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InsureCast
a division of Gaston & Associates, Inc. 
Technology Insurance
Loss Scenarios for IT Firms
  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 to correctly apply the hourly and overtime rate of pay. The failure results in over/underpaying employees. The customer sues the provider of the hardware and software.
Indemnity Paid: $440,000
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The Cost of Litigation

 

The cost of litigation to information and network technology companies has risen dramatically in recent years as a result of product and service disputes. Why are we seeing this sudden influx of lawsuits?

More and more customers are willing to sue long established business partners for performance failure problems. The result: an increase in business partner litigation.

Dramatic increases in the average size and length of contracts raises the plaintiff's chance that a performance failure “will be worth the fight” and result in a large jury award.

As market competition continues to increase, there is a greater chance that marketing and sales pressure will invite over-promising of supplier capabilities.

With companies putting more reliance on information technology solutions, it increases the likelihood that software solutions will be core business solutions. As a result, much more is it at stake if the solution fails or doesn't perform as promised.

Today companies are crossing borders to conduct business which brings a host of new exposures due to foreign laws and regulations.

Information and network technology companies need timely solutions that have evolved with their industry and the new exposures being presented. Chubb's information and network technology errors & omissions (E&O) insurance offers such solutions and can help protect your firm from the devastation of a lawsuit.

InsureCast specializes in risk management alternatives for technology companies. Take a look at these loss scenarios and then ask whether you have the proper insurance protection.

 

Litigious Awareness

Liability insurance for the errors, omissions, and other wrongful acts of directors and officers has been available since the early 1960’s. Since that time, the increase in public awareness and expectations, and the more litigious nature of society, have resulted in a virtual explosion of litigation against corporate managers as well as judicial analysis of the conduct and standards applicable to Directors & Officers. The result is that Directors & Officers are frequently being “second guessed” by the courts.

 
 
 

Available Technology Insurance Coverages

 

Cyberspace Internet Liability Insurance

Cyberspace Internet Liability addresses the first- and third-party risks associated with e-business, the Internet, networks and informational assets. Cyberspace Internet Liability Insurance coverage offers cutting edge protection for exposures arising out of Internet communications. More...
 
 

Directors and Officers Liability Insurance

Directors and Officers Liability Insurance is usually required by a board of directors to protect them in the event they are sued in conjunction with their duties as they relate to the company. More…

 
 

Employment Practices Liability Insurance

Employment Practices Liability Insurance protects employers against claims made by employees for discrimination (age, sex, race, disability), wrongful termination, and sexual harassment. More…

 
 

Fidelity/Crime Insurance

Fidelity/Crime Insurance insurance protects organizations from loss of money, securities, or inventory resulting from crime. More…
 
 

Fiduciary Liability Insurance

Pays, on behalf of the insured, legal liability arising from claims for alleged failure to prudently act within the meaning of the Pension Reform Act of 1974. More…
 
 

Group Personal Excess Liability

Group Personal Excess Liability is a comprehensive benefit for key personnel, managers, and employees. It provides up to $10,000,000 personal liability coverage for each employee in a defined group. More…
 
 

Intellectual Property Insurance

Intellectual Property coverage protects companies for copyright, trademark or patent infringement claims arising out of the company's operation. It pays the defense costs and any judgment up to the policy limits. More…
 
 

Key Person Life Insurance

This coverage is designed to protect your business upon the loss of a key employee. The tax-free proceeds from this policy can be used to find, hire and train a replacement, compensate for lost business during the transition, or finance any number of timely business transactions. More…
 
 

Kidnap/Ransom and Extortion Insurance

Kidnap/Ransom and Extortion insurance provides numerous benefits and services to the applicant and the insured. Kidnap/Ransom & Extortion Insurance provides coverage for kidnappings and other events through a combination of financial indemnification and expert crisis management. More…
 
 

Media Liability Insurance

Media Liability Insurance protects you against claims arising out of the gathering and communication of information. Media Liability Insurance provides very valuable coverage against defamation and invasion of privacy claims as well as copyright and/or Trademark infringement. More…
 
 

Network Security Insurance

Internet Security insurance coverage protects you from losses associated with unauthorized access to or theft of your data or e-business activities, computer viruses, denial of service attacks, as well as alleged unauthorized e-commerce transactions. More…
 
 

Professional Liability Insurance(E&O)

Professional Liability Insurance (E&O) protects your company from claims if your client holds you responsible for programming errors, software performance, or the failure of your work to perform as promised in your contract. More…

 
 

Workplace Violence Insurance

Workplace Violence coverage is protection against the expenses that a company can face resulting from incidences of workplace violence, including the cost to hire independent security consultants and public relations experts, as well as payment of death benefits and business interruption expenses. More…
 
 
News & Articles
Multiple Places, Multiple Policies
Insurance Is Our Native Language
No Policy Covers Everything
Reality of Lawsuits
New Public Company Rules Hit Private Firms
But I Want to Fight, Not Settle Out of Court!
Professional liability insurance for IT Staffing Firms
Terrorism Insurance Finally Arrives
Business Risk Management Tips
Are You an Equal Opportunity Employer?
Lawsuit Costs
Privacy Disclosure Rules
Expanding Exclusions and Limitations
Is Your PR Hurting Your E and O?
Is Professional Liability Insurance needed?
Sufficient Limits Are Key
Overview and Current D and O Market Trends
Insurance Market Overview
Directors and Officers/EPL Market
Why IT Firms need EO?
If Disaster Strikes (PDF)
Why Private Firms should have D and O? (PDF)
Insurance Solutions for Private Companies (PDF)
 
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