Striving to pinpoint web-based risk

As recently as two years ago, most carriers that explored theintroduction of products and services to cover Internet-based risks faced arude awakening: The coverage was extremely difficult to underwrite, andeven if that hurdle were overcome, it was regarded as difficult to sell.New York City-based American International Group Inc., an internationalinsurance organization whose member companies write property, casualty,marine, life and financial lines insurance, has adopted both a creative andunorthodox approach to break through the morass of difficulty that definese-commerce risk insurance.

In January, AIG introduced a suite of liability insurance products forcompanies that do business on the Internet. Available at premiums thatstart as low as $2,000 a year, the program, called netAdvantage, has fourspecific components tailored for different types of risk exposure:netAdvantage Pro addresses media, content-based injury suffered by a thirdparty; netAdvantage Pro+ is targeted toward Internet service providers tocover computer virus transmission, unauthorized use, loss of service andother perils; netAdvantage Security is third-party liability for risksoriginating from malfunction of an insured's Internet and computer securitysystem; and netAdvantage Security+ is first-party coverage for eBusinessinterruption.