Why IT and technology companies need this insurance?
Information technology and technological solutions are constantly evolving and occupy an increasingly important role in everyday life. Technological solutions are available to customers that can be used as the key elements for a successful business . If your solutions or services cause an error or fault in the operation of your customers, you have to recover financial losses may be liable.
Normally, upon the occurrence of problems in the business relationship between the client and the provider of technological solutions trying to exhaust all possibilities to correct errors or resolve the situation. If a solution is not possible, Customer’s business is dependent on the implementation of the project, the compensation for the damage caused to the inevitable. Given the fact that subscribers are increasingly dependent on technology solutions are claims for damages are high and can threaten the existence or IT. Technology companies.
As the technology companies vary considerably, both in their business models as well as for services and products, our services are tailored to the needs of each individual customer and our insurance always contain customized solutions.
What is professional liability insurance and information technology companies?
Is a form of insurance and IT technology companies and their experts protects against claims for professional services, which result in the formation of the costs of legal representation, defense costs, and other costs required compensation for:
- breach of contract
- breach of professional duty
- wrongful act
- dishonesty own employees
- the inability to protect against unauthorized access
- inadequate protection against hackers
- viruses third parties
- infringement of intellectual property rights
- infringement of the proprietary data
- violation of privacy
- temporary or permanent loss of documents or information of third parties.
Among other things, they also cover the costs of legal and other advisors, which must be included for procedures regulators or criminal proceedings.
Business technology companies is different from traditional professional activities, the current legal environment is underdeveloped and constantly changing. Activity technology companies also are not territorially limited to local markets, but are usually carried out in an international environment. Since the existing insurance solutions do not provide adequate protection against potential claims for damages to your subscribers , you need to tailor your professional liability insurance.
Typically, clients technological solutions require that IT and technology company before entering into a contract turns the necessary insurance cover. Given that your partners are often also society and people outside of Slovenia, the insurance policies and insurance conditions, which are sorted me always bilingual .
Examples of claims companies that have opted for insurance
Breach of contract
Based on the successful application to call the supplier undertakes to provide technological solutions for the client – trading company. Expected time for completion of the project has been exceeded and the provider has failed to implement the agreed solution. Due to the untimely execution of the contracting authority decides to break the contract and at your request reimbursement resulting in financial losses. With the help of experts appointed by the insurer, the provider fails to prove that the delay in completion of the project due to lack of cooperation from the client.
Loss of client information
Bank of the IT firm to produce Web applications. Upon implementation of solutions in the transfer of database data loss. As a result, client applications incur a loss of valuable data about their existing clients. Due to the anticipated loss of goodwill and inability recovery database to the contractor’s bank, IT company, addresses a claim for damages. The insurance company on behalf of the IT companies recoup the costs of legal representation of foreign law firms and the amount of the cost of the agreed settlement.
Uselessness of implemented solutions
Based on the successful tender for the provision of support solutions (“business to customer ( B2C )”), an international company with operations pharmacy business, technology the company acquired the business of an existing solution. Despite all efforts, the current system does not work as expected and required in competition and receiving the type of processes only 10 % of orders from users. Pharmacy by the complete transfer of its sales channels to support system technology company runs into financial difficulties. The subscriber chooses a competitive contractor to complete the project on technology and the company addresses the eligible claim, which includes coverage of hitherto paid services, increased labor costs, costs of loss of market position and profit shortfall. The insurance company on behalf of the technology company settled with the client and moreover, on behalf of the technological company pays all the costs of legal representation and independent forensic experts in the field of application development.
Infringement of intellectual property
Technology company for its client, a trading company, develops software tools for use loyalty cards. After successful completion of the project entity submits that the developer of software tools have access to their software tools and is used for implementation. Technological company ‘s client complained that the software tool later sold the competitors subscriber. The contracting authority then in the application technology company alleging infringement of the rights of intellectual property. Technology company with the help of the insurance company and its experts proves that rights to intellectual property the client is not harmed.