Kae Lovaas, president of The St. Paul Companies Global Technology Underwriting unit, told Boston-area agents and brokers about e-commerce risks at a seminar on Tuesday.
She pointed out that traditional insurance policies were developed before the Internet and the exposures arising from it, and stressed what she called the “Big Three” of technology based risk – intellectual property, privacy and network security. According to reports 90 percent of U.S. businesses experienced breaches in their security systems last year.
Lovaas confirmed previously published reports that many businesses do not adequately understand the risks posed by technology, have difficulty identifying potential risks and lack the tools to manage them effectively.
Agents and brokers should play a key role in educating their clients about e-commerce risks, said Lovaas. As the use of technology increases and businesses become ever more dependent on it, the consequences when a system breaks down, or its security is compromised continue to grow as well. Insurers are constantly looking for solutions to cover these growing risks.
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