What Coverages Are Available Through Software Business Insurance?
As mentioned, software business insurance typically offers multiple coverages. Some of the property and liability coverages that a policy might offer include:
- Commercial Property Coverage, which may cover firm-owned buildings, equipment and other assets
- Tenants Betterment Coverage, which may cover firm-made improvements to a leased office
- Inland Marine Coverage, which may cover firm-owned equipment if it's transported between locations
- Business Interruption Coverage, which may cover revenue losses that are caused by certain disasters
- General Liability Coverage, which may cover basic accidents occurring on a firm's premises
- Professional Liability Coverage, which may cover errors in work and incorrect advice
- Cyber Liability Coverage, which may cover data breaches, hacking attempts and other online risks
- Commercial Umbrella Coverage, which may add another layer of liability protection
Firms that use a vehicle for on-site services likely also need commercial auto coverage, and there are still other coverages that policies might offer. An agent can go over all available protections.
Should Individual Software Developers Have Software Business Insurance?
Individual software developers who are self-employed ought to consider purchasing a software business policy. Even if developers work for make home office, homeowners insurance generally doesn't extend coverage to business activity. A software business policy is thus normally necessary to ensure even self-employed software development.
What Sorts of Incidents Are Covered by the Professional Liability Protection in a Software Developer Policy?
The specific protections afforded by any individual software policy’s professional liability coverage depend on the terms of that policy. Nonetheless, many policies provide coverage for incidents like the following:
- Failure to complete project by given deadline
- Program glitch resulting in lost revenue for client
- Program vulnerabilities resulting in hacking of clients system
- Completed project fails to meet contractual obligations
How Much Do Premiums for Software Development Policies Cost?
Premiums for software development policies are based on many factors, and therefore often vary. The best way to determine how much insurance would cost in a particular situation is by comparing policies with an independent insurance agent. Independent agents aren't obligated to promote any one insurer, and can help developers compare policies across several companies.
How Can Massachusetts Software Firms Get Software Developer Insurance?
For help finding software developer insurance in Massachusetts, contact The Independent Insurance Agents at The Feingold Companies. Our agents will review your situation in order to determine coverage needs, and then they will work closely with you to find a policy that adequately meets those needs. With our assistance, you can be confident that your software firm is well protected.
