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In 1997, Steven Haase, a former insurance broker and senior vice president at Hamilton Dorsey Alston Co., worked with AIG to develop the first cyber security liability policy.
The policy is designed for information technology companies that regulate the Internet. However, in the 21st century, digital transformation has forced the Internet industry to adjust.
At the same time, the business of finding love online boomed, eventually leading to the widespread use of dating apps that are now considered the standard way to make romantic connections.
However, this shift has also given rise to new challenges in the field of cybersecurity.
Not your type?
Many insurance brokers are reluctant to source insurance for such platforms rather than seize this market opportunity.
For example, Loughborough University student Abdul Anwar, creator of university dating app Lboro Circle, told sister publication insurance times He had trouble finding insurance for his app, which launched as a beta program in February 2023.
Michael Brunero, head of technology, media and intellectual property (IP) at CFC, explained that insurance brokers may be hesitant to insure dating apps because understanding the “unique risks associated with these apps” often requires “the expertise of a specialist technical broker.” “Professional knowledge”.
For example, to obtain the necessary insurance, Anwar had to take advantage of Biba’s Find Insurance service, launched in April 2012. He was “matched” with LBH Insurance, which insured the application through CFC Underwriting.
“The unique risks associated with these applications” often require “the expertise of a specialized technology broker”
Despite the unease among insurance brokers, the CFC has shown interest in insuring dating apps, saying it has already insured several “now well-known dating apps.”
In 2009, the CFC introduced a social media policy that covers a range of entities, from social networks and social networking sites to media sharing sites, app developers, bloggers and online gaming companies.
However, Brunello acknowledged that insuring dating apps “is not a large part of the company’s technology and media business.”
“We have written some reports [of dating apps] these years, [exceeding 50 instances].
“[However], this category constitutes only a subset of our overall social media portfolio, accounting for approximately 15% of the company’s total portfolio. “
unique risks
Insuring dating apps can also be a “challenging area”, the CFC explains, given the wide range of risks they face from various sources.
For example, geolocation technology plays a key role in determining the true location of a device through the use of Global Positioning System (GPS) and Wi-Fi data.
However, despite its many benefits, its use also raises concerns about privacy and user security. There is a risk of revealing a user’s location, and this information could be used to identify the user’s home address and track their movements.
In a notable incident reported by the BBC on January 19, 2015, cybersecurity experts at Synack discovered a vulnerability in one such application, highlighting the potential risks.
Cyber attackers exploit the ability to reveal a user’s distance and use multiple location-based requests to triangulate a person’s exact location.
Bodily harm caused by conduct on dating app platforms ‘key area’ of coverage
Brunello noted that the leakage of user location information not only poses privacy risks, but also puts “potentially vulnerable” individuals at risk of “physical abuse,” which could lead to personal injury claims.
He cited a 2019 case in the United States in which a person was harassed by an ex-partner who acted as a catfish (a person who creates a deceptive or false image online to establish a relationship with another person). On a dating platform.
Users attempted to file product liability lawsuits against the platform, claiming design flaws and a failure to police users.
Although the app successfully defended itself in this case, Brunello noted that the huge costs of resolving such a new case would be “enormous.”
Brunello added that bodily harm caused by the conduct of dating app platforms is a “key area” of coverage that is often “overlooked” and is not included in the standard coverage of many policies.
Fit for purpose?
Brunello explained that bodily harm caused by dating app platforms is ignored in standard policies because “many policies were written before modern technologies such as dating apps, so they are not fit for purpose”.
For example, errors and omissions (E&O) policies typically cover financial losses, but may not be suitable for dating apps. These apps can be held liable, or at least accused of causing physical harm to people.
“So a good insurance policy for this type of business needs to take into account these new types of risks,” Brunello said.
“Many policies were written before the advent of modern technology such as dating apps, so they are not fit for purpose”
He noted that in cases involving physical injuries related to dating app platforms or other technology services, companies may want to explore “customized” liability insurance that addresses the “unique risks” associated with their industry and services.
For example, CFC’s social media policy includes coverage for bodily injury and property damage, up to the policy limit. Additionally, the policy incorporates a tailor-made policy package to “reduce coverage gaps and overlaps”.
“The exposure of dating apps from all angles has stimulated greater interest in offering package policies. We believe this is crucial to provide tailored intellectual property rights protection,” Brunello said.
This article first appeared in sister publication Insurance Times.
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