If you are a software developer, then you need specialist insurance that can protect you throughout the development process.
What is software developer insurance?
Software developer insurance is designed for IT professionals and contractors who are working in the software development industry. As a software developer, you will be facing a lot of risks whether you are upgrading a standard software or developing new apps. Having tailor-made insurance can protect you every step of the way. It can cover you in the event that you or your business will be sued due to an injury, damage to property or negligence.
Why do you need software developer insurance?
Clients hire you due to your expertise. They expect that you can deliver a superior product because of your skills and experience. But what if the product that you deliver did not match the standards of your clients. When this happens, then you might be held liable for the damages and financial losses of your client.
If you don’t have the right software developer insurance, then you will have to pay for the legal costs of defending yourself and for the compensation cost that will be awarded to your client out of your pocket.
What can be covered by software developer insurance?
There is a wide range of cover that is available for software developers. You can either choose to have public liability insurance, employers’ liability insurance, professional indemnity insurance and other types of insurance covers that are essential for your profession or business.
All of these covers are designed to protect software developers in the event that unforeseen incidents can happen. For instance, you have accidentally spilled coffee on the laptop of your client. As a result, the client demands that you should pay for the repair cost of the laptop. If you have public liability insurance, then you don’t have to pay for the repair cost out of your own pocket.
What if you accidentally use a copyrighted image without the owner’s consent while you are in the development stage? If so, then most likely the owner of the image will sue you for infringing copyright. Another case would be if you’ve made a mistake in the software platform that you’ve developed, and it was discovered several months after the project was completed. When this happens, the client will take some legal action and demand that you will pay for the cost of the damages. Both of these incidents can be covered by professional indemnity insurance.
Professional Indemnity Insurance
Professional indemnity insurance can pay for the legal cost of defending yourself in case your client will sue you for professional negligence, for instance, if you have provided them with inaccurate advice. In case you were unsuccessful in your defense, then you don’t have to pay for the cost of damages that will be awarded to your client since it will be covered by your insurance.
It can also cover claims against breach of contract. For instance, a client hired you to develop a certain component of a system and you were given a specific deadline to finish the work. Unfortunately, you miss your deadline. As a result, the client sued you for the delay since it incurred an additional cost.
If your client sues you for negligence because the system that you developed was not successful, then you don’t have to worry since this can be covered by this type of insurance.
Public Liability Insurance
Public liability insurance is very useful whenever a member of the public claimed that you have caused an injury or illness to them. Likewise, it can also cover damage to the property of a client or a third-party.
How to obtain your software developer insurance?
Covering your business is very important. You can start by gathering several quotes and choosing the best insurance cover that fits your needs and your budget. After acquiring your insurance, the insurer will send you your policy and proof of insurance. You can show these documents to your clients to prove that you are insured.
How much does a software developer insurance cost?
The cost of your software developer insurance will greatly depend on a lot of factors. For instance, the covers that you choose to add on your policy as well as the limit of your cover.
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