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You've heard all the hype and know the benefits the Internetcan bring to any small business. But the Web brings potentialhazards, too. This month, we look at three of the biggest businessrisks in cyberspace and how you can protect yourself.
Claire Tristram is a business and technology writer in SanJose, California.
A Tangled Web
Well-designed Web sites can reach thousands of potentialcustomers, but they can also leave your company vulnerable. "Icall it `shark-infested cyberspace,' " says NancyJames, principal of N.P. James Insurance Agency in Concord,Massachusetts, and a specialist in cyberspace liability."There's insurance to protect you, but we're talkingabout very expensive policies that might not protect you from everyrisk."
If you have a Web site, James notes, you're technicallyconsidered a publisher and are therefore liable for all the samethings as a major publisher, including being sued for plagiarism,copyright infringement and libel. In addition, there are nogeographic boundaries on the Web, which can lead to potentialtrademark risks. A business in Chicago with the same legal name asa business in Atlanta never used to worry about customers confusingthe two. On the Web, however, these companies might end up suingone another.
How can you protect yourself? James recommends that in additionto beefing up your liability insurance, you should invest in a fewhours of legal advice before opening your online storefront. Anddon't put up your Web site without including a rock-soliddisclaimer. Want to learn from a company that can afford the verybest in insurance and legal protection? Check out Microsoft'sonline disclaimer at http://www.microsoft.com/misc/cpyright.htm
E-mail Alert
An employee posts a message in an Internet chat room, claimingthat your company is selling a dangerous product. Your seniormanager sends a group message that contains a racist comment. Adisgruntled ex-worker sends a broadcast e-mail to your competitorsthat includes confidential information about your company.
Entrepreneurs like you have faced these and other kinds ofelectronic crises: Although giving your staff Internet access makescommunication easier, it also means that an employee might be ableto break your business with the press of a key.
Your first defense is to make sure your existing liabilityinsurance includes coverage for electronic messages. "It'simportant to check the language in your policy," says James."Electronic communication might specifically beexcluded." If your policy doesn't specifically excludeelectronic communication, you will be covered in most cases.
To protect yourself even further, develop a simple one-pagedocument for your employees that outlines rules about electronicdocuments. State clearly what kind of communication is and is notappropriate and how to respect the confidentiality of company data.Let them know that if they break the rules, they'll beprosecuted.
For more help, pick up a copy of E-Policy: How to DevelopComputer, E-Mail, and Internet Guidelines to Protect Your Companyand Its Assets (Amacom Books) by Michael R. Overly.
Fighting Hackers
Even the Pentagon's computer systems have been the victim ofbreak-ins by savvy computer hackers. How do you protect yourselffrom electronic breaking-and-entering? ICSA Inc., an Internetsecurity services provider in Reston, Virginia, offers itsnetworking services' customers insurance that compensates themfor any network damage resulting from a hacker break-in. For moreinformation, visit ICSA's Web site at http://www.icsa.net/trusecureor contact the company at (703) 453-0500.
Contact Source
N.P. James Insurance Agency, (978) 369-2771, http://www.npjames.com
