Technology/Telecom Errors and Omissions
Companies engaged in technology/telecom products, services, and solutions are judged by their investors, executive board and customers not only on the quality of their products and services, but also on their ability to manage risk and contractual relationships.
The digital age has drastically changed the landscape of risks. Companies are no longer able to rely on policies based upon outdated language or restrictive coverage. Today the risks extend considerably beyond negligence arising out of the reliability, accuracy, or timeliness of an underlying product or service. Negligent misrepresentation and contractual liability, including contractual provisions such as indemnities, warranties, representations, and service standards are more important in disputes between technology providers and their clients.
There is the ever increasing risk of security flaws or breaches that may result in financial harm not only to the customer, but also to the “customer of the customer”. These potential losses are relatively infrequent, but potentially severe should they occur.
Our role is to provide creative and flexible insurance programs that are tailored to the risks, services and solutions of the specific client, which may include non-technology professional services as well. The programs must also reflect the contractual challenges the client faces, especially with major customers and must evolve in order to accommodate changing legal and regulatory requirements and risk financing philosophy.
We have leading market wordings and amendments, as well as a line slip in London for SME technology companies, called TechConvergence.
We have considerable expertise as well in:
- Intellectual property infringement, including design rights, open source software, and patent
- Advertising and marketing services, media services for others (multi-media liability)
- Business Process Outsourcing (BPO) and IT Outsourcing (ITO), as well as other professional services
Lockton Service
Service starts with listening. We take the time to understand your specific goals, design a program that fits your needs, aggressively negotiate coverage, and implement a service plan. You will have the same dedicated service team throughout the entire process which allows us to anticipate your needs and create accountability.
It’s all about you. As a private, family-owned company, all our Associates focus solely on you, our client, rather than public shareholders.
Long-term thinking. Clients stay with us based on our expertise, creative solutions, seamless global resources and outstanding service. Our client retention rate of 95 percent reiterates our commitment to each and every client.
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Success Stories: |
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Cost savings of more than $2M achieved over expiring program
Through a Request for Proposal process, Lockton’s Technology team was presented with a challenge by a large semiconductor company to come up with creative renewal options within two months. The team assisted the risk manager in an initial risk audit even before the company was a client and identified areas which were most in need of solutions.
Once the account was won, a comprehensive analysis of the client’s current program garnered detailed applications, statements and reports used to create a submission that resulted in cost savings of more than $2 million premiums over the expiring program. The team then negotiated an option for the client to use some of this savings to increase their insurance limits where necessary while still reducing insurance premiums from the expiring program by more than $1.2 million.
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Related Insights & Publications: |
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Data Protection Risks and Outsourcing
February 2008
written by Emily Freeman
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TechConvergence Application
January 2008
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