Don't get caught in a legal web

A recent survey by ClickforCover, a new e-insurance specialist, claims that just under half of businesses have no idea of their legal liability in relation to their use of e-mail and the internet.

Companies, says the insurer, are beginning to realise that cyber protection has to go much further than installing firewalls and anti-virus programs. Organisations can be covered against risks such as the legal costs of e-related disputes or business interruption caused by an internet virus.

A business is responsible for libellous or defamatory remarks made by its employees via e-mail. ClickforCover advises that businesses have a clearly defined policy for the use of e-mail and the internet to establish parameters for it use and explain to staff the company's liabilities in this area. You should also spell out your policy on e-mail attachments, too, for this is the most common way for viruses to enter a network, according to anti-virus software companies.

It's particularly important to monitor the type of information that employees have access to or circulate. Offensive information can lead to action from employees alleging an inappropriate workplace, sexual harassment charges due to disturbing e-mail content, or breaches of employees' confidentiality or rights of privacy, reports ClickforCover.

David Walsh, managing director of ClickforCover, says: "Claims of defamation, breach of confidentiality or contract have arisen from a misuse of the system, yet relatively few companies have introduced codes-of-practice, legal disclaimers or warnings."

If your company has a website, adds the insurer, you should police the way that bulletin boards are used in the same way as e-mail. Any defamatory messages posted on bulletin boards by customers or visitors to your website can leave your company exposed to e-mail libel laws, just as company e-mails can.

With some know how, data can be corrupted or confidential information passed into the wrong hands quickly and easily. It pays to be extra vigilant as to who has access to information at times of dismissal, advises ClickforCover.

Walsh warns: "Senior managers have got to wake up to the risks to which their companies are exposed and take appropriate action to minimise the impact."