Top Reasons to Write High Tech with The Hartford

SPECTRUM for Technology Business

  • Direct access for Hartford Agents to top professional technology liability products, no need to go through an MGA or Wholesaler.
  • Admitted coverage for Tech E&O on our FailSafe MEGA coverage part to SPECTRUM in all but 5 states; admitted coverage even in NYS.
  • As part of SPECTRUM, receive the benefits of one policy/one bill including payment installments on the FailSafe MEGA Tech E&O.
  • Tech E&O designed to meet the financial needs of small tech businesses – even self employed consultants – retentions as low as $2500; minimum premiums as low as $800 for $1M limit (depending on type of operations).
  • All FailSafe™ Technology Professional Liability products available to Select Customer accounts that require higher limits or additional coverages. This includes our robust monoline technology professional liability policy providing breach of warranty, third party security risk, intellectual property and privacy coverages in one policy – eliminates multiple retentions applying to a claim, differing terms & conditions and different limits.
  • Professional Services Exclusion amended to provide bodily injury, property damage and personal & advertising injury coverage arising out of technology services for the majority of risks– low cost, automatically generated, opt out optional coverage.
  • Policyholder Services for tech business – including Tech E&O written on FailSafe MEGA as a part of SPECTRUM.
  • FailSafe MEGA can be submitted via ICON along with your SPECTRUM, Auto, Workers’ Compensation and Umbrella.
  • Premium indications for FailSafe MEGA Tech E&O can be obtained in ICON – even in Quick Quote.
  • FailSafe MEGA commissions higher than market average – 15%.
  • All FailSafe™ products included in Tier III and Preferred Hartford Commercial Lines IBA (for growth, not profit) increases agent revenue.
  • Actual Loss Sustained Business Income for Tech businesses written on SPECTRUM.
  • Computers & Media coverage including virus damage with no sublimit (12 hour waiting period applies to Business Income losses arising out of damage to data/software/programming due to virus).

* This is an informational tool only. In the event of a conflict, terms and conditions of the policy or quotation prevail.

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Categories: Hartford Articles

Spectrum® with FailSafe® for Small Technology Businesses

Customized Insurance for Technology Businesses

Managing a technology business is never easy. In fact, it’s getting tougher. Your customers want services performed at the speed of light, with cutting-edge technology and razor sharp accuracy.

You get it right 99 times out of 100. We’re here for that one time when things that can go wrong – do go wrong. And people sue. We’re here, because, life isn’t fair. For nearly 200 years, The Hartford has been protecting businesses.

Along the way we’ve created a simple, yet comprehensive, business insurance program that can protect your business from the hazards of the “real world,” including risks that are threatening technology firms like yours.

We call it Spectrum®‚ and it offers a broad array of coverages to meet the needs of your technology business. Upgraded with our new FailSafe® MEGA Technology Errors & Omissions, Spectrum is the next generation of business insurance. Spectrum has been designed to be as flexible as you need it to be. As your company’s needs change, upgrade options and alternative packages can be added to reduce your risk exposures. So if you…

  • Design software programs
  • Create websites
  • Manufacture hardware
  • Set up corporate networks
  • Create e-commerce applications
  • Consult on the next great technological breakthrough

…The Hartford is ready to help protect what you’re building with great products, dependable service and the best people in the industry.

Ask yourself – Does your current insurance:

  • Protect against the failure of your hardware or
    software products?
  • Cover replacement of software and data lost due
    to damage caused by a virus?
  • Cover you for negligent acts or failure of your
    technology services to perform as intended?
  • Protect you for libel, slander, invasion of privacy
    and malicious prosecution?
  • Replace the business income you lost if your
    production were interrupted for 24 hours due
    to a power failure during a storm?
  • Pay to restore customized programming you
    developed after it was destroyed in a fire?
  • Cover your manufacturing equipment damaged
    by a motor burnout?

If your answer is, “Gee, I don’t know,” today’s the day to see your independent agent and ask about The Hartford’s Spectrum Business Owner’s Policy. It protects against all these things – and more.

The Hartford’s Spectrum Business Owner’s Policy offers you comprehensive protection – at a price you can afford.

