spider in the Web...or how not to get snared using the Internet, The

Rough Notes, Oct 1996 by Kowatch, Diana L

REAL-WORLD EXPERIENCES WITH CYBER-BUSINESS

In the April issue we asked our readers to let us know about coverage, risk management, and an other insurance-related concerns that they or their customer.have experienced as a result pf using the Internet. We have had some interesting responses which form the basis for this, the second, article in our series on avoiding some of the snares of the World Wide Web.

A new wave of consultantsDo they need professional liability?

As more and more Web sites are opened and home pages are offered, a new wave of "consultants" has arisen. Most people like to see their names in the public eye or to share their thoughts and opinions with anyone who will listen. On the Internet, this can be done on a worldwide basis. Many entrants to this Web of information and technology will not only offer their advice and opinions but would be happy to discuss their particular interest over transmission lines with you "real time." These "experts" appear more than happy to chat with you and "publish" findings or results on their home pages and Web sites.

This new breed of "consultants" will give opinions and advice on everything from the type of hardware and/or software you need for your system to how to build a home page or Web site (and how to do it inexpensively and effectively). But it doesn't stop there; it is not limited to issues of automation. No sector of the business world is untouched, including the insurance industry.

There are now sites that will promise to give you premium quotations for personal auto, homeowners, and small business coverages after you have answered just a few simple, fillin-the-blank questions. You can obtain advice on what coverage(s) you need, how to cut the cost of your insurance program, how to eliminate the need for coverage, how to receive the best handling of a claim, and so on. Products offered by insurers are being discussed and evaluated, and information is being disseminated. As a result, a venue has been created where just about anyone with a computer and modem can do more than just access information. One can also place any information, opinion, or advice that he or she wishes to into the Web arena. The creators of these sites can use technology such as desktop publishing to give the sites a highly professional appearance.

Should a user of the Internet encounter a professional appearing Web site which advises that "client" on insurance needs, and that "client" purchases the recommended coverage based upon reliance on the information provided in that Web site, there may be a consultant or professional errors and omissions exposure. The greatest concern expressed by our responding readers is that advice and information on critical insurance issues is being given without a careful and thorough analysis of the needs, hazards, and exposures of the client. Often, little more than a name and e-mail address is asked for.

As more and more legal suits are underway regarding the Internet and its content, decisions continue to emerge regarding what is an editorial comment and what is a professional service. Editorial comments are little more than opinions expressed by parties that have either some interest or some background in the topic discussed, but these comments are not necessarily a relevant professional opinion.

A professional service, on the other hand, is normally considered to be guidance or consultation offered (usually for a fee) by a professional with experience, knowledge and background in the topic. A professional service is normally associated with training, education and, in many cases, licensing. In the meantime, these new "consultants" may be placing themselves in precarious situations and may be opening themselves up to all types of professional liability or errors and omissions claims and suits.

Patent or copyright infringement, slander, libel, personal injury. . .

If a Web site has information regarding a copyrighted coverage or product program, or uses an insurance company logo on its Web site, have all the proper permissions been obtained? If not, there is a possibility of patent or copyright infringement. Should the information provided in the site refer to a specific insurer's product or coverage, the possibility of slander or personal injury exists if it is not factual or if it is incorrect or unverified.

What if personal information or circumstances are shared at a Web site to obtain advice or to let off steam in a chat room, and that personal information is then shared by the site owner with others or is reused without permission. Could slander be involved? What happens when one Web site links without permission to another site containing information or product? Is this a patent or copyright violation?

One interesting example revolves around a site that was offering research and specific information for a minimal dollar amount per hit, but the actual response was obtained by linking to another entity's site containing copyrighted, for-fee information, without the second entity's permission. The second entity is in the middle of legal action to obtain compensation from the first entity for the unauthorized use of product and for copyright violation. Just because the technology exists to link to another site, doesn't mean that the right exists to do so.