About FailSafe

Professional Liability Protection

Working together with The Hartford Insurance Company

Why Your Technology Business Needs FailSafe®

Technology is integral to the operation of most businesses today. When technology fails, the financial impacts can be significant, and the companies affected often look to their technology product or service providers for compensation. Unfortunately, traditional liability policies are not designed to respond to pure financial claims. Consider what would happen if you were found legally liable for a financial loss because:

  • A glitch in your software caused their client to lose a month’s worth of billing data
  • Equipment you installed caused your customer to be unable to receive online orders for 48 hours
  • Your cloud-based data services failed to backup critical data that a customer cannot recreate
  • The website you designed for a customer too closely resembled its key competitor’s site

In situations like these, you want to know that you are covered. At Crosslet, we believe that professional liability is an essential part of a comprehensive insurance program for all technology companies. That’s why we are working together with The Hartford who developed the FailSafe® Technology Liability Product Suite. FailSafe® addresses the errors and omissions (E&O) exposures for technology companies of all sizes and, in conjunction with The Hartford’s standard lines solutions, can provide360° of protection for you.

The FailSafe® Product Suite

FailSafe® MEGA features:

  • Breach of warranty or representation coverage with No Contractual Liability Exclusion
  • Security coverage, specifically failure to prevent:
    • Denial/disruption of service
    • Unauthorized access to, unauthorized use of, repudiation of access to, tampering with or introduction of malicious code into firmware, data, software, systems or networks
    • Identity theft or disclosure of nonpublic personal information (including lawsuits from employees or independent contractors)
    • Disclosure of third-party nonpublic corporate information
  • Coverage for negligently supervised rogue employees
  • Coverage extension beyond insured’s products/ services to include the insured’s own computer system and network activities
  • "Most favorable venue" for punitive, exemplary and multiplied damages, where applicable
  • Insured has full right to object to settlement with softened hammer clause of 50%
  • Computer system and network activities of insured fully integrated into insuring agreement
  • Coverage limits from $300,000 to $2 million through ICON. Up to $5 million in capacity is available
  • Affordable minimum premiums starting at $600

*FailSafe® MEGA is available to companies with up to $15 million in annual sales–$10 million maximum sales per location and $10 million maximum property values per location.

FailSafe® GIGA features:

  • Breach of warranty or representation coverage with No Contractual Liability Exclusion
  • Security coverage, specifically failure to prevent:
    • Denial/disruption of service
    • Unauthorized access to, unauthorized use of, repudiation of access to, tampering with or introduction of malicious code into firmware, data, software, systems or networks
    • Identify theft or disclosure of nonpublic personal information (including lawsuits from employees or independent Contractor s)
    • Disclosure of third-party nonpublic corporate information
  • First-party data privacy and cyber extortion expense coverage (including voluntary notification and credit monitoring expenses)
  • Coverage for negligently supervised rogue employees
  • Coverage extension beyond insured’s products/services to include the insured’s own computer system and network activities
  • "Most favorable venue" for punitive, exemplary and multiplied damages, where applicable
  • Insured has full right to object to settlement with softened hammer clause of 50%
  • Computer system and network activities of insured fully integrated into insuring agreement
  • Enterprise-wide services coverage is available
  • Limits up $15 million are available for other coverages
  • Affordable minimum premiums start at $700.
    • Intellectual property & personal injury available by endorsement

FailSafe® TERA features:

  • Intellectual property
    • Copyright and trademark infringement including coverage for software code
    • Plagiarism
    • Misappropriation of ideas under implied contract
    • Piracy as it directly relates to copyright/trademark infringement
    • Misuse of intellectual property right in content, if such misuse results in copyright/trademark infringement or dilution, plagiarism, misappropriation of ideas under implied contract
  • Personal Injury
    • Libel, slander and defamation when caused by content
    • Invasion of privacy, including false light and public disclosure of private facts, wrongful entry or eviction and malicious prosecution

Types of companies that need FailSafe®

FailSafe® can provide coverage to a broad array of technology companies, including:

  • Software & Information Technology
    • Packaged or custom software developers
    • Website designers
    • Computer consultants
    • Systems integrators
    • Federal government IT contractors
  • Hardware & Electronics Manufacturing
    • Electronic components
    • Consumer electronics
    • Computers
    • Communications equipment
  • Telecommunications & Integrated Communication Services
    • Local exchange carriers
    • Long distance telecom carriers
    • Internet/application service providers
    • Website hosting
Get a Quote!

Have questions? We Have Answers! Consult with a Crosslet Business Insurance Specialist to assure your business is properly covered!