Insurance for programming businesses

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.