Businesses, governments and consumers alike are increasingly reliant on technology, which in turn is evolving rapidly to meet and anticipate market demand. Further, consumers and buyers of technology solutions are becoming increasingly “technology savvy” requiring bespoke and purpose-built software solutions to suit their businesses requirements. For technology product and service providers, the opportunities are enormous – but so are the liability risks.
The rise of cybercrime and product liability exposures, combined with the global nature of IT service provision and supply chains, can leave technology vendors and service providers exposed.
If a tech E&O claim is made, we provide our insured clients with a smooth pathway through the litigation process. This includes helping them understand and appreciate their rights and obligations under their policy and mapping out their prospects of successfully defending the claim. We have dealt with some of the largest IT disputes in the region, along with a significant volume of claims against SME and mid-market IT professionals.
We are also at the forefront of policy wording changes in the tech E&O market, which is important as insurers start to consider whether cyber risk is covered under tech wordings.
Our team also advises on cyber incidents, privacy and data security issues.
Examples of how we have helped insurers and their clients to manage technology liability risks include:
IT infrastructure failure
Acting for a professional indemnity insurer and its insured, an IT service provider, defending a third-party claim made by a former client after parts of the client IT infrastructure failed, which resulted in temporary and permanent loss of data for the client. We provided detailed advice on the insured’s liability and a substantive response to defend the third-party claim.
Storage and processing of data overseas
Advising an insurer on data security issues arising from storage and processing of data overseas, including data shared through third party vendors. The matter included advising on the insurer’s obligations, liability and risks under both statute and contract, and providing recommendations on how to mitigate identified liability and associated risks.
Policy coverage following a ransomware attack
Advising an insurer on policy coverage under an IT company’s IT Liability Policy following a ransomware attack suffered by the IT company, compromising both the IT company’s and clients’ network and data. Coverage questions focused on liability and the types of losses that were covered under the policy, such as third-party claims.
Server encrypted with ransomware
Acting for an IT Service Provider defending a third-party claim made by a client that had its server encrypted with ransomware. The matter involved defending losses and damages that the client claimed to have suffered due to failures of the IT Service provider to restore the servers and system back-ups.
Files encrypted with ransomware
Acting for an IT liability insurer and its insured, an IT service provider, in a third-party claim by one of the insured’s clients that had files encrypted with ransomware. We advised the insured on liability and worked with them to defend the client’s claim for costs and other losses incurred to avoid potential legal proceedings.
Sensitive information exfiltrated in ransomware attack
Acting for a legal services provider defending third-party claims made by clients and mitigating the risk of other potential claims following a significant ransomware attack involving the exfiltration of sensitive client information, including personal information. We also advised on the entity’s data processing and storage practices, including data retention and related issues, to mitigate liability and associated risks going forward.