Business Liability

Your Spectrum policy from The Hartford protects your business against financial loss resulting from claims of damage (actual or alleged) caused to others by you or your employees. For example:

  • Premises and Operations Liability
    Provides coverage for bodily injury and property damage sustained by others at your premises or as a result of your business’s operations.
  • Products and Completed Operations
    Covers you against bodily injury and property damage to others caused by products you sell or by the work you perform for your customers.
  • Employment Practices Liability
    Covers claims, including legal defense costs, for certain employment-related lawsuits brought against you by your employees or job applicants. A basic limit of insurance is automatically provided, with higher limits available for an additional premium.
  • Medical Expenses
    Pays the applicable medical costs if someone is injured and needs medical treatment due to an accident on your premises.
  • Personal and Advertising Injury
    Covers you for certain offenses you commit in the course of your business, such as libel, slander, disparagement, or copyright infringement in your advertisements.
  • Defense Costs
    Pays legal expenses for certain liability claims brought against your business regardless of who’s at fault.
  • Tenant Liability
    Protects your business against claims of damage due to fire or other covered losses caused by you to premises that you rent.

Building and Business Personal Property

Your Spectrum policy also contains coverage to repair or replace your building and any equipment, stock, furniture or fixtures that you own. There’s a lot of business property coverage included in Spectrum. Compare what your policy covers with this:

  • Buildings and Contents
    Covers your buildings and/or business contents if they are destroyed because of a covered loss. You’ll receive the full cost to replace your property up to a limit you select when you purchase your policy.
  • Business Income
    Reimburses you for your actual loss of earning for up to 12-months resulting from a covered loss to your property. Extra expenses needed to continue your operations, such as renting a temporary office space, are also covered.
  • Equipment Breakdown
    Covers the cost to repair or replace equipment, such as computers, air conditioners, phone systems and steam boilers, from loss or damage caused by mechanical breakdown or artificially generated electrical current.
  • Money and Securities
    Protects money and securities used in your business if they are stolen, destroyed or lost.

Optional Upgraded Coverages

To help you and your agent build the perfect insurance coverage for your technology business, Spectrum offers a wide variety of optional upgrades from which to choose. For example:

  • FailSafe MEGA
    This optional coverage is specially designed to complement your Spectrum policy and offers up to $1 million in Technology Errors & Omissions insurance. A streamlined application along with a single bill saves you time and effort. Also, you benefit from expert Professional Liability claims handling from the same reputable carrier that handles your Business Liability – The Hartford.
  • Computers and Media
    Provides coverage for your computers, peripheral devices and media. Coverage is also provided for the costs to research, replace or repair lost or damaged data and software as a result of covered damage to computer equipment, certain power failures, or a computer virus. Business Income Coverage also applies to computer equipment, data and software.
  • Computer Fraud Coverage
    Protects you against theft of money, securities or other property caused by fraudulent transfer by computer.
  • Off-Premises Utility Services – Direct Damage This endorsement extends coverage to include loss of, or damage to, your covered property caused by certain interruptions of service. The interruption must result from direct physical loss or damage by a covered cause of loss to property located off-premises that provides you with water, communication or power supply services.
  • High Liability Limits
    Provides you with optional business liability limits. To bid successfully for many jobs, you need to meet the requirements of liability coverage.
  • Employee Dishonesty
    Covers your business for loss of money or your property resulting from dishonest acts committed by your employees. Coverage extends to your customer’s property located at your office.
  • Accounts Receivable
    Protects you if you are unable to collect outstanding balances as a result of loss or damage to your accounting records.
  • Valuable Papers and Records
    Protects the value of your time, work and research to re-create your customer records or files if they are damaged or destroyed by a covered loss.
  • Forgery
    This coverage adds Forgery and Alteration by someone other than an employee, trustee or director as a covered cause of loss and defines Covered Property to include: checks, drafts, promissory notes or similar written promises.
  • Umbrella Coverage
    Provides you with up to $10 million of liability protection over and above the limits of other specified liability policies in your business program.

Also, talk to your agent about The Hartford’s packages of options specially designed and value-priced for your business.

Other Important Coverages from The Hartford

  • Commercial Auto Coverage
    Our policy protects you against financial loss resulting from accidents involving the vehicles you use in your business. The Hartford offers valuable enhancements you won’t normally find on other commercial auto policies, such as excess coverage for hired autos and the extension of liability coverage to vehicles leased in the name of an employee on your behalf and at your direction.
  • Workers’ Compensation
    The Hartford’s Workers’ Compensation coverage provides 24-hour, seven-days-a-week access to our claims reporting facility. In addition, our state-of-the-art managed care and Return-to-Work program will help you get your employees back on the job as soon as possible.

