Security consultancy Counterpane Internet Security is offering its customers savings of 20 to 40 per cent on insurance against network security breaches, it announced yesterday.

The company has launched two policies, covering e-commerce and Internet security, that are backed by the insurance market of Lloyd's of London.

The Internet Asset and Income Protection Coverage policy provides insurance for loss of data, including customer lists and credit-card records resulting from a breach of security or technology failure. The Internet Asset and Income Protection Warranty Plan allows Counterpane's customers to extend the same guarantee to their customers in turn.

The premiums depend on the company's revenue and the level of risk involved, taking into account security infrastructure, procedures, industry hazard and scope of operation.

Coverage is arranged through RK Harrison Insurance Brokers, who are accredited to place risk on the Lloyd’s insurance market.