The word cyberspace refers to the Internet as a virtual location where all kinds of relationships are created and maintained. This includes ones created between businesses, their customers and other businesses. In particular, businesses need to be careful about what they put online in order to avoid what is known as cyber liability. The virtual world of the Internet does not alleviate a business of liability issues just because there is no actual physical location. There are laws that still apply, and proper online management is necessary to avoid legal problems.
One such issue is known as media risk. Many website owners try to operate under the innkeeper’s law, wherein the owner of the site is not responsible for what is placed on their site by others. When the information is put up on the site knowingly, it can become actionable by an offended party. Due diligence needs to be enforced when it comes to putting content on a website to avoid media risk.
Another issue is known as system risk. This is when a site has malicious code placed on it by a third party and impacts users in a negative way. In the event that users are denied access to a system or database due to a number of reasons, users can turn around and sue the site owner for not properly protecting their information.
Chivaroli and Associates Insurance Services is a full-service brokerage firm specializing in the custom-design and placement of insurance and alternative risk funding solutions for your healthcare organization.