The Wakefield, Mass.-based ASP Industry Consortium announced the availability of a new insurance program designed specifically for application service providers (ASPs). The program, developed in conjunction with InsureHiTech, an insurance brokerage for New Economy companies, provides comprehensive protection against the risks inherent in web-based enterprise.
Coverage is provided through AIG netAdvantage(SM), a product suite from American International Group, Inc. (AIG). Developed in conjunction with the ASP Industry Consortium, the coverage is available to any application service provider, though ASPIC members will receive a significant discount as a benefit of membership.
The coverage provided by AIG netAdvantage addresses virtually all of the potential risks faced by an ASP. It includes:
— Media liability coverage: Protection against liability arising from Web content, such as libel, slander, invasion of privacy, and copyright or trademark infringement.
— Professional liability (Errors and omissions): Protection against wrongful acts committed in the performance or non-performance of Internet, professional or technology-related services.
— Security liability: Protection against computer attack, unauthorized access, unauthorized use or malicious code.
— Extortion coverage: Protection against threats to commit an intentional computer attack or other security breach for financial gain.
— Asset and income protection: Protection of an ASP’s data assets and business income in the event of a covered security breach.
— Criminal reward fund: Reward monies up to $50,000 for information leading to the arrest and conviction of a cyber criminal.
— Crisis management fund: Coverage of up to $50,000 in public relations expenses relating to a claim covered under the policy.
Participants will have two coverage options, one designed to complement any existing Errors and Omissions coverage and which includes Errors and Omissions coverage. Premiums will be determined by several factors, including the size of the ASP’s assets, its existing security measures, its technology, and its policy limits and deductible. Policy limits will range from $1 million to $25 million, with policy deductibles starting at $50,000.
In addition to offering discounted liability insurance to members, the ASP Industry Consortium plans additional insurance-related initiatives. These initiatives include:
— Sponsorship of annual ASP security seminars that will include an insurance component and feature panel participation by InsureHiTech and/or AIG.
— Periodic publication of white papers and insurance-related articles within the Consortium website or member newsletter.
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