Cover for cyber crime

By PETER GRIFFIN

Better insurance protection could be in store for New Zealand IT companies wanting cover against the rising risk of cyber crime.

Two US companies are offering policies specifically tailored to businesses trading online, an area that the dominant local insurers are approaching with caution.

The Love Bug computer virus reportedly cost companies billions of dollars, but many found their insurers would not cover their lost earnings.

Minnesota-based St Paul is offering IT liability cover called Techsure just as American International Group (AIG) is launching its NetAdvantage and ProTech policies.

Both companies claim their policies cover the range of potentially expensive internet disasters from technology glitches, defamation and copyright infringements through to virus transmission, hacking and denial of service attacks.

AIG spokeswoman Helen Fitness said the nature of policies with online businesses hinged on assessments of their security measures, mostly be more expensive than traditional insurance policies. security assessments on potential policy holders.

St Paul's technology manager Dean Edwards said policies would cover system problems and companies developing mass-marketed games through to site developers and ISPs.