Forum Moderators: LifeinAsia
They had an insurance policy to cover them if someone came to their house, (a home-office for the web based business), and got hurt, or if anyone got hurt when they had a booth or table at an event, (in case someone got hurt by something they gave away or the booth or table itself).
After a change in carriers their insurance company doesn't want to renew the liability policy.
They say its because it is a revenue generating online business, (a community portal type website with ad revenue).
The insurance companies are afraid of the customer being sued for "anything on the website that might be wrong", (even though the policy would be written to exclude website coverage).
The customer is hesitant to put up message boards. They were told that having them raises the rate, or they just can't get insurance...
Comments?
All lawyers that make a living chasing frivolous lawsuits should be burnt at the stake tomorrow morning!
This is a very, very sad way for the World's most advanced society to behave!
I won't lend my neighbor my car or power tools, I won't let their kids swim in my pool, I won't allow anyone "unknown" onto my property because they might sue me if they get hurt!
It is a ridiculous situation for all responsible people that live in the USA, but, there is little choice as the "Ambulance Chasers" are out to sue anyone who can pay!
I personally would like to see the law changed so that any law firm that filed a law suit determined to be frivolous in nature became liable for both the costs and punitive damages against the defendant. Right now the lawyers get a free ride (except their time), they need to be made to have some skin in the game.
In a civil suit with counter litigation the law firm should be held responsible, not the plaintiff, for judgments and costs.
Right now Attorney's can try anything worth their time, if they had to pay damages they might think more about what was really just!
To reduce Insurance you have to reduce liability. Insurance would be a low lower if it only had to deal with gross negligence and not all the frivolous stuff.
* check with your state/provincial/national insurance regulator. Requirements vary by jurisdiction and sometimes insurers can be forced to play nice.
* when an insurer makes a change, especially in coverage, do an immediate check for the coverage you do want. There may well be what you want elsewhere.
* it is almost always best to work through an independent agent who can deal with any insurer.
* always detail what coverage you want before talking with an agent. Like having a grocery list rather impulse buying. An insurance plan, like its parent the business plan, is a wise toolset.
* always solicit a minimum of three agents for quotes. Note differences, etc. and revisit each with a followup 'interview'. Repeat as necessary. Do not rush to a decision.
* check out (there are many good online sites, likely including your local insurance regulator) each suggested insurer as if checking out a business partner. In a way it will be - your safety net partner.
* pick your insurance agent like your doctor, lawyer, accountant: if you feel uncomfortable or their rep on the gossip circuit is poor go elsewhere.
Just as most people have hazy notions about the internet so do many companies including insurers. The USA tends to less consumer regulation (although some states are active) so Americans may have to look harder or pay more for less than other jurisdictions.
Good hunting to your client.
With that said, my customer WANTS to be insured...
The site serves a 1/2 million pages a month, on about 65,000 visits... all it would take is one good-
"So an so is a __________."
-or-
"_________ restaurant hires illegal immigrants who have AIDs."
...and the owner of the site is open to a lawsuit.
So the question remains:
What, if anything are other online content based businesses doing in regards to liability insurance?
(especially content posted by others on message boards, etc..)
(thanks for the general suggestions IAMLOST)
the question is concerning getting sued; I would consult a lawyer. I wouldn't go with webmaster's views on the law. Unless they are a lawyer from your country.
This issue must be be extensively disscussed on the web and easy to find because so many sites allow users to post.
>"insurance minimizes your risks"
Who the heck are you kidding?
Insurance increases your chances of getting sued!
Why? Simply because someone is going to pay.....namely the insurance company!
Do you want to file a lawsuit against an organization that is worthless? You'll find it hard to get an attorney to do that in most cases ;)
Heck most of us are encouraged to buy insurance to protect ourselves against those that didn't buy insurance....now, think about that for 10 minutes and then come to a conclusion!
What, if anything are other online content based businesses doing in regards to liability insurance
Well, for the particular liability you're talking about (user libels third party using company resources), here in the EU that's covered by the 'mere conduit' rules. The industry practise is 'notice and takedown', i.e. when you get notice of infringing content, you take it down.
As long as you do this, you're not legally liable for the libel - this is just my understanding of course (IANAL), and I'm not aware of any case law on this. That said, one of our users has had legal action taken against them in the high court on an issue like this, and we were able to stay well out of it.
I'm not sure of the US position, but WIPO has some info on this. Try searching 'safe harbor' 'mere conduit', etc.
So anyway, I don't know of any insurance products for this liability, but the conventional wisdom that I'm hearing is that it's not abig legal risk. Probably you (or your client) should get a legal opinion on it, of course.
hth, a.
Update: from WIPO's website, looks like the DMCA is the US legal mechanism for dealing with this problem.
The simple fact is we (Americans) are litigation happy -- and if you have assets, and the insurance coverage is affordable, you can sleep better at night knowing someone isn't going to try to clean out your bank account or take your real estate.
(Thanks for the pointers Andye; my customer is watching this thread to see what "Professional Webmasters" are doing or suggest doing in regards to insurance).
Talk to a really good Attorney. Don't have assets!
Insurance is for those that can't sleep at night without it. Own nothing, but have everything, and you sleep at night just great without insurance.
Look at trusts, they are really not only for the mega-rich like Gates. They are for the protection of your assets, and are far cheaper than paying an insurance company!
