It's not that Open Source software is ultimately too risky to use without some sort of insurance. It's about giving Open Source software companies, like Linux, the right backing should any legal entanglements arise resulting in expensive claims.

Daniel Egger, the founding chairman of Open Source Risk Management (OSRM) said in a recent press release that Linux property insurance is about providing a united defense against those trying to profit from a legal system that permits frivolous but expensive claims."

OSRM joins the ranks of HP and Novell and Red Hat in providing Linux property insurance program. The OSRM Linux property insurance protects large and small users from legal hassles which arise from using the open-source operating system.

How did they come up with their Linux property insurance policy?

By spending six months on thorough assessments of the files in the Linux kernel, OSRM found that there are no copyright infringements in versions 2.4 and 2.6 of the operating system. This in turn led them to the idea of creating another Linux property insurance policy which is specified to cover this weakness.

"We decided to go straight to the heart of the matter and evaluate whether we could defend the Linux kernel," Egger explained when asked how he came up with the idea of the Linux property insurance.

Linux property insurance is designed to afford OSRM clients the legal protection they need. This legal protection provided by Linux property insurance is "equal to, if not beyond," what clients receive with proprietary software licenses.

The benefits of OSRM Linux property insurance

With the OSRM Linux property insurance, users do not need to be tied down to one particular Linux vendor. The Linux property insurance coverage provided by OSRM is unlimited. Businesses can purchase as much Linux property insurance coverage as they want. The rate of Linux property insurance is comparable to that found in other insurance policies that cover intellectual-property lawsuits. Purchase price of OSRM Linux property insurance is only about 3% of the total coverage amount.

Also coming up in OSRM Linux property insurance is a legal defense center where users can take advantage of the legal assistance on matters relating to Linux. The legal fees involved in Linux property insurance range from $250 to $100,000 for corporations.

How OSRM Linux property insurance is different from the rest

A typical insurance policy differs from that of an OSRM Linux property insurance indemnification program. According to OSRM, he reason why Linux property insurance is different is that it "works with clients to assess and mitigate their risks, and then helps implement a set of best practices for mitigating legal risks around their use of Open Source."

In addition, instead of paying for a client's lawyers, OSRM can hire and provide lawyers for their own clients through the Linux property insurance program.

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