Better Protection for Business Exposure to Growing Risks
In today’s corporate world where the complexity of service, technology, privacy breaches and more puts your business at risk for lawsuit liability, anything can happen. Errors and Omissions, Media and Privacy Coverage can effectively shield your business from the rising risks you face.
NJ Insurance Claim Scenarios
Errors and Omissions Insurance
M & M Consulting* , a company focused on consulting proficiency, was employed to lower distribution costs associated with a corporation of bakery chain stores. M& M directed the corporation to bake and package their products themselves while outsourcing its delivery to a transporting business. Working side by side with the bakery corporation, M & M succeeded in implementing the changes by the close of the year. Things, however, did not go exactly as planned and distribution by the transporting company was delayed. This resulted in a fiscal loss for the bakery chain, prompting a negligence lawsuit against the consulting firm. Cost for the M & M defense surpassed $200,000.
Technology Errors and Omissions Insurance
Softwaves* was a software company contracted by a trucking business to devise a program that would guide shipments on a more efficient route. Half a year later, Softwaves still had not completed the program as per the contract’s agreement. The trucking company had no recourse but to hire another programming company to finish the assignment. The trucking company sued Softwaves for $3,000,000 in damages, including the costs incurred to complete the project and regain profit losses. Although Softwaves disputed the amount because it had paid only $650,000 for the program, the jury awarded the trucking company with more than $1,000,000 because of Softwaves’ negligence.
Intellectual Property Insurance
In midst of a telecast sports event, an auto company broadcast a commercial involving a ball stamped with a logo strongly resembling that of a fashion designer. The designer brought a trademark violation lawsuit against the auto company. The jury awarded the fashion designer with $3,200,000.
Personal Injury Insurance
A famous resort issued a tweet about another hotel in regard to bed bugs. The offended hotel filed a liable lawsuit against the creators of the damaging tweet. The jury found the tweet to be false and awarded the plaintiff with $1.25 million for damages.
Network Security and Privacy Liability Insurance
An error by one company’s employee sparked a wide-spread computer virus. This affected about 25% of customers, resulting in rampant data loss and network shutdowns. Affected customers filed a lawsuit against the company for costs involved in restoring data and fiscal loss. The jury awarded the customers with $3,000,000 for incurred damages.
Payment Card Industry Fines and Penalties Insurance
A retail chain company was found to have erroneously transmitted non-encrypted credit card numbers. The payment card processing firm that the chain company used was fined by the credit card companies for a data breach. The payment card processing firm pulled out $100,000 from the chain company’s bank account and also filed a lawsuit against the company for the remaining $500,000.
*Not real name
PRIME Insurance: Providing the Protection You Deserve
PRIME Insurance Agency understands your business risks. Utilizing our extensive network comprised of the leading insurance companies, we search the market to present comprehensive individualized tailored coverage at competitively lowest quotes.
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Summary: Today’s corporate world brings many opportunities to succeed. Unfortunately, along with the good come the liability risks!