An underwriting group affiliated with Lloyd’s and other leading insurers announced this month the launch of a new product designed to protect Canadian businesses against anti-spamming exposures.
Trinity Underwriting Managers Ltd. is working with insurance carriers to offer coverage for costs and fines arising from anti-spamming legislation, which in some cases can amount to as much as $10 million.
The policy launch is well-timed—just last month, a Quebec firm was fined more than $1 million for sending out spam. Since July 2, 2014, the CRTC has investigated thousands of similar spamming complaints.
Trinity Underwriting says it considers anti-spamming risk to fall in the errors and omissions category.
“Most Canadian companies do not send out spam,” said Trinity President Mike McLachlan. “However, their servers can be hijacked by others who use them to spam, or perhaps they inadvertently send out a letter to a client who has asked to be taken off the mailing list.”
McLachlan added that Trinity’s product is not intended to insure companies who deliberately violate anti-spamming regulations.
“Obviously we will not insure companies that are deliberating sending out thousands of spam emails,” he said. “But for companies that run afoul of the CRTC through no fault of their own, we’re able to help.”
