E-mail and internet risk insurance for SMEs

Click for Cover, a Lloyd’s e-risk underwriting agency, announced the launch of its SME product last week. The underwriting process consists of just a one-page tick-box proposal form, and premiums range from £750 for comprehensive cover of up to £250,000 (or £900 for cover up to £500,000) with a £2,500 excess.

The product covers claims made by third parties for:

• Libel and slander due to e-mail or web site content
• Breaches of confidentiality or rights of privacy
• Misleading advertising, pricing or jurisdictional issues
• Damage to their computer systems and/or records
• Their losses as a result of your computer systems being inaccessible or as a result of you losing their data.

It also covers claims made by your employees for

• An inappropriate workplace (e.g. sexual harassment due to e-mail content)
• Breaches of confidentiality

Finally, you can claim for your own losses for:

• Costs incurred in repairing the damage caused to your computer systems and finding, replacing or restoring your computer records as result of a hack attack or virus
• Ransom demands or threats to introduce a virus into your systems or to disseminate your data to third parties
• Legal expenses incurred in the enforcement of your intellectual property rights on the internet
• The cost of a public relations consultant to mitigate the damage to your reputation as a result of any loss that is covered under the policy.

David Walsh, managing director of Click for Cover comments:

"As with most businesses today, SMEs are becoming increasingly reliant on internet technology and increasingly aware of the risks their businesses face as a result. These e-risks are not covered by traditional insurance policies and many SMEs have found it hard sourcing adequate and affordable cover. We believe Club Esurance will help solve this problem.”

The Club Esurance protection also comes with a 24/7 claims help line and access to insurance and IT professionals. Professional Indemnity cover can also be incorporated into the Esurance product, to protect against liability for negligent acts.