First-ever Open Source Compliance Insurance
Kiln plc of London, U.K., a Lloyd's of London underwriter and Miller Insurance Services Limited (Miller) a Lloyd's broker, announced today that they will offer a new product called Open Source Compliance Insurance. Open Source Compliance Insurance is the world's first insurance policy to cover the specialized risks faced by enterprises that include or rely upon elements of Linux and other open source software in their commercial products or internal IT infrastructure.
Open Source Compliance Insurance will initially offer cover of up to $10 million for direct loss suffered by the insured following a finding of non-compliance with specific license agreements under which open source code is obtainable. The insurance will indemnify the insured for the loss of profits associated with the withdrawal or alteration of a product incorporating non-compliant code or the impaired valuation of an acquisition agreement exchanging open source software. In certain circumstances the policy would pay the costs to mitigate such losses including the expense of repair or replacement of code that is found to infringe upon the General Public License (GPL) or other Open Source licenses. This pioneering product was developed as part of a three way collaboration between Miller (the broker), Kiln (underwriter) and Open Source Risk Management (OSRM) of New York, which will act as the exclusive worldwide risk-assessor and advisor under the facility.