Do I need insurance for my web business?
July 12, 2009 10:47 PM Subscribe
Do I need to insure my web business? I am setting up a to-do list + calendar web application that holds users' data. Do I need to insure against data loss, or down time? Or can I put all that in a EULA (e.g., [web application] will not be responsible for any data loss, down time, data corruption etc)?
posted by tomargue to technology (7 answers total)
I plan to speak to a lawyer in about two months time about all the legal requirements prior to my web application "going live", but I want to get a bit of a feel of the risks associated before speaking to a lawyer and forking over $1000s or more.
If I do need insurance for my web app, what's the best way of finding insurance? (I've never looked at finding insurance before...my housemates have always taken care of home and contents insurance, and I've never owned a car). If insurance does exist for data loss etc, what's the ball-park figure on how much such a scheme would cost? Would I need to go with an multinational insurer, since the site will be available world-wide? Or would a small local insurer do (I live in Melbourne, Australia)? Or can I simply have an End User License Agreement and make my users agree not to sue me if I accidently lose their data. I know, even to this day, that Hotmail deletes user accounts if left idle for a few months....