That’s Not All

To all of this, we’ve added the convenience of flexible premium payment plans, an electronic funds transfer plan, and 24-hour, toll-free claims reporting.

All business insurance is not the same. The Hartford has nearly 200 years of experience insuring American businesses. We know the coverages your business needs, and have bundled them together for your convenience – and for substantially less than they would cost separately.

Give your local independent Hartford agent a call and start enjoying the peace of mind that comes from knowing you’re covered by the business insurance specialist – The Hartford. Or, visit us at http://www.thehartford.com/business/ for more information.

This brochure outlines, in general terms, the coverages afforded under this policy. Examine the policy carefully for any exclusions, limitations or any other terms or conditions that may specifically affect coverage. The terms and conditions of the policy prevail.

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Categories: Errors & Ommissions, Hartford Articles

FailSafe MEGA Technology Coverage

Win more technology accounts with The Hartford’s technology E&O coverage

Hartford_logoFailSafe MEGA is The Hartford’s technology errors and omissions coverage part that’s designed exclusively for our small business insurance package, Spectrum.

Key Features

Here are some of the key features of FailSafe MEGA that may be especially valuable for your small technology clients:

  • Claims first made and reported coverage part
  • Admitted coverage part
  • Universal coverage territory
  • Defense within the limits
  • Up to $1 million in limits available
  • Minimum premium range from $800 to $1,250 for a limit of $1 million
  • Minimum retention of $2,500
  • Technology services defined
  • Agency quote capability in ICON

Target Market

FailSafe MEGA is ideal for small technology companies that offer the following types of services:

  • Development, sales, installation, integration and/or maintenance of:
    – Hardware
    – Packaged software
    – Custom software
  • Consulting services
  • Web site design
  • Systems outsourcing/systems facilities management/administration
  • Application services/leasing (ASP, MSP, etc.)
  • E-commerce applications

Risks that Don’t Fit

There are some risks for which FailSafe MEGA is not designed. These include technology companies that are involved in:

  • Environmental testing and remediation
  • Factory automation/process control
  • Medical diagnostic/patient care
  • Aerospace/defense
  • Emergency response
  • Structural architecture
  • Internet access

To Learn More

Spectrum offers small technology businesses much more than what’s mentioned here. For full details on coverage and eligibility, contact your Select Customer Sales Representative.

This is a fact sheet, not a policy. This fact sheet does not replace or change the FailSafe MEGA technology errors and omissions liability coverage part.
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Categories: Hartford Articles

FailSafe Technology Liability

Professional liability crash protection designed exclusively for technology businesses

These days, any business could be sued. But technology companies are especially prone to lawsuits, and those lawsuits can be very Hartford_logocostly. Consider what would happen if your technology firm was found legally liable for a financial loss because:

  • a bug in a software program you produced caused a client’s server to crash, or
  • the equipment you installed for your biggest customer didn’t work, or
  • the website you designed for one customer too closely resembled its key competitor’s site.

In situations like these, you’d want to know you were protected by a sound insurance program.

At The Hartford, we believe that a complete insurance program for technology businesses includes professional liability coverage. That’s why we developed the FailSafe suite of professional liability policies. They were designed for virtually any sized technology company. Better yet, these coverages complement the standard insurance packages The Hartford offers for your business.

Coverage that Can Grow with You

Because no two technology companies are alike, The Hartford addresses varying degrees of insurance needs with three increasingly robust FailSafe products. This suite of products is designed to evolve with your company’s changing needs. So, as your firm grows, you can migrate from one FailSafe product to another.

FailSafe MEGA

FailSafe MEGA is ideal for small technology companies with less than $5 million in revenues. It is designed for the following types of services:

  • Development, sales, installation, integration and/or maintenance of:
    – Hardware
    – Packaged software
    – Custom software
  • Consulting services
  • Web site design
  • Systems outsourcing/systems facilities management/ administration
  • Application services/leasing (ASP, MSP, etc.)
  • E-commerce application development

FailSafe MEGA provides E&O coverage in case someone claims:

  • You were negligent in fulfilling your duties because of something you allegedly did wrong or failed to do.
  • Your technology services did not perform as intended.

