INSURANCE FOR ONLINE AND E‑COMMERCE RISKS As more businesses operate online, insurance for technology and data‑related risks has become increasingly important. While some traditional coverages may respond to limited aspects of cyber events, many standard general liability and property policies exclude or narrowly cover losses such as data theft, hacking, or cyber‑extortion. Businesses with any online presence or that store sensitive customer or financial data should review: • Cyber liability / data breach coverage , which can help pay for forensic investigations, notification and credit monitoring for affected customers, legal defense, regulatory fines where insurable, and certain business interruption losses caused by cyber incidents. • Technology errors and omissions (tech E&O) coverage , for businesses that design, host, or support software and digital services, protecting against claims that a mistake in your services caused financial harm. Online businesses also face “publisher‑type” risks such as defamation, invasion of privacy, and intellectual property infringement, because websites and social media act as publishing platforms. These risks may be addressed through a combination of general liability, media liability, and cyber policies, depending on the insurer and the policy form. Because policy language and exclusions vary widely, every business should review existing policies with an agent to determine which online risks are covered, which are excluded, and whether cyber or tech‑specific policies are needed. HELP FOR BUSINESSES UNABLE TO OBTAIN LIABILITY INSURANCE Some businesses that serve an important public purpose may find it difficult or impossible to obtain required liability insurance in the standard market. To address this, Minnesota created the Minnesota Joint Underwriting Association (MJUA) as a market‑of‑last‑resort for certain liability coverages. MJUA may provide coverage only when: • Insurance is required by statute, ordinance, or other law; or • Insurance is necessary to earn a livelihood or conduct a business and serves a public purpose; and • The applicant is unable to obtain coverage through ordinary methods. The legislature has specifically authorized MJUA to offer liability insurance to classes such as: • Day care providers, foster parents, and foster homes. • Developmental achievement centers, group homes, and sheltered workshops for people with disabilities. • Certain citizen participation groups. • Liquor liability and certain medical malpractice risks.
131
Made with FlippingBook - Online Brochure Maker