Software Developer Insurance Illinois (Quotes, Cost & Coverage)

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Frequently Asked Questions About
Commercial General Liability Insurance

How much does commercial insurance cost?

Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.

What kind of business insurance do I need?

Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.

What is a Certificate of Insurance?

A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.

Is business insurance tax deductible?

Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.

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Software Developer Insurance Illinois

IL Software Developer Insurance

Software Developer Insurance Illinois. Software developers of customized products analyze their clients' software needs, work closely with the clients' internal computer staff and end users, program and test the final product. They may also advise or arrange for the purchase of the appropriate hardware, networking peripherals or similar items.

One of the cornerstones of successful businesses is the software that helps it run smoothly and efficiently. If you operate a business that develops software, then you need to be aware of the specific liability risks that can affect your business and your assets if you are ever found liable for a data breach - an event that can potentially devastate a business that is not properly insured.

In addition to coverage for possible breaches in data, software businesses, like all businesses, must also insure themselves against other perils that come along with business ownership and potential claims that may arise from the use of the software that your company develops. There are a wide range of professionals and businesses who should consider software development business insurance for the what-if's involved in the business. These include software developers, IT project managers and consultants, application service providers, system designers, website developers, hardware installation experts, and computer programmers, among others.

Software developer insurance Illinois protects your tech business from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.

How is Software Business Insurance Different from Other Types of Insurance?

If you are familiar with the software industry, then you likely understand the process of securing contracts for the development of certain projects. Some contracts specifically address issues of indemnity. For instance, if a product that you design results in a glitch that causes the loss of revenue and business for the company that contracted you to make the software, then you are held liable for that loss. However, with the right type and level of software developer insurance Illinois protection in place, you are protected from the fallout of your responsibility, and claims arising from such losses will not put your business at financial risk.

Insurance for software businesses provides a safety net that lets you confidently conduct business. This valuable coverage can pay for legal claims and awards against you, and it can help you maintain your business without a financial setback. Some types of software developer insurance Illinois coverage to think about as a development company that can help you mitigate your inherent risks are fairly straightforward and standard, while others are industry-specific. By finding the right mix of both when working with a seasoned insurance agent, you keep your business on the right track and moving forward.

Some specific types of coverage that can protect your business from claims and related loss include:

  • Data breach coverage. When customer data is breached, stole, lost, or compromised, this coverage can help you address the legal fallout, covering expenses so that your liability doesn't negatively impact your business operation. It can also help you to meet any legal regulations that are imposed on your business, since it may be a required coverage type, based on the software you develop.
  • Commercial property insurance. Protect the IL facility in which you do business and any collateral you have in the business with this type of insurance.
  • Loss of business coverage. If you are forced to close down operations for a covered peril, then this coverage helps to replace the income lost, enabling you to continue operation.
  • Worker's compensation. IL state regulations mandate the purchase of this type of coverage for all non-owner employees. It pays monetary compensation and medical costs for employees who become ill or injured due to a work-related event.

Other Software Development Coverages

Limiting your liability and mitigating the risks involved in the operation of your software development business is a tricky matter. Working with an agent who understands the software development niche can help. Agents generally recommend the following types of software developer insurance Illinois liability coverage for businesses like yours:

  • Professional liability coverage. Errors and omissions policies or professional liability policies covers damages that arise if your performance fails to satisfy the client's expectations. Oftentimes, this type of insurance is purchased with a copyright infringement rider.
  • General liability. If an accident happens on your property, this type of coverage pays for medical bills and associated costs.
  • Business owner insurance. This type of policy, sometimes called a BOP policy, combines the above general liability and property coverage into one.

General liability insurance: Accidents happen and this software development policy can protect you if you're held responsible. If a client slips and falls while on your property, you're accused of libel or slander, or you cause damage to someone else's property, this insurance can provide compensation to the damaged party or cover your legal defense and fees.

Business owner insurance: Commonly referred to as a "BOP," this combines general liability insurance with property damage coverage.

These policies are essential in a number of situations. Some possible scenarios where software developer insurance Illinois liability coverage can be a godsend include:

Your network management team takes on a gig to upgrade a business' infrastructure, but they miss the deadline because of management breakdown issues. This results in the client losing money, and the client files suit against the service provider as a result.

You are a software vendor who provides software and hardware for a business to record its employee hours. A glitch in the system you install results in employee hours failing to properly record. The system overpays some employees and underpays others. The time clocks require replacement, and claims are filed against you.

You sell a defective computer system to a store; the system does not have the right security precautions on board, and a hacker eventually hacks the database and steals credit card data belonging to customers. The store files a claim against you.

Ilinois Software Developer's Risks & Exposures

Premises liability exposure is minimal since most client contact is done electronically or by mail. Off-premises exposures arise from sales visits, training sessions, and installation of software or hardware at the customer's premises. There should be policies and training regarding acceptable off-premises behavior.

If the developer works on the client's computer, the client's property could be damaged, either the actual hardware or by corrupting code on the existing software. Personal injury exposures arise from breach of confidentiality as employees dealing with clients have access to their records.

Professional liability and errors and omissions exposures are extensive but vary by the type of software and its intended use. If the customized software is essential to the business's operation or used to provide safety services, the errors and omission exposure will be higher as there may be long-term consequences.

Workers compensation exposure is limited to that of an office, although there may be significant off-site work. As work is done on computers, potential injuries include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be addressed through ergonomically designed workstations. Back sprains and strains can result from lifting and other material handling if there is any moving of computers or related equipment.

