Insurance for Software Developers

General Liability Insurance: Protects against third-party risks, such as injuries to visitors at your office or damage to client property.

• Importance: Crucial for covering legal fees and medical costs resulting from accidents.
• Coverage: Legal fees, medical expenses, and settlements related to accidents involving non-employees on your premises.
• Best for: Client bodily injuries, damaged client property, libel, and advertising injuries.

Technology Errors and Omissions Insurance (E&O): Covers legal expenses related to the quality of your work, including failure to deliver promised results, accusations of negligence, and work errors.

• Importance: Shields your business from claims related to professional errors or omissions.
• Coverage: Legal costs, settlements, and damages resulting from professional negligence.
• Best for: Failure to deliver results, errors in analysis, missed deadlines.

Workers' Compensation Insurance: Required in most states for businesses with employees, this policy covers medical expenses and lost wages if an employee gets injured on the job. It also protects sole proprietors from work injury costs that health insurance might deny.

• Importance: Mandatory in most states, it protects employees and sole proprietors.
• Coverage: Employee medical expenses, missed wages, injury lawsuits.
• Best for: Employee medical expenses, missed wages, injury lawsuits.

Commercial Auto Insurance: This policy covers bodily injury and property damage caused by commercial vehicles. It also pays for repairs to vehicles damaged by weather or vandalism.

• Importance: Covers injuries and property damage caused by business-owned vehicles.
• Coverage: Physical damage, collision coverage, medical expenses, and liability for injuries caused to others.
• Best for: Physical damage and collision coverage, injuries from car accidents, vehicle theft, and vandalism.

Cyber Liability Insurance: Helps your business survive data breaches and cyberattacks by covering recovery expenses, lawsuits, and other related costs.

• Importance: Essential for protecting sensitive data and mitigating the financial impact of cyber incidents.
• Coverage: Data breach lawsuits, client notification expenses, fraud monitoring costs.
• Best for: Data breaches, cyber extortion, recovery expenses.

Fidelity Bonds: Also called employee dishonesty bonds, these compensate clients if an employee at your company steals from them. It's often required for client contracts.

• Importance: Ensures trustworthiness and compliance with contractual obligations.
• Coverage: Financial protection against employee theft or fraud.
• Best for: Employee theft, unlawful data access by an employee, and illegal fund transfers.

Depending on your business needs, consider these additional coverages:

• Commercial Umbrella Insurance: Provides additional liability coverage beyond standard policies.
• Business Owner's Policy (BOP): Provides General Liability. Property Insurance and Business Interruption in a bundled package.