FailSafe MEGA

FailSafe GIGA is a monoline E&O policy including breach of warranty coverage. It is designed for the following types of services:

  • Development, sales, installation, integration and/or maintenance of:
    – Hardware
    – Packaged software
    – Custom software
  • Consulting services
  • Internet access
  • Web site design/hosting
  • Systems outsourcing/Systems facilities management/administration
  • Application services/leasing (ASP, MSP, etc.)
  • E-commerce application devel­opment

FailSafe TERA

FailSafe TERA is a robust technology liability policy that includes specified E&O, as well as:

  • Specified content, which covers copyright, trademark infringement, and plagiarism.
  • Specified security, which encompasses failure to prevent unauthorized access, and denial of service.
  • Specified personal injury, which protects you against claims of libel, slander, and invasion of privacy.

FailSafe TERA is designed for the following types of services:

  • Development, sales, installation, integration and/or maintenance of:
    – Hardware
    – Packaged software
    – Custom software
  • Consulting services
  • Internet access
  • Web site design/hosting
  • Systems outsourcing/Systems facilities management/administration
  • Application services/leasing (ASP, MSP, etc.)
  • E-commerce application development

Additional FailSafe Benefits

What also makes FailSafe particularly appealing for technology companies is that it:

  • Provides protection based on when claims were first made and reported.
  • Includes subsidiaries in the definition of “insured”.
  • Specifics coverage for independent contractors and clients.
  • Provides universal coverage.
  • Offers insurance limits of up to $10 million (GIGA and TERA only).

If you think you could benefit from the array of coverages FailSafe offers, contact your Hartford sales representative or visit The Hartford website.

This document is a general overview of the types of accounts written under the FailSafe program. Read the policy to determine what coverage is actually granted. For full details on coverage and eligibility, contact your Hartford sales representative.
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Categories: Hartford Articles, Tech Insurance

Hartford’s FailSafe

A product for the evolving insurance needs of the technology industry

Hartford_logoFailSafe, The Hartford’s suite of professional liability products for technology companies. Available in three increasingly powerful forms – MEGA, GIGA, and TERA – it meets the needs of virtually any size technology business.

FailSafe MEGA is an E&O coverage part designed to fit seamlessly into the Select Spectrum® BOP program. GIGA and TERA provide broader coverage options for clients with more significant business risks.

FailSafe MEGA

FailSafe MEGA* is designed for the following types of services:

  • Development, sales, installation, integration and/or maintenance of:
    – Hardware
    –Packaged software
    – Custom software
  • Consulting services
  • Website design
  • Systems outsourcing/systems facilities management/administration
  • Application services/leasing (ASP, MSP, etc.)
  • E-commerce application development

Key elements of the FailSafe MEGA program:

  • E&O coverage part for Spectrum
  • Designed for small technology businesses with $5 Million or less in annual sales
  • Claims first made and reported policy
  • Defense within the limits
  • Coverage Limits as low as $300,000 or as high as $1 Million
  • Minimum retention of $2,500
  • Basic and optional extended reporting periods
  • Affordable; premium can be as low as $800 a year
  • Specified coverage for independent contractors and clients
  • Technology Services defined
  • Universal coverage territory
  • Automated application
  • Real-time quoting capability
  • Day-to-day servicing of your small tech accounts can be handled by our Service Centers

Of course, there’s a whole lot more to the FailSafe product. Please consult the policy for details and exclusions.

A FailSafe MEGA Example

Life isn’t fair. People make mistakes. People get sued.

Imagine you have a client who owns a small computer software business. He installs and often customizes accounting software for
national retailers.

One April morning one of his customers calls.

It seems that the customer’s auditor has discovered that a large number of journal entries that were input correctly have been misclassified due to an error in your client’s software.

Panic sets in, but, your client develops a plan and fixes the software code immediately. However, his customer incurs substantial accounting fees due to the misclassifications. Fees for the customer’s auditor to review all the affected transactions and make corrections totaled $100,000.

In addition, earnings in the customer’s prior quarterly financial statement had to be restated, so accounting and legal fees totaled $75,000. Now the customer sues your client for those fees – and wins.

How do you answer?

With FailSafe, an error like the one depicted above would be covered. And your client would continue to consult for another day, if you included FailSafe MEGA in the Spectrum® program you provided for him.

