Bug Byte
Y2K is everywhere--but in your insurance coverage.
The world might not stop on January 1, 2000, but many computers
will. If you're looking for insurance against Y2K-related
problems, forget it: Insurers and suppliers alike are backing away
from assuming responsibility for any business losses.
"I'm not aware of any product designed to protect small
businesses," says Nancy James, principal of N.P. James
Insurance Agency in Concord, Massachusetts, and a cyberspace
liability specialist. "Every insurance company in the world is
telling people why they're not [going to be]
insured."
Insurance companies argue that, while their policies are meant
to cover unexpected events, there's nothing unexpected about
the millennium's approach. "We know exactly when it's
coming," says James. "You've every opportunity to fix
the problem [now]."
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An even bigger reason not to expect a bailout? There's
simply not enough money to cover expected damages. Some analysts
predict that businesses will lose roughly $600 billion from
millennium-related business interruption. The reserve for all
United States insurance claims--including home, auto and every
other policy type--is only $280 billion.
All the more reason to fix your system before it's too
late.
Claire Tristram is a business and technology writer in San
Jose, California.
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