Developing software programs that make our working lives easier is a cornerstone of effective business. Whether you’re operating a business with only a few people or a large software corporation, you need insurance to protect you against the risks that come with developing software. In addition to protecting yourself against the typical risks that come with running any business, insurance for software companies is designed to help you deal with potential lawsuits associated with your software.
If you work in the software industry, you’re probably familiar with securing contracts for certain development projects. Many contracts will specifically address indemnity. For example, if your software product causes a glitch that makes the company lose business and revenue, you can be held responsible. Make sure that you read the contract carefully before signing. If you’re not fully protected with the right kind of insurance and enter into a contract that places full responsibility on the software company, your business can be at risk financially.
Software business insurance provides a protection net that lets you conduct business confidently. This financial protection can cover legal claims against you and help you to keep your business running. There are several types of coverage you may want to consider as you determine the best way to manage your risks.
When running a business, you’ll have standard insurance needs similar to any other type of business, as well as specific needs associated with your industry and niche. Making sure that you have the right combination of both will provide the most comprehensive protection. Some common forms of coverage that every software company should have include the following:
While your software business insurance provides protection for many different circumstances, one issue that is very important to address is your liability risks.
As a software company, you must deal with general and specific liability issues. Ask your Trusted Choice member agent which liability policies are best for your company.
Let’s look at a few situations where your business liability coverage can cover the specific risks of software companies.
Even with safety precautions in place, liability insurance is the best way to deal with unexpected circumstances. Make sure you set the right coverage limits to protect your company assets.
Insurance for software companies is complex, and selecting the right coverage for your specific business risks can be a challenge. You will need to take a close look at how you operate, and the particular exposure your business needs to cover.
Make sure you're working with some helpful professionals who can advise you. Whether you're using colleagues, a lawyer, a financial advisor, or an insurance agent to get information about your options, you will still need to make sure you're checking several quotes before you buy to make sure you're buying an insurance product that is right for your business needs.