Software development is a rapidly growing, multi-billion-dollar industry in the US. If you own a software firm in the Grand Canyon State, protecting it with the right insurance policies can help it stay profitable in times of trouble.
Independent insurance agents in Arizona are available to help you find comprehensive software company insurance at a competitive price. Arrange an obligation-free consultation with an insurance agent near you to learn more.
What Is Software Company Insurance?
Software company insurance is a general term used to describe a business owners policy (BOP) or a business insurance policy package that has been specially customized to meet the coverage needs of firms that develop and publish software products.
Why Is Software Development Company Insurance Important in Arizona?
Every business has some risks, and this is particularly true in the software development industry. The following are examples of a few potential problems that could cause your company to experience large financial losses if it is not properly insured.
- Your quality assurance team misses an error in one of your software products that opens a back door to cybercriminals. A client sues your firm for financial losses suffered because of it.
- A new product your firm has released is strikingly similar to software created by a competing company. They accuse your developers of engaging in copyright infringement and file a lawsuit.
- One of your employees needs to undergo surgery for carpal tunnel syndrome that can be attributed to excessive typing at a keyboard at your place of business. They miss several weeks of work while recuperating.
- An electrical fire breaks out at your office overnight and several computers, desks, chairs, and other property are destroyed. It takes several weeks before repairs are completed and you are able to resume normal operations.
- An employee who hasn’t been promoted accuses your software firm of discrimination and take you to court.
Independent agents can help you identify all of the risks that your software company is exposed to and can recommend the right insurance products to cover against each of them.
How Much Does Software Company Insurance Cost in Arizona?
The cost for insurance can vary from one software company to the next because it is based on several considerations such as the following.
- The size of your company and its expected annual revenues
- The value of your company’s business property and assets
- The number of people you employ
- How long your company has been in business and its insurance claims history
To find out how much a policy will cost for your Arizona software firm, you will need to contact a few competing insurance companies and request customized quotes. Or, if you prefer, you can ask an independent insurance agent to do that on your behalf.
What Does Software Company Insurance Cover?
Your Arizona software company insurance can cover as much or as little as you want it to. This is because insurance companies make it possible to fully customize your policy package to only include any insurance products you believe are necessary.
Read on to learn about some of the insurance products that software companies typically include in their business insurance policy packages.
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What Kinds of Liability Insurance Products Does My Software Company Need?
Here are some of the insurance products that Arizona software companies have in their business insurance policy packages.
- Commercial general liability insurance (CGL): This can cover many of the most common liability risks businesses face. Here are some of the most important aspects of its coverage.
- Premises liability insurance: This can provide coverage if a client or visitor is seriously injured in an accident on your business premises.
- Product liability insurance: This can provide coverage if software products sold by your company are inadequate or faulty and cause your customers to suffer bodily or financial harm.
- Coverage against accusations of copyright infringement: This is especially important for software companies. Whether or not they hold merit, accusations of copying another company’s work can result in expensive lawsuits. This provides the coverage you need.
- Cyber liability insurance: Software firms have an especially high risk of experiencing cyberattacks. For instance, criminals may hack into your computer system to steal sensitive customer data, or they may attempt to install malicious code into your software. This can leave your company exposed to large liability expenses that this insurance can cover.
- Employment practices liability insurance (EPLI): This can cover your company against accusations of illegal employment practices like harassment, discrimination, retaliation, and wrongful termination.
- Errors and omissions insurance: This can protect your software firm if professional services performed by you or your employees cause your clients to experience financial losses. It can also cover lawsuits related to negligence, errors in coding, failure to complete projects on time, non-performance, and other professional errors.
- Directors and officers insurance: This covers the people that make up your company’s senior management and/or board of directors if they are sued for mismanagement, breach of fiduciary duties, or other errors that negatively affect your company or result in stockholder.
When you have coverage against each of your company’s liability exposures, you can rest assured that a lawsuit will not bankrupt your business.
What Property Insurance Products Are Important for Arizona Software Firms?
You have likely invested a lot of money into the computers and other property used by workers at your software firm. It is important that you ensure it is suitably covered. You may want to look into the following types of property coverage.
- Commercial property insurance: This can cover the cost to repair or replace your firm’s property (including things like office furniture, computers, servers, and telecommunication devices) if it is lost or damaged by a covered event such as the following.
- Dust storms
- Monsoons (excluding flood damage)
- Property crimes
- Commercial flood insurance: Flood damage is excluded from coverage by your commercial property insurance, even if the flood is the direct result of a covered monsoon. Fortunately, affordable flood insurance policies are available through the National Flood Insurance Program (NFIP), a program that is managed by FEMA.
- Commercial earthquake insurance: The risk of earthquakes in Arizona isn’t nearly as high as it is in California, however, some parts of this state do experience a moderate quake every 5 to 10 years. If your software firm’s building or property is damaged by a seismic event, earthquake insurance can cover your your losses.
Whatever types of property insurance you purchase for your software firm, you will want to be sure that the coverage limits are high enough to enable you to fully replace your business property if you experience a total loss, such as may happen with a structure fire.
What Other Kinds of Insurance Might My Arizona Software Company Need?
The following are some additional insurance products that you may want or need to include in your policy package.
- Business interruption insurance: This provides your company with a continuation of income if it must remain closed for an extended time while repairs are made to damage caused by a covered event like a tornado.
- Workers’ compensation insurance: This covers the cost to treat your employees’ work-related injuries and can provide disability pay if they must take time off to recuperate. In Arizona, this insurance is required if you have at least one employee. Fortunately, it is rather inexpensive since software development is a very low-risk industry as far as injuries go.
By putting all the coverage your company needs into a single, easily manageable policy package, you can save time and money as well as simplify the claims process if your firm is impacted by a disaster.
Let an Independent Agent in Arizona Help You find the Best Software Company Insurance
Purchasing the right insurance products for your software company can be complicated, especially if you try to do it on your own. Independent insurance agents can help.
These local agents are available to answer your insurance-related questions, explain your various options, and help you find the policies your firm needs at the most competitive prices.
There are more than 400 independent insurance agents in Arizona. Contact an experienced insurance agent near you to get more information and to start comparing customized software company insurance quotes.
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