FailSafe GIGA

FailSafe GIGA* is a monoline E&O policy including breach of warranty coverage. FailSafe GIGA is designed for the following types of services:

  • Development, sales, installation, integration and/or maintenance of:
    – Hardware
    – Packaged software
    – Custom software
  • Consulting services
  • Internet access
  • Website design/hosting
  • Systems outsourcing/Systems facilities management/administration
  • Application services/leasing (ASP, MSP, etc.).
  • E-commerce application development

Key elements of the FailSafe GIGA program:

  • Monoline E&O Policy including breach of warranty coverage
  • Claims first made and reported policy
  • Defense within the limits
  • Up to $10 Million in limits available
  • Minimum premium of $1,500 for limit of $1 million
  • Minimum retention of $2,500
  • Basic and optional extended reporting periods
  • Technology services defined
  • Universal coverage territory

Of course there’s a whole lot more to the FailSafe product. Please consult the policy for details and exclusions.

FailSafe GIGA Example

It’s a fact of life. If things can go wrong, they will go wrong. And these days, people sue.

Imagine one of your clients is a software company that designs custom software for use by large companies to monitor traffic on their websites. The client’s been with you for years. Based on information derived from your client’s software over a two-month period, one of their customers finds that assumptions they made about the age of their key market segments are incorrect. They are aiming at a group that is too old.

So, they hire a media company and revamp their website, jazz it up, and make it younger, more edgy. The cost: $450,000.

But then – disaster. Someone checks the data, and examines the software programming. They discover an error that caused the age group data to be stated incorrectly. It will cost $300,000 to have the media company redesign the site to make it more compatible with the correct audience. Plus, the company has lost significant traffic since the website’s redesign. They sue – and win.

Your client asks you, “Am I covered?”

How do you answer? Remember, for years, they’ve depended on you to protect them with a complete business insurance program. With FailSafe, The Hartford’s suite of technology professional liability products, an error such as this would be covered. And your client would be around to write new software tomorrow, if you included FailSafe GIGA in their comprehensive business insurance program.

FailSafe TERA

FailSafe TERA* is a robust technology liability policy including specified E&O, content, security and personal injury coverages.

FailSafe TERA is designed for the following types of services:

  • Development, sales, installation, integration and/or maintenance of:
    – Hardware
    – Packaged software
    – Custom software
  • Consulting services
  • Internet access
  • Website design/hosting
  • Systems outsourcing/Systems facilities management/administration
  • Application services/leasing (ASP, MSP, etc.)
  • E-commerce application development

Key elements of the FailSafe TERA program:

  • Monoline Technology Liability Policy, including:
    – E&O
    – Content: copyright and trademark infringement, plagiarism, and more
    – Personal Injury: libel, slander, infliction of emotional distress, and more
    – Security: failure to prevent unauthorized access, denial of service, and more
  • Claims first made and reported policy
  • Defense within the limits
  • Up to $10 Million in limits available
  • Minimum premium of $2,000 for limit of $1 Million
  • Minimum retention of $2,500
  • Basic and optional extended reporting periods
  • Subsidiaries included in the definition of named insured
  • Specified coverage for independent contractors and clients
  • Definition of Technology Services is made to order
  • Universal coverage territory

Of course there’s a whole lot more to the FailSafe product. Please consult the policy for details and exclusions.

FailSafe TERA Example

It starts with a difference of opinion. It escalates to a lawsuit. It;s then resolved by a legal opinion.

Imagine your client is a successful, sophisticated technology company that designs websites. They have more than 100 employees and $40 million in sales. You’ve been their insurance eyes and ears since day one.

They’re hired by CheapoMart to create a website where they will sell their products at great low prices. Your client creates an ultra slick site and installs a customized order management software package. Everything is great until a month after launch. The company finds that the software is assessing a tax on all orders. Except CheapoMart isn’t authorized to collect such a tax. CheapoMart’s accountants tell them the money must be refunded – to the hundred thousand people who made purchases.

The cost: $400,000. CheapoMart sues your client – and wins. But it gets worse. CheapoMart is then sued by one of their big competitors, alleging that the look and feel of CheapoMart’s new website is very similar to their own, infringing on several of their copyrights and trademarks. CheapoMart decides to fight and names your client as third party. They lose. It costs your client another $700,000.

Your client asks, “Are we covered?”

How do you answer? Remember, they’ve depended on you from the beginning. With FailSafe, errors like the ones depicted above would be covered. And your client would continue to design Web sites for as long as the web exists if you included FailSafe TERA in their comprehensive business insurance program.

*May not be available in all jurisdictions.

Coverages may differ in availability by state. All coverages are individually underwritten. For a complete description of all coverages, terms and conditions, refer to the insurance policy. In the event of a conflict, the terms, conditions and exclusions of the policy prevail.
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Categories: Hartford Articles