Insurance for Ecommerce Sites: Insuring Against Fraud, Data Breaches

[mandy]

A few insurance companies provide policies for credit card fraud and data breaches, covering both a merchant's hard cost of fraudulent sales and any liability for data breaches. AIG, the publicly-traded insurance company, was one of the first.

AIG has offered Web Merchant Guard since 2001, a policy "designed for merchants that take card-not-present transactions and looking for catastrophic protection from online fraud," says Mark Camillo, AVP for AIG's Identity Theft and Fraud Group. "It's not something that's going to pay for the first dollar of loss, but it will pay for fraud that exceeds your normal level."

The annual deductible for Web Merchant Guard is typically around 1 percent of a merchant's total sales, with premiums of several thousand dollars per year. Three to six other insurance companies offer similar coverage...

full article: http://www.practicalecommerce.com/articl...-Breaches/