With two other partners, Ahmed develops websites for companies. Their company is very new and, after several small projects for a few small and medium-sized companies, they have just landed a big contract with a large cosmetics group. However, in his enthusiasm, Ahmed forgot to read the document detailing the terms of their agreement, which contains some very restrictive clauses.
In general, service contracts are imposed on very small companies, which will find it more difficult to negotiate,” explains Anaïs Maffeïs, an expert in the IT and digital sectors at Hiscox Assurances. However, they must be aware that their responsibility will be engaged. We focus on making the insured aware of this aspect as much as possible before signing. “
Unfortunately, Ahmed and his colleagues soon realized that the site could not be delivered on time. But the large group in question was launching a new line of perfumes and was counting on this showcase to target a young audience. Digital technology is therefore the cornerstone of their business strategy. What’s more, the three partners realize that the loss of revenue generated by the delay could affect their accounting. Indeed, the company, which will not be able to launch its site on the planned date, will certainly ask to be compensated for the damage it will suffer.
Faced with this type of situation, which could destroy the climate of trust established between the two parties, Hiscox advises its insureds to take the initiative and warn the client rather than presenting him with a fait accompli. To avoid a costly inflation of the damages suffered by the cosmetics group, Hiscox covers the costs of two additional coders in order to finalize the service as soon as possible. “The more we are informed upstream, the faster we will be able to react,” says Anaïs Maffeïs, “We put in the additional resources that allow us to deliver as quickly as possible to limit the customer’s claim and therefore lower the impact of financial losses for the end customer.”
Hiscox will also take care of the indemnities, the amount of which can be negotiated amicably if the delay remains under control. In Ahmed’s case, it is three weeks, which could lead to a penalty of €1,000, plus the daily remuneration of a developer.This is in addition to the daily fee for an additional developer, which amounts to €800, or nearly €17,000. In the end, Hiscox Assurances will have enabled Ahmed to avoid a dispute and to preserve the commercial relationship with his client.
