they now face a whole new area of liability that may not be covered by their traditional insurance policies.

This was one of the key themes at this year's Risk and Insurance Management Society (RIMS) conference, where some 10,000 risk managers and insurance executives gathered last week to meet and attend industry seminars.

Other hot topics included speculation about further consolidation in the insurance brokerage industry, employment practices liability and political risk insurance.

But the issue of Internet liability clearly dominated the conference, which held at least five separate seminars on the subject.

Indeed, Price Waterhouse surveyed risk managers at the conference and found that 52 percent were increasingly concerned about computer security.

The problem affects not just online service providers, but just about anyone who uses the Internet, experts at the conference said.

Companies that create Web pages may now be considered advertisers or publishers and may face charges of copyright or trademark infringement for material posted on the site, especially by third parties.

For instance, an electronic publisher may post graphics on its Web site created by a free-lance artist, only to later find it has infringed on the copyright works of a prominent foreign illustrator, Dominic Davison-Jenkins, vice president of risk consulting for London-based insurance broker Minet, said at the conference.

Another company may have to pay damages if an employee downloads copyrighted games and then tells others how to access and play them, Wiliam Payton, director of risk and insurance management at the University of Missouri, told another group at the conference.

The issue is further complicated because of the global nature of the Internet, which creates exposure to foreign laws and, therefore, cross-border liability, Davison-Jenkins said.

In addition, in an electronic environment it can be unclear where a commercial transaction takes place, he said.

Companies also may face charges of defamation, negligent misrepresentations and invasion of privacy.

Internet liability in RIMS spotlight That is according to Jay Brown, claims counsel for Employers Casualty Co., a unit of General Electric Co.'s Employers Re Corp.

For example, he said, an online service offering "how-to'' tips that turn out wrong may face some liability for negligent misrepresentations.

But some insurers are already working to provide coverage for these new liabilities.

An Atlanta broker, Hamilton Dorsey, created a new Internet insurance policy that was unveiled at the conference and will be underwritten by members of American International Group Inc.

International Business Machines Corp. said it was working with Chubb Corp., Reliance National and Danish insurer Codan as a consultant to provide technical expertise on the creation of new Internet insurance products.