Cyber Risk Insurance?

a little lethargic asks: "I work at a medium sized business (20-25 computer users, out of house web server, in-house Win2k profiles and file server, ADSL connection, firewalled, nightly tape backup - a pretty standard small business-type setup). Our insurance company's 'Technology Risk Group' is trying to get us to purchase 'Cyber Risk Insurance'. The minimum premium for their policies begins at Cd$3500. Management wants to know if we should consider this or not. Has anyone on Slashdot dealt with similar insurance issues and might they have experience or insight to share?" "Here's the pitch, in their words:

New risks have emerged as corporations rely more heavily on information networks and the internet to improve their competitive position, efficiency and quality of service. Corporate governance mandates that principal risks be identified and appropriately managed and senior management be held accountable for the systems put into place to address and mitigate their risks.

A few examples of these risks include:

- Third party lawsuits as a result of a privacy breach and a release of personal or confidential information including identity theft
- Copyright and trademark infringement claims stemming from corporate web sites
- Business interruption as a result of a security breach, virus or network interruption
- Breach of corporate network security policies by an employee..."

Would you spend money obtaining such an insurance policy for your company?