the rules and risks have changed. Amazingly, many insurance policies haven't. Today, any business that uses the Internet for any reason exposes itself to new risks that could have potentially devastating consequences. Moreover, we're not just talking about viruses here. Try some of these on for size: If a court finds you guilty of improperly using someone's trademark online, you could face a fine of up to $100,000.00 per infringement. If you use someone's patented idea on your website, you could pay damages up to three times of the amount of profits that you made from the site. If your firewall fails to stop someone from stealing your company's sensitive data, you could face millions of dollars in liability. Are you worried yet? Let's keep going. Since there are no geographic boundaries on the Internet, your web activities might land you in a courtroom in Europe. Or Asia. Or South America. Or Iraq. What do you think your insurance company would do if you told them that you were being sued in Switzerland because your website violated Swiss laws? You might find them yodeling instead of paying. Have I scared you? I hope so. According to Rick Barnes, a commercial insurance broker with Acordia, ninety-five percent of the businesses that need technology insurance, don't have it. Of course, these businesses won't even realize they don't have it until the Technology Twister permanently reshapes their virtual landscapes. Choosing a Policy Clearly, if your company relies heavily on technology or uses the Internet for business, you should be in the market for technology insurance. The good news is that many insurance companies offer such policies. The bad news is that they often differ significantly. You'll have to do your homework before picking the policy that's right for you. Here are some tips to help you decide.
Technology Insurance
is republished from iGamingNews.com.
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