Insurance for programming businesses
Who needs programming liability insurance?
If you have a computer programming business, you probably spend hours typing pages of code into programs for your clients. And, if you work in IT, you know the importance of safeguarding your work. Because clients rely on your expertise, it’s imperative that you keep all computer systems operational and not vulnerable to cyberattacks. It only takes one weak password or missing data encryption for you to become the target of a lawsuit. Here's an example.
Let's say you're offering consulting services to a bank and upgrade their software and virus protection. But, you forget to include a section in your training manual on common vulnerabilities to avoid. A staff member mistakenly clicks on a phishing email that looks legitimate but it installs malware and cyber thieves steal sensitive bank data. The bank might sue you for financial damages even though you’re not at fault. Your insurance policy protects you from risks like this.
Insurance can cover the following risks:
• Computer systems, equipment and property damage.
• Injuries or damage when hauling, installing or moving equipment.
• Cyber-attacks and online data breaches.
• Services you offer that lead to a loss of revenue or data.
• Professional negligence or giving bad advice.
As an IT professional or programmer, reducing losses can help improve your business reputation. And, it can keep your services in high demand. Because you're exposed to different sorts of risks than other professions, Hiscox offers several types of specialized insurance.
Other IT professions we insure
Types of programming insurance policies available
For most businesses, there are four basic types of liability insurance policies available. They let you confidently take the right risks so you can protect your programming business.
Professional liability insurance is also referred to as errors and omissions (E&O) insurance. This is coverage for claims against businesses that provide professional and personal services. It includes programming businesses like yours. Having this type of liability insurance can protect you from lawsuits and claims. Here is an example.
A programmer designs a new website for an e-commerce client. On the day that the new site goes live, it immediately crashes due to an error in the code. It takes the programmer three days to find and correct the mistake and get the site up and running. In the meantime, the client loses thousands of dollars in business, so they sue the programmer to recover the lost revenue. The programmer’s professional liability insurance policy could cover the cost of the client’s lost business, including the defense costs for the programmer.
In another example, a programmer makes improvements to a client’s website to improve the time it takes the site to load. The client expects this will improve their search results, but after several months, they see no change. The client sues the programmer, claiming that they did not do enough to speed up the site. The programmer’s professional liability insurance policy will protect the programmer, even though they didn’t make a mistake.
General liability is also called Commercial General Liability (CGL). This insurance helps you avoid financial losses from lawsuits. Your business is vulnerable to risks because you're working with sensitive client data that could be damaged or erased.
In today's world, there are many frivolous lawsuits. It’s one reason why your CGL is a safeguard and the best investment. For example, you send a new IT tech to help with a client's technical problems. The tech spills a cup of coffee on the client’s server and a large amount of data is lost. Your general liability insurance policy could cover the cost of recovering the data.
Another example is if a client comes to your office to discuss a new project, and they slip and fall on a wet floor. The client suffers a concussion, needs to go to the hospital and is instructed to take two weeks off work to recover. Your general liability policy could cover the client’s medical expense and lost wages.
Learn more about how much general liability insurance costs.
Some small business owners may think that general liability insurance covers their own property, but it does not. This is when a Business Owners Policy or BOP may be helpful for a business. BOP offers the same protection of General Liability with the added layer of protection for the business’s own property. For example:
Say a programmer spills water on a high-end laptop causing irreparable damage to the device. A business owner’s policy could cover the cost to replace the laptop which would allow the programmer to get back to work quickly.
Another example would be if a programmer had a home office and a fire erupted. The fire spread to the home office and damaged the programmer’s work computer. The home owner’s policy would not cover the programmer’s computer, but BOP insurance would replace the computer.
Learn more about business owner policy insurance.
Cyber security insurance protects programming businesses against computer-related crimes and losses. This can include targeted attacks, such as malware and phishing, as well as the occasional misplaced laptop containing confidential material.
Learn more about cyber security insurance.
Why do programming professionals choose Hiscox?
At Hiscox, we know it’s challenging enough to complete programming code in a short period of time. It's also challenging working for yourself in a competitive environment. And, that's why we’re here to help. Our small business insurance policies give you extra support so you can take the right risks (without all the bugs).
Here's why other IT and programming professionals choose Hiscox:
- Claims responsiveness: Reporting a covered claim? Hiscox immediately assigns an agent to assist you.
- Commitment to service: We rank 4.8/5 for customer service.
- Coverage for contracts: Our coverage satisfies most standard contract insurance requirements.
- Custom insurance: We specialize in businesses like yours specific to your risk factors.
- Flexible payment options: We offer annual or monthly payment plans without additional fees.
- Worldwide coverage: Hiscox covers businesses that work globally as long as the claim is filed in the U.S., a U.S. Territory or Canada.
Get a fast, free quote now and get that Hiscox confidence behind your business. If you prefer, you can call us at 1-866-283-7545 and speak with a Hiscox licensed agent, Monday – Friday, 7am – 10pm ET.
This information is provided to assist you in understanding the coverage we offer and does not modify the terms and conditions of any insurance policy, nor does it imply that any claim is covered. Coverages are subject to underwriting and may not be available in all states.