Are you a Software Developer?
What is your cost of exposure? The following claim scenarios illustrate how individual risks can lead to a total business loss, and highlight the importance of the Tech Initiative coverage.
Breach of Contract/Failed Software
A software developer received a demand letter from a State Agency demanding a repayment of significant amounts in fees after the case management software platform it designed suffered critical outages and numerous "bugs" that allegedly delayed the payments of benefits on at least two occasions. After negotiating with law enforcement officials, the developer agreed to pay hundreds of thousands of dollars in exchange of a release of the claims.
Failure to Perform
A software provider that sold and customized editing software for a periodical publisher received a demand from its customers alleging numerous delays in production associated with functionality issues that resulted in the customer reverting back to its legacy software. The software company believed that the editing software was functional as a similar publisher has used it for several years. After principal-to-principal discussions between the parties, the developer agreed to pay millions in damages to its customer.
Healthcare Business Associate - Stolen Medical information
An employee of a third party administrator under contract with a government agency left computer tapes in his vehicle containing nonpublic personal information of millions of citizens. The vehicle was stolen triggering the administrator's duty to notify the affected parties. While there was no evidence demonstrating that the perpetrator of the theft ever attempted to use the information, the notice costs and call center operations totaled millions of dollars. The company was also served with numerous class action lawsuits, which remain active.