BMC Joins with on ASP Insurance

SAN MATEO (05/24/2000) - Looking to enable ASPs (application service providers) to offer greater performance assurances, BMC Software Inc. and LLC on Wednesday are unveiling an insurance program for Internet-related damages.

Under the program, which is customized for ASPs using BMC's Patrol management software, will underwrite damages related to either outside lawsuits resulting from denial of service attacks or against internal losses suffered by the ASP itself in these attacks, according to Steven H. Haase, CEO of

For example, ASPs could be covered against losses suffered by a brokerage house customer who lost money as a result of down time.

ASPs that have been certified through BMC's OnSite performance management program can purchase's "e-vailability" insurance, called the Assuretrust Contractual Obligation policy, at what is likely to be a reduced rate than if they had not gone through BMC's certification, Haase said.'s own underwriting and technical requirements also must be met.

A typical premium from is $10,000 for a $1 million damage limit on a small company, according to Haase.

Qualified ASPs will be able to broaden their commitments to service-level agreements via warranties to customers, according to the two companies.

"ASPs can make a stronger promise to their customers that [ASPs] can take responsibility," said Wayne Morris, vice president of corporate marketing at BMC.

"It's a tough choice for customers which ASP do [they] go with. This adds confidence in their choice," Morris said.

The Assuretrust Contractual Obligation program is available immediately. purchases some of its reinsurance, which is insurance for insurers, from the Lloyd's of London insurance company.

BMC Software Inc., of Houston, is at LLC, of Atlanta, is at

Paul Krill is an InfoWorld associate news editor.

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