Property exposures consist of an office operation, as well as any incidental storage and areas for service work on computers. Ignition sources include extensive electrical wiring to support computers and servers, heating and air conditioning systems, wear, and overheating of equipment. Fire, smoke, and water can cause significant damage to equipment. Fire protection should consist of chemical applications instead of water.

Although computer equipment can be included as part of the business personal property coverage, more complete protection is available under a computer or EDP policy. A detailed emergency plan should be in place since downtime is not an option. Extra expense coverage is needed more than business income due to contract deadline dates and should be purchased as a part of the EDP policy. The concentration of electronic equipment may be targeted by thieves. Appropriate security controls should be taken including physical barriers to prevent access to the premises after hours and an alarm system that reports directly to a central station or the police department.

Equipment breakdown exposures are typically moderate. Climate control is essential to proper computer function, and breakdown of the air-conditioning units may cause serious loss. There is also significant potential for direct or indirect loss due to computer breakdown or damage by power surges and power failure, affecting hardware, data, and media. Coverage may be addressed under either an EDP or equipment breakdown policy.

Crime exposure is from employee dishonesty and computer fraud. Developers may have access to private financial information of their clients, especially for billing purposes, and represent a target item for identity theft. Hazards increase in the absence of proper background checks and monitoring of the insured's workers who may have such access.

Inland marine exposure includes accounts receivable if the programmer offers credit, computers, and valuable papers and records for customers' information. A computer or EDP policy is critical since it covers hardware, software, and media. There should be frequent backup and off-site data storage. Typically the developer works at the client's premises, presenting transit and off-premises exposures.

There is a high risk of theft, both of portable hardware such as laptops and handhelds and of the software programs. Extra expense is an important option to purchase because of the need to quickly return to operation after a loss and meet contractual obligations. Information used to document the programming is not software and must be insured as valuable papers or its digital equivalent. All contracts, documentation, software design, copyrights, and patents, on paper, disks or other media, should be duplicated and the duplicates should be kept off site.

Business auto exposure may be limited to hired and non-owned. There will likely be extensive off-premises work by sales representatives, programmers, and technicians. The developer may have a fleet of private passenger vehicles, require that employees use their own vehicles, or may use rental vehicles. If vehicles are provided to employees, there should be written procedures in place regarding personal use by employees and their family members. All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained and records kept in a central location.

Choosing The Right Policy

Regardless of the precautions you take to avoid these scenarios, things happen. Be sure to protect your IL development company with the most comprehensive software developer insurance Illinois policy possible. Protect your company and its assets by talking about your situation with your insurance agent, who can craft a policy that is custom tailored to your software business' particular needs.

Illinois Economic Data & Business Insurance Requirements

For moguls who are thinking about conducting business-related affairs in Illinois, it's important to have an understanding of the state's economic outlook. It's also a wise idea to familiarize yourself with the regulations regarding IL commercial insurance.

Made In Illinois

Here we provide some insight regarding the data that pertains to economy of Illinois. We also provide a brief overview about the types of commercial insurance coverage business owners are required to invest in, or should invest in, even if it isn't mandatory.

Business Economic Trends In The State Of Illinois

According to several reports that compile the economic data for each of the 50 states and compare that information to the national average, Illinois isn't in the best position. While there has been some improvement, the gains have only been slight. Income and employment rates have risen, and the housing market has increases; however, the gains in these areas have been minimal, especially when compared to the gains that other states have experienced.

While the unemployment rate has improved, falling to 4.8 percent in 2017 after it was stuck at a rate of almost 6 percent in 2016 and 2015, it appears that in reality, the IL labor force and employment gains are contradicting. In 2018, tens of thousands of people fell out of the state's labor force.

Looking to the future, it is predicted that while the employment rate in Illinois will grow, the rate at which it will grow will be much lower than the national average. Currently the projected annual job growth of the state is .5 percent. Following are some of the largest industries in IL.

  • Agriculture
  • Exports
  • Manufacturing
  • Mining
  • Service Industries
Illinois Commercial Insurance Regulations

The Illinois Department of Insurance regulates insurance in IL. Businesses are required to carry workers compensation insurance. Workers comp is mandatory for any business that employs either an hourly or a salaried workforce, even if that workforce is just one person. Organizations are also required to carry IL commercial auto insurance if they use vehicles for any business-related reasons, such as deliveries, transport, or client visits.

General liability insurance is not required, nor is commercial property insurance; however, it is a wise idea for companies to invest in this type of coverage, as it will safeguard from lawsuits or losses that their properties could sustain.

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.


Information Technology And Internet Insurance

Some the more popular IT businesses do IT contracting or freelancing work. These businesses have specific risks they face, and can have huge exposures to uncommon risks. Even if the business is very careful, a small oversight or mistake can lead to a large and expensive lawsuit.

For information technology companies, like some of the more popular ones listed below, data security is paramount:

Application Development (Mobile & Web), Business Intelligence / Data Mining Businesses, Computer Installation & Repair, Computer Programming, Computer Retail Store, Data Analysts, Architects & Scientists, Database Administrators, Frontend Developers, Hosting, IT Business Consulting, IT Project Management, IT Staffing, IT Training, Information Technology Consulting, Life Sciences & R&D, Network Architects, Network Security Consultants, System & Network Design, Technical Writing and Web Site Development.

The IT business segment has a critical need for professional liability and errors and omissions coverage. If coverage applies, the insurer has several rights and duties such as providing a legal defense against claims and suits brought by parties claiming damages. The insurer is permitted to investigate all claims to determine whether they are covered by the policy and they may choose to litigate, deny or settle claims.

Most policies providing coverage for electronic data liability, computer professional liability, and computer errors and omissions are claims-made contracts.


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Software Developer Insurance
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