When you also have equipment or operate from an office
All Basic plan benefits and:
Get protected against employment-related issues
All Standard plan benefits and:
*plus Workers Compensation
Commercial Property insurance covers any type of commercial property against the perils of fire, theft, vandalism, and natural disaster. It covers your business from the loss of property or liability coverage when a disaster occurs.
While your insurance will pay for property lost, what about your business income? Business Interruption will cover the loss of income when a covered event forces your business to temporarily close. It covers the recurring bills and expenses such as employees' salary, additional expenses due to the disaster, and the expense of moving to a temporary location.
Cyber Liability insurance covers the cost of the losses that are due to the various types of breaches and attacks on your computer system. This insurance pays for notification costs, monitoring costs, legal fees, and other expenses due to the breach.
General Liability insurance provides financial protection when your business is sued over a variety of claims such as bodily injuries, personal injuries, third-party property damage, advertising mistakes, libel, slander, and other related claims. This insurance will cover the cost to defend your business including out-of-court settlements and related fees.
Owning a software publishing business can be rewarding, but it requires a lot of hard work. As a business owner, you are responsible for managing the risks that your business can encounter, and having insurance is a big help especially when your business is faced with a lawsuit. Insurance covers the expenses up to the limits of your policy when a lawsuit occurs, and all that's required is a small monthly fee to protect your business. While it may be frustrating to have yet another business expense, it is necessary for the survival of your business. Whether you are brought into a lawsuit and need to utilize your General Liability insurance or some of your business property is damaged and you will need Commercial Property insurance, you want to be able to continue to operate your business with little to no interruptions. Interruptions to your business mean that there might be a loss of income, which can also be covered by insurance. Regardless of the risk your business presents, there is almost always an insurance solution for it. So, rather than looking at it like it is another expense that you begrudgingly have to pay, think of it as an investment. Because if you need to use it, it will be there in most cases. Be sure, though, to pay attention to what each policy covers, and almost as importantly what it does not cover. You don’t want to be left footing the bill if you or the insurance agent missed an important coverage.
Below are some common risks software publishers can face:
The software you published and sold to your clients is claimed to be unsatisfactory, filled with bugs, and your client reports that they have lost a lot of money as a result. This forces your client to sue your business.
Your office gets flooded due to a burst pipe. This destroys most of your computers and soaks all your documents, therefore forcing your business to close for the time being.
There is no fixed price for insurance for software publishers as this depends on various criteria. However, the cost of your insurance is mainly affected by the size of your software publishing business, the number of employees you have, and the coverage required. To find out the cost of your insurance, simply apply online and we'll send you a free quote in just a few minutes.
Software publishers, like any other information services business, need more than just one little coverage to properly protect the business. One way to bundle your insurance, which will not only save you money but also give you some extra coverages you might not otherwise consider, is to have a Business Owner’s insurance policy also known as a BOP. A BOP will start out with two main coverages, General Liability and Commercial Property insurance. So, it will cover your lawsuits related to bodily injury and property damage, as well as property coverage for physical damage from things like fire, wind, and theft. Being able to have one policy to cover both of these critical coverage parts is helpful because you know where to look to find the coverage. While a BOP is important for any information services company to purchase, there are some other essential coverages as well. You should consider also carrying Professional Liability insurance because you are in a profession where you give advice and do consultations. A customer could sue you and allege that you were negligent when doing your job and it caused them financial hardship. You don’t want to get into a situation where someone sues you and you have to spend all of the profits you have made in the last 5 years on a lawyer, not to mention whatever settlement or judgment they may be awarded. Also, if your company is big enough to have a board of directors and officers, it is important that you also look into Directors and Officers (D&O) insurance to help protect their personal assets.
The internet has truly changed our world and the way we do business. Almost every single business has a risk of being attacked in some way through the internet. As an IT software company, you have a huge exposure when it comes to Cyber Liability. There are two types of Cyber Liability insurance and as a business owner, it is critical that you have coverage for both. Since you offer internet software and services you probably take credit card payments from your customers, right? If you do, then you have to use the internet to do so, so if a hacker is able to get into your system and steal your clients’ credit card numbers, this would be considered a first-party Cyber Liability claim. It will pay for client notification, credit monitoring for those affected, and even cyber-extortion which is on the rise. On the other hand, and maybe more important for your application software business, is third party Cyber Liability. This applies when your customers’ system is hacked and they blame it on your software. Cyber Liability in this instance will almost act like E&O insurance since it could be considered negligence on your part if it is found to be your fault. It will pay for attorney fees, court costs, and any judgments or settlements awarded to the plaintiff.
Regardless of the size of your business and what type of software or services you provide, insurance is never a bad idea. Due to the overwhelming amount of risk any information technology services or software business can face, it is vital that you carry insurance, and make sure you have the right coverages and policies in place. The chance that you will have a claim alleging negligence or property damage is pretty high since you are dealing with customers on a daily basis. A few of the types of software and services companies that should have insurance include but are not limited to any kind of Information Technology Services companies, Information Technology Software companies, Browser Software companies, Search Engine Software companies, VOIP or Satellite Software companies, Online Financial Services companies like QuickBooks or Mint, Supply Chain Management Software developers, and Customer Relationship Management (CRM) Software like Dubsado.
If you are developing new software, working for a business and handling their internet services, providing consulting for any other business, or just simply helping people learn how to utilize information technology you are at a risk for a lawsuit. Not to mention, if you are developing software and don’t want it to get destroyed, it would be a good idea to insure that as well. There should be no question as to whether or not your business needs insurance because you have a higher risk than most businesses, but even the smallest business that has minimal to no risk can have the unthinkable happen. Even if you have the most top-notch safety programs in place, human error is a real thing and in the information technology services and software industry, it can cause major problems. A lawsuit will surely be coming your way if a client is impacted financially by something to do with your services. Be prepared by having the right insurance in place.
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