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What is your website worth, what would it cost to replace if the worst happened?

These questions rarely seem to be asked by with regard to small semi professional sites.

Whilst it is possible to insure business sites under umbrella policies, it is very difficult to insure a small media site for example.

I have not found any insurers who deal specifically with this kind of insurance, but would be intereseted to hear from anyone that has.

The fact that insurance for websites is not widely available is understandable, valuing and setting a premium for a website would be a nightmare.

  • Revenu’s are un predictable
  • Fraud is a definate possibility
  • What exactly are you insuring?

Information is difficult to value due to its abstract nature, what is your content really worth?

Furthermore, there is the fact that it is extremely unlikely you would lose the whole site, most servers backup and fail over as a matter of routine, and the worst disasters can usually be recovered.

So, what you would really be covering for is loss of revenue during down-time. Depending on the length of downtime, you may lose regular visitors which is another cost (I would like to see someone come up with a metric for that one!).

Another aspect of concern to media sites is the risk of law suit, Google and youTube being the ultimate example!

However it is relatively easy for small sites to fall foul of copyright law and most bloggers sail close to the wind in this respect, recycling and quoting relevant articles. Again, the potential cost of this is impossible to predict.

Furthermore, it is impossible for insurance companies to ascertain the reliability of the insuree, will they manage their data and content responsibly, or are they a bit of a wild card?

It will be interesting to see if there is any growth in this area, but personally, I doubt it!

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    2 Comments

    Comment by Jon Lee

    Haha, wow did you come up with that idea yourself? Its very original… I agree with you though, I doubt there will be any growth in this area due to how fluid and often distant the internet community is.

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    Comment by SiteLogic

    Yeah, I think so :-)

    For larger sites its easy enough to cover sites under a business policy, but there are a lot of smaller online only companies for whom its not that easy.

    TBH if you backup accross different locations there is not much risk of losing everything. The main risk I should have mentioned and didn’t is getting hacked!!

    I think Ill edit the post to include a bit on that.

    I love quoting the story of playboy.com getting hacked and their users being mailed their credit card details with a note telling them they were circulating the criminal underworld, I’m sure you’ve heard that one given some of your other comments!

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