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Insurance for the Next Millennium
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Business New Haven
10/18/1999
By: BNH
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STAMFORD - Many business sectors have already assimilated or at least accommodated the Internet as an integral part of the new marketplace. Most traditional insurance agencies, however, have not yet made the leap into the e-business world, according to Marsh Inc. Hoping to remedy the situation, Marsh has created a national practice to address e-business and intellectual property risks. The practice's first product is Net Secure, an insurance policy covering e-business risks, which is designed to complement and correct shortfalls in traditional insurance or stand alone as primary insurance coverage.
Says Marsh Assistant Vice President Rodger Laurite: "A disruption or interruption in a company's e-business activities can be extremely costly. Impact on earnings and stock price can occur within hours of an Internet outage, not days or weeks." Network failure or security breaches can place companies at risk, as well as their customers and business partners who depend on and interact with them through networks and Web sites. The result can be adverse publicity, interruption of the revenue stream and lawsuits.
Many companies assume, incorrectly, that their existing liability insurance will cover such losses and any resultant lawsuits stemming from such problems. Most policies protect against perils such as earthquakes or hurricanes with damage to physical assets but do not cover losses related to networked computing and Internet technologies.
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