Computer Programming Insurance Policy Information
Computer Programming Insurance. As an IT expert and computer programmer, you face the same risks (and different ones) that every other business faces.
This applies in particular if you provide consulting services, for instance, Levi Strauss Company, the jean maker took legal action against Deloitte IT consulting firm after the software designed to control payrolls and inventory failed. The Deloitte IT Company was in turn forced to pay damages amounting to $100 million.
With so many companies depending on computer systems to run operations efficiently, you could be the target of lawsuits if your services do not meet client expectations. Due to the nature of your profession, it is best to get a computer programming insurance policy that will help you in offsetting your personal risks and protect your firm.
Computer programming insurance protects your firm from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked computer programming insurance questions:
- What Is Computer Programming Insurance?
- How Much Does Computer Programming Insurance Cost?
- Why Do Computer Programmers Need Insurance?
- What Type Of Insurance Do Computer Programmers Need?
- What Does Computer Programming Insurance Cover & Pay For?
What Is 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.
How Much Does Computer Programming Insurance Cost?
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.
Why Do Computer Programmers Need Insurance?
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.
What Type Of Insurance Do Computer Programmers Need
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.
Computer programming insurance may seem like an unaffordable or unnecessary overhead that stresses an already tight budget. As a result, if you decide to buy an insurance policy you might be tempted to save money by selecting a higher deductible which is the amount of money you pay out before accruing benefits.
But it's important to keep in mind that you should not choose a deductible that is higher than what you can afford comfortably. If you cannot meet the expense of your deductibles, your coverage does not exist in the sense you will be outof pocket for a large amount and that defeats the purpose of the insurance.
What Does Computer Programming Insurance Cover & Pay For?
There are several reasons why computer programmers may face lawsuits, including:
- 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.
- 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.
- 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.
- 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.
- 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.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7371 Computer Programming Services
- NAICS CODE: 541511 Custom Computer Programming Services
- Suggested Workers Compensation Code(s): 8803 Auditor, Accountant, or Computer System Designer or Programmer - Traveling, 8810 Clerical Office Employees NOC
Description for 7371: Computer Programming Services
Division I: Services | Major Group 73: Business Services| Industry Group 737: Computer Programming, Data Processing, And Other Computer Related Services
7371 Computer Programming Services Establishments primarily engaged in providing computer programming services on a contract or fee basis. Establishments of this industry perform a variety of additional services, such as computer software design and analysis; modifications of custom software; and training in the use of custom software.
- Applications software programming, custom
- Computer code authors
- Computer programming services
- Computer programs or systems software development, custom
- Computer software systems analysis and design, custom
- Computer software writers, free-lance
- Programming services, computer custom
- Software programming, custom
Computer Programming Insurance - The Bottom Line
Even comprehensive legal contracts cannot protect you in all scenarios. Computer programmer insurance is, therefore, a vital tool that can be tailor-made to meet your business protection needs.
Additional Resources For Information Technology & Internet Insurance
Learn about small business IT technology insurance policies that help protect IT businesses, consultants & subcontractors from the unique risks that small tech businesses face when they work.
- Application Development
- Amazon Seller
- Artificial Intelligence
- Computer Electronic Repair
- Computer Programming
- Computer System / Network Developer
- Cyber Liability
- Data Breach
- eBay Sellers
- Electronic Data Processing
- Electronic Data Processing Equipment
- Internet Business
- Internet Service Provider
- IT Consultant
- Online Store
- Social Media
- Software Developer
- Technology Services
- Website Design
- Specialty Computer
The information technology (IT) industry is constantly evolving and adapting to new technologies and trends. It is a critical component of many businesses and organizations, as it helps them to communicate, store data, and operate efficiently. However, the IT industry also faces unique risks and challenges that can lead to financial losses, legal issues, and damage to reputation. This is why it is essential for IT businesses to have commercial insurance to protect their assets and interests.
One of the main risks that IT businesses face is data breaches and cyber attacks. Hackers can gain access to sensitive information stored on a company's servers or systems, leading to data theft, identity theft, and other crimes. Insurance can provide coverage for these types of events, helping IT companies to mitigate the financial and legal consequences.
Another risk that IT businesses face is the possibility of equipment failure or malfunction. This can result in downtime and lost productivity, which can have a significant impact on a company's bottom line. Commercial insurance can help IT businesses to cover the costs of repairs and replacements, as well as any lost revenue or expenses incurred due to the equipment failure.
IT businesses may also face legal issues, such as intellectual property disputes or contract disputes with clients. Insurance can provide coverage for legal fees and damages, helping IT companies to defend their interests and protect their reputation.
Overall, the IT industry needs business insurance to protect against the many risks and challenges it faces. Without adequate coverage, IT businesses may be vulnerable to financial losses and legal issues that could impact their operations and success.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Computer Fraud, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Errors and Omissions Liability, Professional Liability, Umbrella Liability, Hired and Nonowned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Real Property Legal Liability, Forgery, Cyber Liability, Employment-related Practices Liability, Directors and Officers Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.