Software Developer Insurance from Massachusetts Specialists

What is Software Developer Insurance?

Software development is a lucrative and growing field, but it’s not one without risk. Massachusetts businesses in the field must consider the property and liability risks they face, and that’s weird software developer insurance comes in.

Software developer insurance is specialized commercial insurance designed for software firms and similar businesses. So that these policies can protect against both property and liability risks, the policies normally come with multiple coverages packaged together.

What Firms in Massachusetts Need Software Business Insurance? 

Most Massachusetts firms that develop software and/or apps can benefit from the protections afforded by software business insurance. Some examples of firms that might want this insurance include:

• Enterprise software developers
• Business software developers
• Productivity software developers
• Game developers
• Web plug-in and extension developers

In some cases, businesses that develop software and do other work also need one of these policies. An insurance agent who specializes in software business policies can help broader businesses determine whether they should carry this type of insurance.

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What Coverages Are Available Through Software Business Insurance?

As mentioned, software business insurance typically offers multiple coverages. Some of the property and liability coverages that a policy might offer include:

• Commercial Property Coverage, which may cover firm-owned buildings, equipment and other assets
• Tenants Betterment Coverage, which may cover firm-made improvements to a leased office
• Inland Marine Coverage, which may cover firm-owned equipment if it’s transported between locations
• Business Interruption Coverage, which may cover revenue losses that are caused by certain disasters
• General Liability Coverage, which may cover basic accidents occurring on a firm’s premises
• Professional Liability Coverage, which may cover errors in work and incorrect advice
• Cyber Liability Coverage, which may cover data breaches, hacking attempts and other online risks
• Commercial Umbrella Coverage, which may add another layer of liability protection

Firms that use a vehicle for on-site services likely also need commercial auto coverage, and there are still other coverages that policies might offer. An agent can go over all available protections.

Should Individual Software Developers Have Software Business Insurance?

Individual software developers who are self-employed ought to consider purchasing a software business policy. Even if developers work for make home office, homeowners insurance generally doesn’t extend coverage to business activity. A software business policy is thus normally necessary to ensure even self-employed software development.

What Sorts of Incidents Are Covered by the Professional Liability Protection in a Software Developer Policy?

The specific protections afforded by any individual software policy’s professional liability coverage depend on the terms of that policy. Nonetheless, many policies provide coverage for incidents like the following:

• Failure to complete project by given deadline
• Program glitch resulting in lost revenue for client 
• Program vulnerabilities resulting in hacking of clients system
• Completed project fails to meet contractual obligations