Developing software will prove to be a lucrative business in Canada. Someone has an idea for a new program and it is your job to develop it. With your assistance, that individual or company can transform their idea into millions. However, your dreams may not come to fruition. Problems may occur and you could end up ruining the client’s idea because you made a small error in one line of code. While it may seem like a small mistake, it could lead to major problems and liabilities.
By teaming up with ProfessionalsCoverage, you can find a reliable insurance broker who can help you get adequate IT insurance you need to protect your business. Below, you’re going to learn more about the essential components of any business insurance policy for software developers.
Important Insurance For Software Developers
Software developers face a lot of risks. You may be able to minimize those risks by improving your techniques and working more carefully. Still, you may mess up and you don’t know when that is going to happen. So, you need insurance to shield your company from potential issues. Which insurance policies are most important to software developers?
Errors And Omissions Insurance
As a software developer, you’re going to stare at your computer screen for 8, 9, or even 10 hours a day. This can take a toll on your eyesight causing the letters and numbers to blur. As a result, you may end up making a costly mistake that you don’t catch. It may leave the customer’s software vulnerable to hackers. If something like this occurs, your company could be sued. Errors and omissions insurance is going to help. It can protect your software development company when you’ve completed substandard work or you have errors in the source code. If your coding causes a data breach, E&O insurance will be there to help you.
Cyber Liability Insurance
Software developers need to prove that they can protect their computers and networks. You’ll want to do everything you can to prevent a security breach from hurting your business. If you experience a breach, your customers may believe that your software isn’t going to be safe. Still, you need cyber liability insurance so you can make up for the loss. This insurance will help your clients deal with the aftermath of a cyber breach and keep track of their identity. With this insurance, you’ll have financial assistance for dealing with data recovery, fraud monitoring, and client notification.
Fidelity bonds or employee dishonesty bonds will make a great addition to any company’s insurance policy. As the owner of a software development firm, you need fidelity bonds more than anyone else. This Fidelity bonds can shield your business from the illegal actions of bad employees. While you try to hire the best and most trustworthy workers, one of those individuals may do something illegal. They may need extra money to pay rent so they could transfer your company’s funds to their account. To recuperate the money, you will need fidelity bonds. These bonds can also protect your company if an employee tries to steal your source codes.
General Liability Insurance
Clients will be eager to know how well the software is coming along. They’ll likely visit your office from time to time so they can see what progress has been made. During their visit, you’ll want to take precautions to ensure that these individuals do not run into problems. That friendly visit could transform into a nightmare if the visitor slips and falls. They could trip over something on the floor and break an arm. While it seems farfetched, these injuries are common in Canada. You can protect your company when it is sued because of a slip and fall by maintaining general liability insurance. You will also be able to use this insurance to fight libel and slander lawsuits.
Workers’ Compensation Insurance
Your software development firm has a lot of team members. After all, you need help developing, testing, and troubleshooting your software. Without these individuals, you’d never get anything done. Workers’ compensation is a must since you want to give back to these loyal individuals. If they’re injured at work, you’ll want to help them recover as quickly as possible. Workers’ comp is great because it will cover the employee’s medical expenses and make up for lost wages. If that worker tries to sue your company, it’ll help pay for your legal costs too. Workers’ compensation is a must since it is a requirement in Canada.
Commercial Automobile Insurance
You’ve finally finished building your client’s dream software. Now, it is time to rush to their place of business so you can show them how great it works. You’re speeding because you can’t wait to show them what you’ve done. You look down, look up, and crash into the back of another vehicle. If you’re lucky, you have commercial automobile insurance. If you’re not, you don’t and your company is going to be in big trouble. Commercial auto insurance covers business-owned vehicles. It covers crashes, theft, vandalism, and weather damage.
You biggest asset in life is your earning ability. If you are unable to work, you will need to rely on either your savings or borrow money to sustain your lifestyle. When these unfortunate circumstances occur, dependents and spouses are also impacted financially and emotionally.
Disability insurance coverage will provide you a monthly income benefit, usually totaling 70% to 80% of your income, when you are unable to work for a period of time due to injury or illness.
Types of disability insurance:
- Long-Term Disability Insurance (LTD)
- Short-Term Disability Insurance
- Key Person Disability Insurance
- Self Employed Disability Insurance
- Mortgage Disability Insurance
- Temporary Disability Insurance
- Supplemental Disability Insurance
How Much Will You Pay For Software Developer Insurance?
If you’re a self-employed software developer, you may try to skip getting insurance. You’re worried that the costs are going to be too expensive. Well, you should know that software developer insurance varies depending on numerous factors including the size of the company. So, smaller companies with fewer assets will pay less. Get in touch with ProfessionalsCoverage so you can locate an insurance agent who can help you get free quotes.
Is Insurance A Must For Canadian Software Developers?
The software development industry in Canada is booming but a simple mistake could ruin your dreams. You may think that you’re never going to make a mistake and that you’ll never get sued. You tell yourself that you drive carefully so you’re not going to cause a vehicle accident. In reality, you never know. Humans make mistakes and nobody is perfect. You have to accept this and get insurance for your software development firm immediately. Wait too long and you’ll create even more problems for yourself.
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Helpful resources for IT professionals and their companies
- Why do I need IT insurance for my business?
- What types of insurance do I need for my IT business?
- Will I be legally required to get insurance to operate as an IT company?
- How do I get the cheapest rate possible as an IT business?
- As an online business, what liability insurance coverages will I need?
- How do I handle a lawsuit that is frivolous or completely fake?
- Want to cancel insurance for your IT Company? Here are reasons to consider!
- Using a change control board for tracking.
- Acceptable use policy – Every business needs it and here is how to write one!
- Want to start an IT consulting business? Awesome! Here is a small guide!
- How much insurance will I need to operate my tech company?
- I am a sole proprietor, how will business insurance work for my IT business?
- How do I choose the right legal corporate structure for my technology company?
Other types of IT Businesses we insure:
If your specializing is not mentioned below, have no worries. Our insurance markets can provide liability coverage for the majority of information technology related businesses.
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