Here are some examples of successful claims:
Your dev team pushes a bug that causes your proprietary and purchasing software to spend 10x the client’s desired budget on Facebook ads, causing a $220,000 claim for damages from the client. Your E&O coverage kicks in to cover the settlement and defense costs.
Unhappy with your latest pivot, an angel investor brings a lawsuit alleging that you and your fellow officers/directors have mismanaged the company and violated your fiduciary duties. Your D&O policy is triggered to defend you and your fellow directors/officers in their decision-making for what’s best for the company.
Your fintech company is gaining steam quickly and the SEC wants to take a closer look. You receive notice that regulatory action is proceeding against you and your “Side C” D&O coverage kicks in to defend your company.
Your finance team approves bills coming from one of your vendors...only they don’t notice the email address for the vendor is a bit off and they’ve just paid out $98,000 to a fraudulent invoicer. The Social Engineering coverage section on your crime insurance policy kicks in to cover the losses.
You use a couple of pictures you found on Google for a blog post on your website, thinking in good faith that it was free for public/commercial use. Years later, you get a demand letter claiming excessive damages of $150,000+ for unauthorized use of the images. Fortunately, you’ve purchased media liability insurance back before the infringing act occurred and your insurance carrier steps in to defend and settle even though years have passed.
You come into work on Monday and realize that over the weekend, someone broke into your office and stole numerous laptops and monitors. Once you assess the damages, based on replacement cost estimates, as long as you have the right amount of Property coverage, and the loss exceeds the deductible, this coverage will kick in to cover the property loss.
One of your clients comes to your office for a meeting and trips while walking through the office on a laptop charger haphazardly left in the middle of the floor. They fall and break their ankle, sending you the medical bills. Your General Liability coverage will apply here to cover the losses.