AIG offers Internet insurance

Insurance firm, AIG Europe has launched an insurance policy covering firms against cyberfraud and Internet losses.

The package covers email content and protects against financial losses resulting from viruses, Web site failure and hacking. It also offers protection against Internet-related lawsuits.

Nick Lockett, solicitor at Sidley & Austin, said: "It shows people are taking ecommerce and the Internet seriously." AIG joins several other companies, including Royal & SunAlliance and Lloyds in offering cyberpolicies.

Lockett said: "There are many more companies in the pipeline with similar services. The amount of commerce being carried out is serious, especially business-to-business. There is more (business being conducted over the Web] than people realise, and this will very soon carry over to the business-to-consumer sector. But the risk does exist from things like viruses, hackers, connectivity failures, and it is obvious to insure against them."

Lockett added: "It will become a fairly defined market, but at the moment, the insurers are struggling to find the right package because they are written when the risks are not fully understood. Consequently, insurance policies are very good value at the moment, but as soon as the risks are better understood, prices will go up and competition will increase."

For more information, contact AIG at http://www.aigeurope.com