If you're developing systems, as good as you are, there's always a possibility your code goes wrong and causes your client a loss. In which case they may come after you for damages.
Depending if you use an umbrella company or contract directly you may be exposed to IR35 enquiries from HMRC. Regardless of how you're engaged you still could be subject to late or non-payment of invoices.
You are likely to use your own laptop or computer for your work, if that gets stolen or damaged could you afford the repair or replacement costs?
An unhappy client may allege your work ended up costing them money which they now want to recover from you.
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What insurance do software developers need?
Choosing the right insurance for you depends on the size and nature of your business. Key insurance covers software developers should consider include:
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.
What else should form part of business insurance for software developers?
There are two aspects to consider as a software developer. Firstly, whether you’re working from your client’s premises or regularly meeting with them and their staff.
Secondly, is the type of work you’re delivering prone to a cyber security issue?
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 can make a hole in your pocket.
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.
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.
When you decide to protect your business with Suited we want you to get more than just insurance. That's why with every policy subscription we include Business Legal Protect. From the moment you sign up you gain access to extra support services which are all part of our price.
- IR35 & HMRC investigations
- Legal matters concerning your business
- Negative PR (£25,000 cover)
- Criminal prosecution
- Compliance & regulation issues
- Unpaid invoices (over £200)
- Free tax advice
- Free commercial legal advice
- Counselling for you and your staff
- Access to a legal template library
- Identity theft assistance
My work contract requires professional indemnity insurance. Suited were quick to call back and very helpful explaining the product to me. Suited offers a trustworthy, professional service and a peace of mind.
Suited was easy to use, to the point, concise, I found everything I was looking for , was covered. The process was efficient and quick. Fast forms to fill in. I think the price was pretty competitive too.
The fast and hassle free way to get business insurance for small professional outfits.