Insurance Community University Website Review - The Five Key Areas You Must Review On A Client’s Website Presented By: Marjorie L. Segale, AFIS, CISC, CIC, CRIS, RPLU, ACSR, CISR Director of Education Insurance Community Center 1

Insurance Community University Disclaimer Insurance forms and endorsements vary based on insurance company; changes in edition dates; regulations; court decisions; and state jurisdiction. This instructional materials provided by Insight is intended as a general guideline and any interpretations provided by Insight do not modify or revise insurance policy language. The authors of these materials, Insight Insurance Consultants is a division of Insight Consulting and Management Inc. In providing these materials, Insight assumes neither liability nor responsibility to any person or business with respect to any loss that is alleged to be caused directly or indirectly as a result of the instructional materials provided. Copyright All Rights Reserved Laurie: Marjorie:

Insurance Community University What This Class Will Cover 1.Web site used for promotion only or includes sales on-line 2.Company profile – background information 3.Products and services, locations and territories 4.Employees: permanent and temporary locations, out of state, out of country 5.Dependency on other websites – frames and links 3

Insurance Community University 4 First – Some Background Information

Insurance Community University The Evolution of E-Business Stage Four: Website is used for active commerce Stage Three: Adds interactive communications Stage Two: Creates website as electronic billboard Stage One: Use of the internet for or other communication 5

Insurance Community University E-Business “E-Business” covers any form of business, or administrative transaction, or information exchange, between a company and the outside world, that is executed using any information and communication technology 6

Insurance Community University Types of E-Business E-tailing: Uses "virtual storefronts" for transactions on a Web site or a "virtual mall" Business-to-business: (B2B) buying and selling Business-to-Consumer (B2C) buying and selling 7

Insurance Community University Types of E-Business Content providers: Provides information through portals, search engines and specialty providers of content Internet intermediaries: Their Web- based business generates revenues through advertising, membership subscription fees, and commissions. 8

Insurance Community University 9 Website Definitions

Insurance Community University Definitions Reciprocal Link A mutual link between two objects, commonly between two websites to facilitate traffic Resource Link Hyperlink to a website or a specific webpage containing content believed to be beneficial, useful and relevant to visitors of the site establishing the link 10

Insurance Community University Definitions Framing Imports the content of another web site to the web site currently in use Imported data is "framed" within the site Banner Advertisement placed above, below or to the side of a content page Linked to advertiser's own Web site 11

Insurance Community University E-Business Risk Global risk and suits increasing Customers need proper protection – First party losses Theft / destruction of data – Third party losses Defense costs Financial loss Regulatory fines and penalties Customer credit monitoring services 12

Insurance Community University E-Business Risk Many federal and state statutes and defining regulations have been issued over the last 15 years – Court interpretations of compliance continue unabated Insureds selling products or services over the internet must comply with international regulations 13

Insurance Community University Website Review Identification of Risk 14

Insurance Community University Discover Your Client Search insured’s address – This is helpful to identify related businesses, customers, clients, contracts Search for key personnel – Identify involvement in other companies – This is helpful for cross-selling if any of the insured’s executives or board members are involved in other companies. 15

Insurance Community University Discover Your Client Look at their website to identify exposures Advertising only – Insured’s operations only – Others Banners Links Frames

Insurance Community University Discover Your Client Products or services sold – Limited sales territory by state, country, zip code – Unlimited territory Foreign risk Warranties or representations Bulletin board / chat room / blog – Privacy, libel, slander Encryption use Privacy statement

Insurance Community University Discover Your Client Description of operations, products, services Contact page – Cross reference to locations About us – Use this as the narrative for account submission to underwriter In the News – Review for company announcements

Insurance Community University Sample Websites

Insurance Community University Identify Risk and Provide Proper Solutions “Normal Insurance” Cyber Coverage 20

Insurance Community University 21 Property, Business Income, Crime

Insurance Community University Property Policies Require damage to tangible property Data is NOT tangible No trigger for direct loss or resultant BI / EE for damage to data Perils are inadequate – Virus – Programming errors – Unauthorized use / repudiation of access 22

Insurance Community University Business Income / Extra Expense System shut down due to virus Loss / theft of data ISP / hosting service shutdown (contingent) Sales of product or services through website 23

Insurance Community University Crime Hacker places unauthorized instructions into insured’s system Loss of stock or money Hacker theft of information Fraudulent credit cards Avoid risk Charge “cleared” and paid before shipping Employee theft of customer credit cards 24

Insurance Community University Crime Policies Require damage to tangible property Data is NOT tangible No coverage for resultant BI / EE Coverage is first party – not third party Perils are inadequate – Virus – Programming errors – Unauthorized use / repudiation of access 25

Insurance Community University CGL Policies Federal regulations fines and penalties – Not covered Invasion of privacy, defamation, libel – Covered but territory is limited Breach of security or unintentional release of confidential information – Not covered 26

Insurance Community University CGL Coverage Territory E-Commerce – Allows coverage for worldwide offenses “Suit” must be brought within U.S.A., its territories and possessions or Canada – “Personal and advertising injury” offenses that take place through the Internet or similar electronic means of communication

Insurance Community University CGL Policies Advertising injury – ONLY copyright and trade dress covered – Must arise out of advertisement of insured’s business (not others) – Trade mark, service mark, patent NOT covered 28

