Deadline delays led to Viraj’s IT company facing a claim for their client’s financial loss

Our customer, Viraj, owns an IT company that specialises in website design and development. After one project stated to experience a series of glitches, their client pursed legal action.

A client of his enlisted him and his team to maintain their existing website and to build a brand new one. Unfortunately, Viraj hit some unexpected roadblocks when completing the project, resulting in delays to the delivery of his client’s new website.

Understandably, the client wasn’t happy with the hold up, especially as it meant that their business missed out on what they claim to be the most lucrative trading period of the year – leading to a loss of almost £1 million. The client made a formal claim for the financial loss their business suffered.

As a Hiscox business insurance customer, Viraj was able to enlist out help to assist him through the claims process.

While Viraj accepted that the work was not delivered on time, he did not believe that it was his business’ fault that his client had suffered a financial loss. He was eager to wrap up the case before it became too drawn out, however, and wanted to free up his time to focus on growing his business again.

The claim was eventually settled at a mediation for a fraction of the sum originally claimed by the client. Viraj had a policy which was designed around the risks of the IT industry, without this, the claim could have been devasting.

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