In April 2002 a German railway sued Google for linking to a Web site that provided instructions for sabotaging rail systems. The case has been bogged down in jurisdictional disputes, but a growing number of similar lawsuits are awakening U.S. businesses to the perils of putting information online.

Although there have been no significant monetary awards for damages, the insurance industry has been quick to seize upon the opportunity. Chubb, AIG, and the St. Paul Companies are among the first to introduce special "Internet liability" policies designed to help clients pay settlements or damages if they're sued for posting or linking to material that infringes copyrights, is defamatory, or violates privacy rights. "Companies may not be considering the fact that there is a liability they are carrying just by including links to other people's Web sites," says Bill Rohde, president of global technology underwriting at the St. Paul Companies.