Insurance Community University Intellectual Property Exposures and Advertising Trademarks / Service Marks Trade Dress Copyright Patent 29

Insurance Community University Trademarks / Service Marks Brand names – can be registered through USPTO –

Insurance Community University Other Types Of Marks Certification mark Indicates the existence of an agreement between an organization and a nationally accredited testing and certification company Collective mark A mark owned by an association Used by members to indicate their membership in the organization 31

Insurance Community University Trade Dress Legal term of artwork used to visually identify a particular product or manufacturer of a product to a consumer Contained in trademark law 32

Insurance Community University Copyright Exclusive rights granted to the author of an original work Ideas are not protectedOnly the expression of those ideas Copyright protection exists once the work has been created Does not require registration nor distribution 33

Insurance Community University Patents Protection granted to an inventor “to exclude others from making, using, offering for sale, or selling the invention throughout the United States or importing the invention into the United States” 34

Insurance Community University Types of Patents Utility patents Invents or discovers a new or useful Process Machine Article of manufacture Composition of matter 35

Insurance Community University Types of Patents Design patents Invents a new, original, and ornamental design for an article of manufacture Is not “useful” Plant patents Invents or discovers and asexually reproduces any distinct and new variety of plan 36

Insurance Community University International Exposure A patchwork area of intersecting multilateral and bilateral agreements among nations Increasingly important and frequently litigated area Increase in demand for legal protection Domain names Databases Software 37

Insurance Community University Internet IP Issues Copyright infringement Object codeArticlesMusicVideo 38

Insurance Community University Internet IP Issues Trademark / service mark infringement Placing unauthorized mark on site Domain nameMeta Tags 39

Insurance Community University Internet IP Issues Trade dressColors Style of expression 40

Insurance Community University Advertising Exposures The insured’s business Linking / framing to other businesses Advertising for others – Non-revenue – Revenue 41

Insurance Community University Advertising Exposures Third party suits – Advertising own business – Linking, framing, advertising another business 42

Insurance Community University Meta Tags Found in the source code (or invisible background) of each web page Meta tags are used by search engines to read content on a website Two types Part of placement calculation for website on search engine results Description Keyword tags 43

Insurance Community University Meta Tags Exposure Third party suits Another party’s trade name Another party’s protected product name Advertisers on the insured’s website 44

Insurance Community University Privacy of Data Information received from other parties Names / addresses Social security information Financial information Credit cards for payment Stored Non-stored 45

Insurance Community University Privacy of Data Third party suits Invasion of privacy Improper transmission of data causing financial harm to others Employee theft, misuse or deletion of data Hacker intrusion – theft or deletion of data 46

Insurance Community University 47 Coverage Solutions

Insurance Community University Property Solutions EDP – Include direct loss, BI and EE – Check for virus coverage Cyber specialty forms – Direct AND indirect loss coverage Destruction of data Virus extraction Denial of Services Coverage for terrorism 48

Insurance Community University Business Income Solutions Cyber Property loss of business income and Extra Expense – Illegitimate use – Denial of service – server overload – Virus – Standard Causes of Loss On-site Dependency

Insurance Community University Business Income Solutions Contingent Business Interruption – A contingent business interruption loss results from the failure of suppliers' or customers' systems (rather than the insured's systems) 50

Insurance Community University Crime Solutions Specialty coverage under Cyber-forms – Typically includes unauthorized access, alteration, copying, and unauthorized use of data – Loss of trade secrets Computer Fraud coverage (standard coverage form) Website Extortion (standard coverage form) 51

Insurance Community University Liability Solutions Cyberliability coverage – Intended to “fill in” for coverage gaps in standard liability forms – Check defined perils – Every policy is different Majority of policies do NOT include coverage for patent suits – Intellectual Property coverage – separate policy 52

Insurance Community University Liability Solutions – Infringement of copyright, trademark, service mark, trade dress – Invasion of privacy – Loss of trade secrets – Damage to third party’s system or data Transmittal of malicious code 53

Insurance Community University E-Business Client Review Does the website provide – Advertising only – Products / services purchase online Do you have a company blog? What is your privacy policy? 54

Insurance Community University E-Business Client Review Do you maintain important or confidential information (employees, customers) electronically? What would happen if your system was hit with a virus? Do you know the financial cost of replacing that data? Do you use a computer network to operate your company? 55

Insurance Community University E-Business Client Review Do you communicate via the internet with your clients? – What would the cost be if an employee transmitted a computer virus to your customers? Are you vulnerable to a cyber extortion threat? 56

Insurance Community University E-Business Client Review Do you use copyrighted material belonging to others in your advertising, on your web site? Does your web site link to other web sites? Do you use laptops/PDA’s in your business? – Is there personal information stored on those laptops/PDA’s 57

Insurance Community University Submission Information Determine client’s risk category – Web presence only – E-business – Technology Obtain application and provide to insured to complete – Warranty – Representation Other information for submission – Security questionnaire

Insurance Community University Some Insurance Markets Hiscox Chartis ACE CNA Chubb The Hartford Travelers Media Professionals 59

Insurance Community University Summary Do a website review because you : – Can find out additional information about your client – Have an opportunity to discuss additional risk and sell additional coverages – Can possibly forestall a negative view of the account from the underwriter

Insurance Community University Summary Check your insurance markets FIRST – Understand what is available Identify insured’s specific risks – Match with best available coverage form Present and explain – If rejected – obtain signature from your customer 61