Software programmers often spend much of their time typing in pages of code that build a program to be used on a computer, server, intranet, or even a mobile device. While they may work in an office space or from their home, they are often a key asset to many different kinds of businesses. With that said, software programmers also hold much responsibility when it comes to what they build for their clients.
Because of the known risks that business owners in any industry face, many computer and software programmers choose to purchase a General Liability insurance plan to protect them against the most common claims risks. Things including bodily injury, damage to property, and personal damage due to slander or libel, are examples of what is covered under General Liability. This is a key element to protecting your business in the long run.
But what about those damages that can occur that have nothing to do with physical property being damaged, bodily injury, or personal injury? What happens when a mistake you make with the task of programming, scripting, or coding creates a financial loss or expense for your customer, and they hold you responsible?
Financial damage, when there are no other damages accompanying it (such as those described above), requires a different policy type for coverage. Technology Professional E&O Insurance compliments your General Liability policy by providing the coverage against common claims you may face as a computer programmer that are not covered under General Liability.
Examples of situations that could lead to a claim covered under Technology Professional E&O Insurance are these:
- The software you develop has bugs, and crashes each time a common action is performed. Your client files a claim against you due to the software not working as promised.
- You neglect to provide training documentation, and a new employee mistakenly deletes important data that becomes irretrievable at that point. Your customer holds you responsible for the financial damage due to the data loss.
- A glitch in the software allows private company information to be accessed from the internet. Your client sues you for the financial damage as a result of the exposure.
These are just a sampling of the various mistakes and resulting consequences that can happen for you as a computer programmer. Regardless of how thoroughly you test your work, there are always cases where a simple mistake, a forgotten step, or an omitted character in the code can cause tremendous fallout with your client.
General Liability is necessary for broad coverage of risks, but Technology Professional E&O is necessary for specific coverage tailored to the risks you face in your industry.
By having both a General Liability insurance policy and a Technology Professional E&O insurance policy, you can feel safe, knowing you have the most comprehensive protection for your industry. Moreover, with both policies available at a combined price as low as $1100 or $110/month, you can get the coverage you need without sabotaging your budget.“As a start-up organization the advice and insight from Insurancefortechs.com was invaluable. Thanks for doing a great job.”Integral IT Consulting, LLC