Professional Indemnity
IT Firms, Web Design, Internet & Technology Companies
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Professional Indemnity Insurance for Technology Companies
Professional Indemnity or Errors and Ommissions insurance is one of the most important covers we sell for anyone providing servcices in the Computer, Information Technology, Communications sector.
Hardly a day goes by without news of fresh disputes and litigation in the technology industries; some companies seem to care more about suing others than they do about running their own business.
There are just so many different ways to end up with a dispute that it is hard to list them all, but to give you some idea, here are some common problems:
Breach of Contract
A software house agrees to provide a bespoke database to a customer. A delivery date is agreed and the software house is confident of delivery on time. A key developer suffers an accident or illness or quits for a better job. The delivery deadline is missed. The customer is losing business as a result.
The customer cancels the contract and sues the developer for breach of contract.
Privacy and Data Loss
An employee copies customer records and account details onto a memory stick intending to work on some projects at home. On the journey home he leaves it on the train.
An employee is made redundant and after he has left it is discovered that he made a copy of the customer database and may have passed it to a competitor.
We can provide cover that becomes effective at the time the data loss is discovered rather then waiting for angry customers to compain. This allows pro-active management of the problem to reduce losses to you and your customers.
Libel and Slander
An employee makes incorrect statements about a competitors products to a potential customer. The customer challenges your competitor on the basis of that statement. The competitor sues.
At the moment the UK is the Libel and Slander litigation capital of the world, and this won't improve unless the law is changed.
Intellectual Property
A company decides to sell it's product in the USA. An American company sues alleging that the product infringes on their intellectual property. This is a common way to attack competitors. Even when the attacking company has a weak case and ultimately loses it can cost large amounts of money to defend the action.
We can provide cover for companies transacting business in the USA and Canada, this is excluded by many UK insurance policies and you should check your cover if your product or service is going to be used by American or Canadian customers, particularly for web based services that have no territorial limits to use.