By: Gretchen Sayers, Esq. and Roxanne Westfall – Media/Professional Insurance

“Why did they sue us? We didn’t do anything wrong!” These are often the first words out of a policyholder’s mouth after a client files a lawsuit against their firm. As many innocent insureds eventually find out, doing everything right does not necessarily shield a company from being sued. If a company ultimately prevails in court, it can cost tens of thousands of dollars to successfully defend against even the most baseless of allegations. While it is virtually impossible to insulate any business completely from litigation, there are practical steps a Technology Service Provider (TSP) in particular can take to reduce the likelihood that a dissatisfied or financially troubled client will file suit. At the very least, these steps will certainly prove helpful in the defense of a suit if litigation cannot be avoided.
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Joel Brady, Claims Counsel – Media/Professional Insurance

Given the ever-expanding reach of the Internet and the proliferation of “e-commerce”, you are most likely aware that spam is more than just an interesting variety of gel-covered luncheon meat. With apologies to those with a predilection for Hormel’s famous product, SPAM™, the pejorative term “spam” refers to unsolicited commercial e-mails. If any facet of your business (or your clients’ business) utilizes e-mail advertising, you should know that at least 37 states have already enacted anti-spam laws. A recently-signed bill from Governor Schwarzenegger’s California, set to become law on January 1st, 2004, is easily the most restrictive anti-spam law yet. Just as the Terminator targeted John Connor, the law is poised to target not only the actual senders of unsolicited commercial e-mail, but also the advertisers whose goods or services are featured in the e-mail.
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Scott Swift, Claims Counsel – Media/Professional Insurance

Have you seen the popular television show featuring Steve Irwin, a.k.a. “The Crocodile Hunter,” on the Discovery Channel? Audiences are mesmerized as the host wades through the waters of Australia in search of dangerous crocodiles, and risks his life as he wrestles them to the ground. Recently, a U.S. publisher has been wrestling with a dangerous “crocodile” of a different sort in the courts of Australia and unfortunately, it appears the reptile has won the initial round.

Australia’s highest court recently issued an opinion that has the potential to adversely impact every publisher whose content is accessible via the World Wide Web. In Dow Jones & Company, Inc. v. Joseph Gutnick, the High Court of Australia decided that a U.S. publisher was subject to jurisdiction in Australia and must defend a libel action filed there solely because the allegedly defamatory article was accessible to Australian Internet users. The Australian High Court is the first court of last appeal in any common law jurisdiction to have addressed this important issue in a defamation case.
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John D. Spiehs, Claims Counsel and Cameron Stracher, Senior Vice President and Special Counsel – Media/Professional Insurance

We all get sick sometimes. Even the healthiest among us. It might start as a tickle at the back of the throat but in the morning it feels like a blistering sandstorm. Thankfully, that’s why we have doctors, and antibiotics, and health insurance. Imagine, however, if we ignored our symptoms; if we tried to treat ourselves until the problem got so severe we had to be hospitalized. Unfortunately, that’s how too many technology companies, particularly smaller entities, conduct their business: ignoring the little risks until they become big concerns that threaten their survival. Then, when they finally decide to address their problems, many will discover that their insurance does not provide the coverage they expect, leading to serious complications and, in severe cases, their ultimate demise.
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Ever-Changing Risk Demands Focused Expertise
Media/Professional Insurance’s CyberLiability PlusTM policy addresses the rapidly evolving exposures in the world of cyber-risk. The policy is designed for any company providing Internet-related services or using the Internet as part of its business activities.

Coverage for dissemination of content and for errors and omissions in services are combined into one policy form. The program is backed by the solid claims-paying ability of the AXIS U.S. Insurance companies, rated A (Excellent) XV by A.M. Best.

Coverage Highlights

• Definition of “Cyberspace Activities” carefully crafted for each account
• Coverage for both distribution of content and errors and omissions in services (both on- and off-line)

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Coverage now includes insured’s unintentional and unauthorized tampering and intentional actions by rogue employees

August 1, 2005—Kansas City, MO Media/Professional Insurance announced today the release of CyberLiability Plus™, an enhanced policy form that addresses the rapidly evolving risks and exposures of organizations that are dependent on the Internet for all or part of their business.

Media/Professional Insurance’s original CyberLiability Plus™ policy form was introduced in 1999 and was one of the first of its kind to provide coverage for services provided and content created by firms that are web-based, doing business on the Internet or using other technologies.

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