Website shutdown leads to data loss

THE CONTEXT

In March 2017, during scheduled maintenance on the server hosting a merchant website and a client’s data and software, incorrect instructions from the service provider resulted in the unavailability of the company’s site and data for a few hours. Data from half a day was also lost.

GM CONSULTANT INTERVENTION

GM Consultant intervened at the request of the service provider’s public liability insurance company.

A loss adjuster specialising in IT analysed the situation and the claim presented by the client.

For half a day, the client was unable to make any online sales on its website, the company’s main sales channel.

In addition, it lost all of the data from transactions and data entry for half a day. This situation led to significant organisational problems for the client.

On the basis of our loss analysis, we accurately calculated the financial and operational consequences that had been overvalued by the company that owns the merchant site.

In the end, the dispute was settled by a compensation payment to cover margin loss during the period of unavailability of the merchant website as well as the effort involved in re-entering lost data and verifying its integrity and consistency.