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Ask Shawn Collins: Affiliate Insurance

August 19, 2006 by Shawn Collins

Is there insurance I should take out as an affiliate? I have heard of Cyber Liability insurance, but I am having difficulty getting information on it.

Let me preface this by saying IANAL (I am not a lawyer), nor am I an insurance professional. Your should consult with a lawyer and insurance agent about the best options to limit your company’s liability.

That said, I have never heard of Cyber Liability insurance. I searched around a bit and found a handful of articles on the subject, but they were mostly from 2000 or so.

I found a definition for the term in Google Answers:

“Generic term coined in the late 1990s for various types of legal liability arising from business use of the Internet and e-mail including cyberlibel (q.v.), copyright infringement, breach of confidence, negligent virus transmission, inadvertent contracts, computer hacking, etc.”

Personally, I carry a professional liability insurance policy, but I really couldn’t tell you if it is necessary or useful in my affiliate relationships. I have the insurance for client relationships.

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