Whether you are creating the next big computer program that will change the world, or you are a small app creator, there are risks involved. As a software development professional, you and your business are at risk anytime you are providing a professional service to a client. There are many reasons that a claim could arise that involves your business - day to day.
Intentionally or not, some things can happen that can make a client unhappy and cause them to sue you. Copyright infringement, cyber attacks due to a vulnerability, damage to a clients property while you are working (i.e. coffee spilled on a computer), coding errors, and failure to complete your project on time are just some of the things that can be claimed by an unhappy customer.
The best way to avoid having a significant financial loss is to contact your insurance broker and get one of the most important insurance coverages – Professional Indemnity insurance policy designed specifically for software developers.
What Does Professional Indemnity (PI) Insurance for Software Developers Cover?
You may also hear the words Errors and Omissions or Professional Liability when discussing Professional Indemnity insurance. It is crucial that as a software developer you have a Professional Indemnity insurance policy because mistakes can happen and some customers will be unhappy no matter how you try to correct the situation. In addition to the fundamental Professional Indemnity coverage, you will also be covered for defense costs. Defense costs can end up being over tens of thousands of euros depending on how the court case goes, and you will also be on the hook for court fees. Even if you win the court case, the attorney is going to charge you for their time so be sure to be prepared by having right insurance coverage.
Claim Examples for Software Developer