TekDivision
Is your client ready for the unexpected?
People don't usually believe they need coverage, until it's too late. Look at these loss scenarios and then ask whether your clients have the proper insurance protection.
Corrupted Data
A communications company sues for lost revenue and expenses to recover billing files for wireless customers that were deleted by their software vendor who was updating the system.
Indemnity paid: $750,000 : Defense Costs Paid: $150,000
Software fails to maintain employee hours
A company provides timekeeping hardware and software to its customer. The software doesn’t function correctly; it fails to maintain employee hours worked and correctly apply the hourly and overtime rate of pay. The failure results in over/underpaying employees and the need to replace the timekeeping clocks. The customer sues the provider of the hardware and software.
Indemnity Paid: $440,000
Missed deadlines cause a breach of contract
A firm outsources to an information technology and management services company for the replacement of hardware, software and infrastructure as well as telecommunications and related services in order to upgrade its ability to serve customers and address any problems. The information technology and management services firm fails to meet deadlines due to a high turnover of staff and a breakdown of project management.
Indemnity Reserve: $2,000,000 : Expense paid: $500,000
Lawsuit in France
A software developer is dues in French courts for failing to deliver and operation version of a software system. The plaintiff alleges that the system sold and installed was not compatible with its mainframe systems, despite assurances to the contrary. The plaintiff sues for recovery of consequential damages
Indemnity Paid: $600,000
Breach of security
A telecommunications firm is sued by customers claiming they were sold a defective system with inadequate security protections. The customers claim the faulty system allowed individuals to access their phone system and, as a result, they incurred fraudulent overseas charges.
Indemnity Paid: $345,000
Defending software that performed as promised
A software company was sued by a customer after he used the company’s cost estimating software. The software itself was found to have functioned perfectly. The error was on the part of the user who later underbid a work project. The customer eventually dropped the case, but only after considerable legal expenses were incurred by the software company.
Indemnity paid: $0 : Defense Costs Paid: $175,000
Inability to deliver on marketing “promises”
A personal computer assembler is sued by a group of consumers in a class action suit. The suit alleges that the company’s equipment did not live up to advertised specifications. Citing issues such as lack of speed and poor upgrade capability, the consumers demand full refunds.
Indemnity paid: $1,600,000
Jury award for compensatory damages
When a software solutions provider fails to live up to the performance commitments made via a contract for a new software system, a local jury awards the plaintiff in excess of $2 million in compensatory damages
Indemnity Paid: $2,400,000 : Defense costs Paid: $350,000
Million dollar verdicts and costly legal fees can easily destroy a firm’s bottom line… if it’s not properly protected. Talk to your Stuckey representative about our information and network technology errors & omission insurance. Make sure your clients get the protection they need now.
