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Midwest Tech Insure
and the Technology Association of Iowa join forces to offer a members only distinguished business insurance program.

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Video Overview
Lets be honest, we are very lucky in Midwest to have a less litigious society than in most parts of the country. However, most of my clients do business outside the State of Iowa. The last time you want to know you might not have the right coverage for your firm is in the middle of a big claim! Here are some of the recent losses we have seen in the IT industry.

“Database Disaster”

A web site developer provided administration and upkeep of a large manufacturer’s customer records. The database included customer names, order history and their billing/accounts receivable information. Do to an employee mistake by the developer, the billing and accounts receivable data was destroyed. To make matters worse, the wed site developer had not backed up the database in over a month.

Damages Paid: $750,000
Defense Cost Paid: $150,000

“State of Security”

A web site firm is sued by a customer claiming they were sold a defective system with inadequate security protections. The customer claims the faulty system allowed individuals to access their personal information of all of their frequent fliers and, as a result, they incurred charges associated with identity theft and lost consumers.

Damages Paid: $1,150,000

“Did We Give Up When the German’s Bombed Pearl Harbor?”

Even if your products performed as anticipated, your customers knowledge of your product may not agree.

A software company was sued by a customer after the client used their construction cost estimator. The software itself was found to have functioned perfectly. The error was on the part of the user who later underbid a work project. The customer eventually dropped the case, but only after considerable legal expenses were incurred by the software company.

Damages Paid: $0
Defense Cost Paid: $175,000

“Credit Card Nightmare”

One developer allowed a client to utilize their own credit card machine to process online orders, rather than using a third party vendor. In order to accomplish this, the web provider had the order e-mailed from the web site directly to the vendor. However, there was a copy of the e-mail stored on the clients web server with customer name, address and credit card number…aka…an identity theft jackpot. The system had a security breach, and the client had to inform all of their past customers their credit card data was in the “open” and should be changed immediately. Although there was no tangible damage to the client, they sued over the inconvenience and intangible damages done to their reputation because of the breach of security.

Damages Paid: $785,000
Defense Cost Paid: $90,000

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