Unsecured Technology Companies

Technology companies face unique risks and require specific insurance coverage’s to protect their business from financial loss. Technology professional indemnity insurance is a key element of risk management in the technology industry.

Typical reasons that professional indemnity claims are made against a technology company include:

• Programming errors
• Poor customer communication
• Problems with large integration/installation projects
• Development problems
• Problems with combining or integrating software or hardware components
• Customer changing project scope (often referred to as “project creep”)
• Turnover of key personnel
• Short cuts during testing
• Poor accounts receivable controls that require the tech company to sue their customer for fees owed and this results in a countersuit for negligence in the performance of the tech services/products
• Shortfall in externally furnished products or externally performed tasks

Typical allegations in litigation for professional indemnity:

• Negligence
• Breach of Contract
• Failure to Perform
• Breach of Warranty
• Misrepresentation
• Fraud
• Intellectual Property Rights Infringement

For help and advice about professional indemnity for the technology industry please contact, Ben Butler on 0118 9165481 or complete one of our enquiry forms.

Author: Adam Lawrence | February 13, 2012

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