Data breaches have been hitting national retailers, and employees at local tech firms can easily disclose confidential client info. The tech market in Dallas is vast, and reliable business insurance has never been so important.
Below are a few situations we hope you, as a tech business, never find yourself in:
|Errors & Omission||Website Developer, LLC was hired to design a fully functional interactive website for a communication company. After 6 months, the developer failed to deliver the website as promised in their contract and the company had to hire another developer to finish the website. The communication company sued for $1,000,000 of damages which included the increased cost to complete the website, lost profits because of the delay in the delivery, and the market value of the website. The jury rendered a verdict for the communications company in the amount of $600,000, which was fortunately covered by the tech firm’s E&O policy.|
|Intellectual Property||Jane Smith had been programming for ‘Custom Developer, Inc’ for 5 years designing enterprise management systems. Due to a decrease in orders, the software company cut expenses and went through a wave of layoffs, which included Jane. So Jane decided to start her own business specializing in enterprise management systems, since this is where her expertise lies. She developed a new packaged software product that provides enterprise management for small businesses. Custom Developer, Inc. feet that the software code used in her new software is their copyrighted code and files suit against Jane for copyright infringement. Though Jane won the case, she had to pay over $100,000 in lawyer fees, which was covered by her insurance policy.|
|Personal Injury||Internet Presence Corp was contracted by a certain state government to develop and implement a website for all of the state parks. During the creation process the took their own photographs to use, which included park guests. In addition, Internet Presence casually interviewed the park employees of the parks, posting biographies of each person. A few park guests and park employees did not consent to this as public information and were not pleased with the end-product. The guests filed sued for invasion of privacy, and certain employees sued for libel and defamation. The jury ruled against Internet Presence Corp in the amount of $500,000, which was covered by their insurance program.|
Tech firms face insurance decisions on a regular basis, dealing with client’s insurance requirements, renewal coverage decisions, and continual E&O concerns. Other key insurance issues for tech fimrs include….
- Affordable premiums
- Certificate requests – Prompt and accurate delivery (including endorsement forms)
- Assistance on audits