Almost every organization, whether small or large, could risk software failure for any number of reasons. Whether it’s mobile or web applications, operating systems (Linux, Mac OS X), email programs (Outlook, Gmail) or databases (Access, FileMaker Pro), all of these types of software can easily become the target of cyberattacks from malicious entities if adequate security measures aren’t taken.
According to CIO, more than 50% of IT projects fail due to insufficient funds, resources or time.
Operating system crashes are widely considered to be among the most serious types of software failures because it means a whole computer system stops functioning. However, Software Quality Models (SQMs) are often used to ensure high-quality software products are provided. These models are typically based on inductive learning algorithms or data mining algorithms.
There are many precautions that can be taken in order to avoid these types of issues. Here are some of the top liabilities associated with software failure.
Although data breaches — which can be carried out either due to financial or espionage-related motivations — aren’t the only kind of cybersecurity problem most tech businesses experience, they are unfortunately very frequent. Thus, many companies are desperate to identify more ways to prevent sensitive information from becoming compromised.
According to a recent report from Statista, 446.5 million records in the United States were exposed in 2018 as a result of 1,244 data breaches. Additionally, social media data breaches represented 56% of data breaches in the first half of 2018, according to IT Web. Yahoo, Facebook, and First American Financial Corp. are just three examples of major corporations who have become the target of mass data breaches in recent years.
Some of the most effective ways to combat data breaches include implementing firewalls, multi-factor authentication, monitoring data transfers, encrypting devices and patching vulnerabilities in a timely manner.
When equipment of any kind — machinery, USB drives, hard drives, or video recording equipment — stops functioning, a company can suffer immensely. Improperly-functioning tools used to produce projects means financial losses and unhappy clients, among other issues.
Training employees, including educating them on cybersecurity, can also make a huge difference regarding the prevention of data breaches and equipment breakdown. Equipment maintenance Key Performance Indicators (KPIs) like availability, product quality and performance can also be a strong resource.
Error And Omission
Glaring mistakes like coding errors and omissions can be catastrophic for companies, as they often result in information being reported late, among other issues. Insurance for errors and omissions is generally recommended for companies that host servers utilized by third parties for data-related reasons and that may be hacked. The company’s insurance provider can then cover several legal expenses, including attorney fees and any damages.
Information Systems Risks
Common examples of information systems software include vertical packages, which help users manage construction projects or track inventory of businesses and hospitals, or horizontal packages, which perform a more general function like office automation or accounting.
The most frequent kinds of risks associated with information systems include inadequate information quality, accessibility, presentation, and security. The consequences of these occurrences include lower productivity and consistency, participant frustration, and information loss or theft.
Avoid High-Cost Lawsuits
Extremely costly lawsuits can often arise whenever a company fails to protect employees’ or clients’ personal information. Taking some of the previously-mentioned precautions can help prevent such lawsuits. Acquiring general liability insurance can also be a great safeguard against potential lawsuits.
Answer Questions And Concerns With MFE Insurance
Speak to the experienced professionals at MFE Insurance to learn more about how to protect your company from lawsuits and other legal issues in the event that it experiences any type of software failure.
MFE has offices in Los Angeles, CA and Birmingham, MI and is an Independent Insurance Agency that is dedicated to guaranteeing clients the most competitive prices possible by quoting and placing insurance through multiple carriers.
Regarding technology, MFE offers several different types of insurance policies, including general liability insurance. This covers third-party lawsuits that can occur during a claim, including attorney fees, witness fees, court-ordered judgements and settlements. MFE also provides commercial automobile insurance (for all vehicles owned, borrowed or hired for business-related purposes), workers compensation insurance, excess liability insurance (or umbrella insurance), loss of income insurance, equipment breakdown insurance, errors and omissions insurance, property insurance and employment practices liability insurance (EPLI) for claims related to discrimination.
Call MFE today at 213-266-7990 or contact them online to learn more about their products.