Professional indemnity insurance for software developers
You back up your work to minimise the risk of mishaps or lost data and you need to take the same approach to your own business protect your livelihood and reputation.
There are many reasons that a case could emerge as a result of your work - everyday if fact if you’ve been writing code for the last few years. Regardless of whether you have done it purposefully, a few things can happen that can make a client troubled and make them sue you.
Copyright encroachment, digital assaults because of a weakness, property harm to a clients property while you are working (for example espresso spilled on a PC), coding blunders, and inability to finish your task on time are only a portion of the things that can be guaranteed by a miserable client.
These are just some examples of the most common claims against software developers by dissatisfied clients.
Try not to have a critical monetary misfortune by investing in quite possibly the key business insurance type - professional Indemnity insurance - which is there to protect you from accusations of wrongdoing, mistakes and other professional errors.
A case of a delayed error riddled project
We can offer an example of a product engineer who entered into a contract with a client to develop a tech capability for the client’s business.
The contractor didn’t finish the project within the two year time frame plus what had been delivered showed a number of slip-ups. At least that was what the client claimed before they walked away from the contract and recruited another developer to finish the product. On top of that the client sued the original contractor for breach of contract and demanded that all of the investment was refunded, by then amounting to some £600,000.
With professional indemnity insurance software developers won't be necessarily immune to those situations but will certainly be able to rely on qualified legal help to guide them through the problem and minimise any financial damage.
Other aspects of business insurance for software developers
Software developers often work as contractors within a larger team but some will work more in a freelancer capacity and as such probably face more risks in the course of their business.
Public liability insurance
Consider whether you’re working from your client’s premises or regularly meeting with them and their staff. Public liability insurance is an inexpensive insurance protection for unfortunate incidents such as damaged property of your client, your equipment causing someone to slip or fall. These claims rarely result in substantial claims but even a few thousands in legal defence costs can make a serious hole in your pocket.
Cyber insurance for software developers
Is the type of work you’re delivering prone to a cyber security issue? Cyber insurance is a very specialised product and even though professional indemnity insurance for software developers may include a little element of it, it’s unlikely to be enough for your line of work.
If your work is exposed to risks of cyber crime, look for a cyber insurance specialist. As a software developer you understand how complex this issue is, and often impossible to explain easily to a third party. You’ll need your insurer provider to have the experience, knowledge and resources to assist you.
Electronic business equipment insurance
In this line of business you are bound to be heavily reliant on all things electronic. Whether this equipment is yours or hired, you will be faced with the cost of repair or replacement, should an accident happen.
The price tag alongside with how and where you use your business equipment is a good guide whether you should consider this cover. For example if your laptop is of the expensive variety and you carry it with you everywhere you go, the risks of losing or breaking it is higher.