3173, held that the loss of a computer tape containing stored data was a physical injury to tangible property. The court found that the information on the tape was permanent and fully integrated into the tape. Of course, the loss of a tape is different than the loss of the data on a tape or disk. There are no cases that specifically address that issue. The next step for most companies is to minimize and transfer those risks.
Most insurance companies are aware of the potential of providing e-commerce insurance.
Currently, there are a few insurance companies willing to underwrite corporate Net liability policies. One policy currently available is InsureSite. It is a policy designed to cover some of the liability exposures that arise from conducting business on the Net. The credit card coverage includes the loss of money or electronic funds from credit card use over the Net. The personal injury coverage protects against slander, libel and defamation of character.