Software is a key part of running almost any modern business smoothly and efficiently. As a software or web developer, IT consultant, or hardware designer, you regularly write, modify and test technology based on the needs of your clients. Whether you work independently or as part of a large software corporation, a minor error or miscommunication on a client project has the potential to become a huge liability.
If you operate a business that develops software, you are familiar with contracts that are created for the different development projects you work on. Without the right insurance protection in place, these contracts can leave your business at risk financially. As well, these contracts often require developers to carry a variety of insurance coverage, so having the right program in place in advance will allow you to be prepared when your client asks you to show proof of coverage.
What are some scenarios that can result in an insurance claim?
- You failed to complete a project by the deadline set in your contract. This results in lost revenue for your client and they file a claim against you.
- You are responsible for a coding error that results in a security vulnerability in your client’s software. This eventually leads to a cyber attack and your client sues you for the resulting damages.
- You are fixing a problem with your client’s computer at their business location and accidentally spill coffee on their computer. Your client charges you for the damages caused to their computer system, as well as their lost revenue for any downtime.
Regardless of the safety precautions you take to prevent these scenarios from happening, mistakes can still occur. Having a comprehensive software development insurance program is the best way to deal with unexpected circumstances – so you can conduct your business confidently and keep your clients happy.
There are several types of coverage to consider that will help manage your risks:
- General Liability
- Commercial Property
- Technology Errors & Omissions (E&O)
- Cyber & Data Loss
- Business Interruption
As an insurance brokerage co-founded by a software engineer and cyber security expert, we understand the unique challenges faced by software and technology companies and provide customized insurance programs designed specifically for your business. To get started on a quote today, contact us at 1-866-387-FUSE (3873) or visit our Technology Insurance page.
