Internet Liability and Network Protection Policy

October, 2005

ISO E-Commerce Program

| Summary: The Insurance Services Office (ISO) has developed an e-commerce program providing coverage for cyber risks, a growing threat to the world's resources. E-commerce coverage has been available through several specialty markets; this program makes the coverage available through standard markets. The program is being established as a new line of business. Initially, the program consists of the Internet Liability and Network Protection Policy, although there are some endorsements that can modify the policy. ISO intends to expand the program to include financial institutions, advertisers, publishers, and broadcasters.

This article discusses form EC 00 10 07 05 Internet Liability and Network Protection Policy.

Introduction

EC 00 10 07 05 internet liability and network protection policy has been developed to answer the growing need for standardized forms addressing the risks of e-commerce in an increasingly hostile environment. What was once considered a wonderful new way of doing business has become fraught with peril for the unwary. Hackers, phishers, pharmers, as well as out and out thieves have become commonplace. This coverage form is an important “first step” in protecting against loss of electronic data, extortion threat, or wrongful act committed by the named insured with regard to Web site publishing, or a wrongful act with regard to unauthorized access to the insured's computer system with the result that a client's personal information is published. Included as well is business income loss because of an e-commerce incident or extortion threat.

This article discusses coverages, exclusions, and conditions of form EC 00 10 07 05. All words or terms appearing in italics in this article are defined; see Definitions.

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