ASP Industry Consortium Unveils Insurance Program for ASPs; First Offering Tailored to ASPs, Enhancing Consumer Confidence in Model.
WAKEFIELD, Mass.--(BUSINESS WIRE)--July 24, 2001
The ASP Industry Consortium today announced the availability of a new insurance program designed specifically for application service providers (ASPs). The program, developed in conjunction with InsureHiTech, a premier insurance brokerage for New Economy companies, provides comprehensive protection against the risks inherent in Web-based enterprise. Coverage is provided through AIG netAdvantage(SM), a product suite from American International Group, Inc. (AIG), the leading U.S.-based international insurance organization. Developed in conjunction with the ASP Industry Consortium, the coverage is available to any application service provider, though ASPIC members will receive a significant discount as a benefit of membership.
"This new insurance program is an extraordinarily valuable benefit for our members - one that fills an important need for them, as well as their customers," noted Paula Hunter, chairman of the ASP Industry Consortium. "It provides ASPs with access to comprehensive protection against any of the risks to which they could be exposed in the course of their business. At the same time, it gives ASP customers an added measure of security that should enhance confidence in the ASP delivery model and ultimately accelerate its adoption."
"As insurance specialists for technology industries, we understand the issues that ASP's face in providing a comfort level to their clients. Working with AIG to tailor the best solutions for the association made this a truly compelling offer to the membership. We look forward to serving the association and being a valuable business resource for their constituency," explained Rick Maloy, CEO and President of InsureHiTech.
The coverage provided by AIG netAdvantage addresses virtually all of the potential risks faced by an ASP. It includes:
-- Media liability coverage: Protection against liability arising from Web content, such as libel, slander, invasion of privacy, and copyright or trademark infringement.
-- Professional liability (Errors and omissions): Protection against wrongful acts committed in the performance or non-performance of Internet, professional or technology-related services.
-- Security liability: Protection against computer attack, unauthorized access, unauthorized use or malicious code.
-- Extortion coverage: Protection against threats to commit an intentional computer attack or other security breach for financial gain.
-- Asset and income protection: Protection of an ASP's data assets and business income in the event of a covered security breach.
-- Criminal reward fund: Reward monies up to $50,000 for information leading to the arrest and conviction of a cyber criminal.
-- Crisis management fund: Coverage of up to $50,000 in public relations expenses relating to a claim covered under the policy.
Participants will have two coverage options, one designed to complement any existing Errors and Omissions coverage and which includes Errors and Omissions coverage. Premiums will be determined by several factors, including the size of the ASP's assets, its existing security measures, its technology, and its policy limits and deductible. Policy limits will range from $1 million to $25 million, with policy deductibles starting at $50,000.
"Recent ASP customer interviews indicate that data security and backup contingency plans are among their top concerns," said Meredith Whalen, Vice President, ASP, Internet and Consulting Services Research for analyst firm IDC. "ASP insurance could be the necessary catalyst to transform the potential end user into a loyal customer."
In addition to offering discounted liability insurance to members, the ASP Industry Consortium plans additional insurance-related initiatives. These initiatives include:
-- Sponsorship of annual ASP security seminars that will include an insurance component and feature panel participation by InsureHiTech and/or AIG.
-- Periodic publication of white papers and insurance-related articles within the Consortium web site or member newsletter
AIG is the leading U.S.-based international insurance organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write property, casualty, marine, life and financial lines insurance in approximately 130 countries and jurisdictions, and are engaged in a range of financial services and investment management businesses. The company's AIG netAdvantage Suite(SM) encompasses a range of products providing varying degrees of coverage for companies that do business via the Internet. More information about AIG netAdvantage is available at www.aignetadvantage.com.
Headquartered in Princeton, N.J., InsureHiTech is niche insurance brokerage that designed a unified web based operating platform to handle insurance transaction processing between their clients and insurance carrier partners. It is licensed in 49 states and Washington, D.C., and is the premier insurance brokerage for New Economy companies. InsureHiTech offers 30 types of coverage and works with many of the top insurance carriers in the industry. Its Web address is www.insurehitech.com.
About the ASP Industry Consortium
The ASP Industry Consortium is the global advocacy group formed to promote the application service provider industry. Its goals include educating the marketplace, promoting best practices and developing common definitions for the industry, as well as serving as a forum for discussion and sponsoring research. Among the technology sectors represented among its membership are Independent Software Vendors (ISVs), Network Service Providers (NSPs), telecommunications companies, infrastructure providers, Application Service Providers (ASPs) and other sectors supporting the industry. Since its founding by 25 leading technology companies in May 1999, more than 600 member companies in 33 countries have joined the ASP Industry Consortium. Information on the ASP Industry Consortium - including a full list of member companies - is available at www.allaboutasp.org or by contacting the Consortium's headquarters at: ASP Industry Consortium, Inc., 401 Edgewater Place, Suite 500, Wakefield, Mass. 01880; Tel: 781-246-9321; Fax: 781-224-1239; e-mail: firstname.lastname@example.org.
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|Date:||Jul 24, 2001|
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