clsr_jul_revised2_aug.qxd
23/06/00
15:12
Page 260
E-Insurance
material fact that ought to have been brought to their attention, and by reason of the failure to notify them, then attempt to avoid the policy.
WHAT NEW FORMS OF INSURANCE COVER MAY BE REQUIRED? Although the response of the insurance market to the E-commerce revolution is still in its infancy, three separate approaches can be ascertained:
‘Packaged’ E-commerce Cover There are a number of ‘cyber-liability’ policies available, i.e. policies that claim specifically to cover many of the risks discussed above. There are notable advantages to this, not least the fact that the wordings used will have been directed at the realities of online trading, rather than trying to ‘bend’ traditional concepts to fit in with electronic mediums.
Modular Cover It may be that a company already has satisfactory insurance cover for the majority of its operations and only now requires a limited amount of additional cover, e.g. to cover the risk of system failures, to protect against the specific risks associated with its Web site or in relation to claims arising from the use of E-mail.There are accordingly a number of ‘modular’ products available that allow insured’s to select only those aspects of E-commerce related cover which they think are applicable to them.
Amendments/Addendums to Existing Policies Notwithstanding the immediate attractions of the two types of products mentioned above, in the longer term it will inevitably be necessary for insurers to review their existing policy wordings in relation to most if not all of their product portfolio to check the extent to which they properly address E-risks. Failing to do so runs the risk of losing valuable business to the ‘packaged’ E-commerce insurers mentioned above, even if the majority of the insured’s current exposures are not E-commerce related. There is also a considerable opportunity for an insurer to gain publicity and new business by being able to proclaim it can now offer ‘E-policies’ that fully reflect the revised nature of the businesses and risks of their insured’s.
SUMMARY The rush to embrace E-commerce initially appeared to leave issues of risk management and insurance somewhat behind. However, with the continued stream of high-profile losses and exposures that have resulted from this, the scene is now changing and one can expect a greater volume of demand for E-commerce specific covers and wordings in the future. Kit Burden, Report Correspondent Kit Burden is a partner in Barlow Lyde & Gilbert, specializing in IT and E-commerce matters, and the management and insurance of E-risks in particular. He can be contacted at kbur-
BOOK REVIEW Intellectual Property Law Intellectual Property, 4th Edition, by David I. Bainbridge, 1999, soft-cover, Financial Times — Pitman Publishing, 661 pp., £29.99, ISBN 0 273 63156 X David Bainbridge first published his text on Intellectual Property Law in 1992. Seven years later, the work has reached its fourth edition.This is testimony both to the popularity of the text and the speed with which intellectual property law has developed during the 1990s. In his preface he comments that:“The law of intellectual property has moved on at a quite amazing rate since the third edition of this book was printed, and the fourth edition fully reflects the many new and recent develops in this fascinating field.”The author keeps faith with the original purpose of the book, which was to provide undergraduate students with “an accessible and practical, yet reasonably comprehensive, view of intellectual property law”.The latest edition tracks recent changes in legislation and case law and responds also to developments related to the Internet. Recent international developments, including the implications of the TRIPS Agreement (Trade Related Aspects of Intellectual Property Rights), as well as developments within the European Union, are dealt with.The structure of the book follows previous editions in dealing with intellectual property rights one by one.The book is thoroughly referenced, offering an excellent starting point to anyone interested in studying the law of intellectual property. Available from Addison Wesley Longman, 4th Avenue, Harlow, Essex, CM19 5AA; Tel: +44 (0)1279 623928; E-mail:
[email protected].
260