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.