Because of the known risks that business owners in any industry face, many computer and software programmers purchase a General Liability insurance plan to protect them against the most common claims risks.
Software programmers spend their time typing in pages of code to build programs to be used on a computer, server, intranet, or even a mobile device. Though they may work from their home rather than an office space, they are often a key asset to many different kinds of businesses and hold a lot of responsibility when it comes to what to build for clients.
General Liability covers things such as bodily injury, damage to property, and personal damage due to slander or libel. This coverage is a key element to protecting your business in the long run.
But what about damages that have nothing to do with bodily injury, personal injury, or property damage? What happens when a mistake you make in programming, scripting, or coding creates a financial loss or expense for your customer,and they hold you responsible?
Financial damage, when accompanied by no other kind of damage, requires a different type of coverage. Technology Professional E&O Insurance compliments a General Liability policy by providing coverage against common claims that are not covered under a General Liability policy.
Examples of situations that could lead to a claim covered under Technology Professional E&O Insurance are:
- The software you develop has bugs and crashes each time a common action is performed. Your client files a claim against you due to the software not working as promised.
- You neglect to provide training documentation, and a new employee mistakenly deletes important data that is now irretrievable. Your customer holds you responsible for the financial damage due to the data loss.
- A glitch in the software allows private company information to be accessed from the Internet. Your client sues you for the financial damage as a result of the exposure.
These are just a sampling of the various mistakes and consequences that can happen to a computer programmer. Regardless of how thoroughly you test your work, there are always cases where a simple mistake, a forgotten step, or an omitted character in the code can cause tremendous fallout with your client.
How to get peace of mind
General Liability is necessary for broad coverage of risks, but Technology Professional E&O is necessary for specific coverage tailored to the risks you face in your industry.
By having both a General Liability insurance policy and a Technology Professional E&O insurance policy, you can feel safe knowing you have the most comprehensive protection for your industry. Additionally, with both policies available at a combined price as low as $1100 or $110 per month, you can get the coverage you need without sabotaging your budget.
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