Buy Computer Programming Insurance

Computer programming insurance is a type of insurance coverage designed to protect businesses and individuals that provide computer programming services. It provides protection against claims made by clients or third parties who may suffer loss or damage as a result of errors or omissions in the software or programming work provided.

This insurance covers the cost of defending against these claims, as well as any financial settlements that may result. It is important for those in the computer programming industry to consider this coverage to protect against potential financial losses.

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small computer programmers ranges from $27 to $39 per month based on location, size, payroll, sales and experience.

Computer programming insurance is a type of commercial coverage that is specially meant to deal with the unique risks that are connected to professional IT careers and computer programmers.

Irrespective of whether you own your own IT business or work as a freelance IT expert it is important for you to safeguard your business from the risks of the trade. To ensure you are getting the proper computer programmer coverage you will need to assess the risks that you are likely to face in your line of work.

As a computer programmer, you are also subject to different risks from those faced by other companies. The following types of computer programming insurance coverage will, therefore, assist you in addressing these risks:

General Liability and Property Insurance: Just as any other business you need a computer programming insurance policy for your physical assets such as supplies and equipment as well as coverage for client and customer injuries due to negligence or accidents. Injuries and negligence often result in medical lawsuits that could be expensive for your company.

On the other hand, if you are a freelance programmer you may qualify for a Business Owner's Policy (BOP) which bundles both general liability insurance and property coverage for a single discounted premium. The General liability segment of the policy protects you against allegations of property damage and third party injuries while the property section protects your equipment.

Cyber Liability: The major difference between an IT business and other companies is the amount of cyber liabilities they are prone to encounter. Cyber crime is one of the most severe and expensive risks that may threaten your programming business.

You could be held responsible for numerous types of damage linked to data tampering, invasion of privacy, data breaches, malware and regulatory action.

There are some cases where large technology companies are forced to pay up data breach settlements amounting to millions of dollars. Small IT companies might think they are not as vulnerable to cyber threats as big firms; however, this is a mistaken belief due to the following reasons:

• Small IT companies including freelancers characteristically have few resources to devote to cyber security.
• Programmers often have access to lots of valuable and confidential information belonging to the clientele they serve.
• Lastly, data thieves perceive small companies and freelancers as easy targets for information mining.

Errors and Omissions Insurance: Also know as professional liability. Cyber-crimes are not the only hazard that threatens your programming business. You are also held legally liable negligence, for any advice you offer, anything you forget to do and any work you perform.

So if you recommend an innovative software to a client and this program causes their systems to crash you could be sued for the damages or monies lost during system failure. To shield yourself against such overheads you will require a solid computer programming insurance E&O coverage that will pay for the legal expenses associated to such accusations.

There are several reasons why computer programmers may face lawsuits, including:

1. Intellectual property infringement: Computer programmers may be sued for copyright infringement, trademark infringement, or patent infringement if their software or code is found to be using someone else's intellectual property without proper authorization. Insurance, such as intellectual property liability insurance, can help protect computer programmers by covering the costs of defending against such lawsuits, including legal fees, damages, and settlements.
2. Breach of contract: Computer programmers may be sued for breach of contract if they fail to deliver software or services as agreed upon in a contract. This can include issues such as missed deadlines, failure to meet performance requirements, or failure to deliver promised functionalities. Professional liability insurance, also known as errors and omissions (E&O) insurance, can help cover the costs of defending against breach of contract lawsuits, as well as any damages awarded to the plaintiff.
3. Data breaches and cybersecurity incidents: Computer programmers may be sued if their software or code is found to be responsible for a data breach or cybersecurity incident that results in the unauthorized access or theft of sensitive data. Cyber liability insurance can provide coverage for costs associated with investigating and mitigating data breaches, as well as any legal claims arising from the breach, such as lawsuits filed by affected parties.
4. Defamation or libel: Computer programmers may be sued for defamation or libel if they make false statements about an individual or entity in their software or code that causes harm to their reputation. General liability insurance can provide coverage for defamation or libel claims, including legal defense costs, damages, and settlements.
5. Product liability: Computer programmers may be sued if their software or code causes harm or damage to users, such as software glitches or malfunctions that result in financial losses, property damage, or personal injury. Product liability insurance can help protect computer programmers by covering the costs of defending against product liability claims, as well as any damages awarded to the injured party.

In all of these examples, insurance can help pay for the lawsuit by providing coverage for legal defense costs, damages, settlements, and other expenses associated with defending against a lawsuit. It's important for computer programmers to carefully review their insurance policies and ensure that they have appropriate coverage in place to protect themselves against potential lawsuits that may arise in the course of their work.