The US Census Bureau reports that the software development industry generates about $250 billion a year in the US. If you are the owner of a software firm in the Magnolia State, you can help your business stay profitable by protecting it with the right insurance policies.
Independent agents in Mississippi can answer your insurance-related questions and can help you find comprehensive software company insurance at a competitive price. Contact 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 insurance policy package that has been customized to meet the specific coverage needs of companies that develop and publish software products.
What Could Go Wrong at a Software Development Company?
Every business has some risks, and software firms are no exception. The following are examples of expensive pitfalls that can cause your company to experience large financial losses if it is not properly insured.
- An error in one of your software products is overlooked by your quality assurance team, and a client sues your firm for financial losses suffered because of it.
- A competing software company accuses your developers of engaging in copyright infringement after reviewing a new product you have released.
- One of your employees is diagnosed with carpal tunnel syndrome and it can be attributed to their job at your company. The worker needs to undergo surgery and misses several weeks of work while recuperating.
- Hurricane-force winds blow out the windows of your offices and the interior, including computers and files, are damaged beyond repair. It takes several weeks before you are able to resume normal operations.
- An employee that you had to let go accuses your firm of wrongful termination and takes you to court.
Independent agents can help you identify each 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 Mississippi?
Coverage costs can vary from one software company to the next because they are based on several factors such as the following.
- The size of your company and its expected annual revenues
- How long your company has been in business and its claims history
- The value of your company’s property and assets
- The number of workers you employ
- The weather risks where your company is located
The only way to find out how much a policy will cost for your Mississippi software firm is by contacting a few competing insurance companies and requesting customized quotes.
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What Does Software Company Insurance Cover?
Your Mississippi software company insurance can cover as much or as little as you want it to. This is because you can fully customize your coverage to only include any insurance products you believe are necessary.
Here are some of the products you may want to include in your policy package.
- Commercial general liability insurance (CGL): This can cover your software firm against many of the most common liability risks businesses face. Some of the most important aspects of its coverage include the following.
- Premises liability insurance: This can cover related costs if a visitor to your office is seriously injured in an accident on the premises.
- Product liability insurance: This can cover liabilities if software products sold by your company are inadequate and cause your customers to suffer seriously financial losses or other damage.
- Coverage against accusations of copyright infringement: This is a common problem with software companies. If your firm is accused of copying another company’s work, you may end up facing and expensive lawsuit.
- Commercial property insurance: This can cover the cost to repair or replace your firm’s property (including things like computers, servers, office furniture, and telecommunication products) if it is lost or damaged by a covered event like theft, fire, or severe weather.
- Business interruption insurance: This can provide your company with a continuation of income if it must remain closed for an extended time due to damage caused by a covered disaster like a tornado or hurricane.
- Employment practices liability insurance (EPLI): This can cover your company against accusations of illegal employment practices like discrimination, harassment, 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: The can cover your company’s upper management if they are sued for mismanagement, breach of fiduciary duties, or other errors that negatively affect your company or result in stockholder losses or other problems.
- Cyber liability insurance: Software firms have a particularly high risk of experiencing cyberattacks. Whether criminals are hacking into your computer system to steal sensitive customer data or they are attempting to install malicious code into your software, this can leave your company exposed to large liability expenses that this insurance can cover.
- Workers’ compensation insurance: This can cover the cost to treat injuries your employees may experience on the job and can provide disability pay while they recuperate. In Mississippi, this insurance is required if you employ at least five regular workers.
- Commercial flood insurance: This is important because flood damage is excluded from coverage by your commercial property insurance, even if the flood is the direct result of a covered hurricane. Fortunately, affordable policies are available through the National Flood Insurance Program (NFIP).
When you have coverage against each potential risk your company faces, you can rest assured that an unexpected disaster will not bankrupt your business.
An Independent Agent in Mississippi Can Help You find the Best Software Company Insurance
Buying the right insurance for your software company can be complicated, especially if you try to do it on your own. Independent insurance agents are available to answer your questions, explain your various options, and help you find the coverage your firm needs at the most competitive prices.
There are more than 200 independent insurance agents in Mississippi. Set up an obligation-free consultation with an experienced insurance agent near you to get more information and to start comparing customized software company insurance quotes.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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