Real Claims that were defended and paid under The Hartford’s Suite of Failsafe Technology Products
- Type of Claim Introduction of Malicious Code Claim
- Policy Type FailSafe MEGA, FailSafe GIGA with Security Coverage Endorsement or FailSafe TERA
- Cause of Action Failure to Prevent the Introduction of Malicious Code
- Type of Insured Systems Integrator
- Facts A systems integration company provides hardware and software integration services for customers. When uploading a new software program for a customer, a malicious code is inadvertently transferred to the customer’s network causing widespread loss of data and disruption to the customer’s operations. In the download process, the virus spreads to the client’s computer system, resulting in widespread loss of data and a computer network shutdown. The customer seeks damages for the costs to reconstruct the data as well as the financial impact associated with the disruption of business operations.
- Resolution Claim Expenses: $35,000 Indemnity: in excess of $400,000
- Type of Claim Security Breach/Unauthorized Access Claim
- Policy Type FailSafe MEGA, FailSafe GIGA with Security Coverage Endorsement or FailSafe TERA
- Cause of Action Failure to Prevent Disclosure of Personally Identifiable Information
- Type of Insured Website Developer
- Facts While conducting maintenance on a customer website, a website development and maintenance company disables security elements to apply customer requested modifications to the website. Upon completion of these modifications, the website is put back in service but the security elements are left disabled and the secure sections of the website are accessible to the public. Three months later, the error is discovered and the customer alleges damages that include: (1) lost customers due to adverse publicity related to the failure to protect sensitive information contained in the secure section of the website; (2) costs to notify affected parties of the possibility that their personal information was exposed to unauthorized individuals; (3) credit monitoring expenses for individuals impacted by the possible disclosure of personal information; (4) regulatory proceeding expenses; etc.
- Resolution Claim Expenses: $85,000 Indemnity: $80,000
- Type of Claim Security Breach/Failure to Prevent Disclosure of Personal Information
- Policy Type FailSafe MEGA, FailSafe GIGA with Security Coverage Endorsement or FailSafe TERA
- Cause of Action Unauthorized Access, Disruption of Service, and Improper Dissemination of Personally Identifiable Information
- Type of Insured Hosting/Connectivity Service Provider
- Facts A company provides customers with hosting and connectivity solutions, including internet access, hosted environments for internal and external facing websites, hosted application services, etc. Access is restricted to authorized users through assigned user identification with user controlled passwords. An unknown third party obtains unauthorized access to one of the hosting company’s servers and disrupts the network activity for a specific client for a period of days. The unauthorized user also routes personally identifiable information of the client’s customers to an unknown party. The client impacted by the disruption of the server sues the hosting company for lost business as well as expenses the client incurred as a result of the personal information breach.
- Resolution Claim expenses: $15,000 Indemnity: $20,000
- Type of Claim Security Breach/Failure to Prevent Disclosure of Personal Information
- Policy Type FailSafe® MEGA, FailSafe GIGA with Security Coverage Endorsement or FailSafe TERA
- Cause of Action Improper Dissemination of Personally Identifiable Information
- Type of Insured Software Developer
- Facts A software developer manufactures and distributes workforce management software that allows third parties to track employee hours, overtime and vacation time as well as compile information for payroll processing. The software is offered on a ‘Software as a Services’ (SaaS) model that allows the developer to provide customers with access and use of the applications through a hosted environment including storage of customer data on a server controlled by the developer. An unauthorized access to this data results in the disclosure of personally identifiable information of hundreds of individuals. A group of these individuals sues the software company for damages and expenses related to the fraudulent use of their information.
- Resolution Claim expenses: $30,000 Indemnity: $65,000
