Safeonline Extends Cover Under SafeEMail Policy

Okemos, Mich.-based digital risk insurance specialist SafeonlineT, has extended cover under its SafeonlineT SafeEmail policy to help businesses keep pace with their growing liability exposures. Pricing remains the same and insured’s will be receiving a letter in the next week to advise them of the extension to their cover.

The cyber-liability policy, initially launched in October 2001, will cover small to medium sized businesses who have a company e-mail system (including now, Instant Messaging) and/or a company Web site, against third party liability claims. Instant Messaging is an increasingly popular Internet-based messaging system that sends electronic messages between users immediately. Unlike e-mail and Web sites they do no usually include a disclaimer of liability.

The insurance under the extended SafeEmail policy provides protection for the insured against their legal liability for actual or alleged:

Defamation – dissemination of informational content (via e-mail, a Web site or an Extranet, or Instant Message) that defames a person or organization, or disparages a person’s or organization’s products or services.

Privacy infringement – dissemination of informational content (via e-mail, a Web site or an Extranet, or Instant Message) that includes content violating another’s right of privacy or that publicly discloses private facts.

Virus transmission – inadvertently transmitting a computer virus to a third party via e-mail or an Instant Message.

Unlawful use of any materials or information held in electronic form.

Cover is provided for all e-mails and Instant Messages sent externally by an employee from their company e-mail address, regardless of whether the message is sent for non-business reasons.

John Wurzler, a vice president at Safeonline said: “Many businesses still think that their Messaging and Web site liabilities would be covered under their standard commercial policies. In fact, over the last few months we have seen many commercial insurers introduce exclusions in respect of electronic risks leaving businesses dangerously exposed.”

Companies employing up to 250 email users can benefit from SafeEmail. Premiums are based on the number of employees with e-mail access and start at $498 for a small business with up to 5 e-mail users, rising to over $8,000 for a company with 250 users. The level of insurance cover ranges from $100,000 up to $1 million. SafeEmail is sold through Safeonline’s growing network of insurance agents using CoverPoint, an Internet-based tool which enables them to rate and bind products in minutes.

Safeonline has created a revised Information Pack for SafeEmail that includes examples of real-life claims scenarios to help brokers explain the risks in a meaningful context.