Online Safety - Cyber insurance

It only took a few seconds for Shellie Hale's words to cost her thousands of dollars.

Hale, who calls herself a citizen journalist, is a blogger in Bellevue, Washington.

A porn company took exception to some comments Hale had written in her blog and they brought legal action against her.

She doesn't want to talk too much about the details - the case is still going through the courts - however, she says that without her cyber insurance, her legal bills would be piling up.

"What it does help me with is paying for my defense, which is taking off a big burden," said Hale.

Some cyber insurance policies cover slander and libel, copyright issues and the cost of courtroom proceedings.

For Hale, her cyber insurance was part of her homeowner's coverage - an umbrella policy.

However, other bloggers may buy it with their renter's insurance or as a separate policy.

Portland insurance brokers, Mark Strauss and Darren Gross, say businesses are getting into the act too.

They say cyber insurance could cover businesses from security breaches, help cover the costs of notifying customers in cases where information is hacked and assist with reputation repair, such as a PR hiring a firm to handle the ensuing public relations crisis.

It could also cover E-ransom - when someone holds your Web site hostage and then demands payment in exchange for releasing it.

Luckily for consumers, the costs of cyber insurance are going down as more businesses and bloggers sign up for coverage.

Hale says hers is about $200 per year and the policy that covers the Web site of her business, is about $2,000 each year.

She recommends that every blogger check into cyber insurance, along with anyone who writes online or has children who post on the Internet.

"I don't believe I was being defamatory, but I have had to spend a lot of money to prove that, so you have to be careful," said Hale.