IT Consultant and Developer Liability Insurance

As a computer programmer or information technology (IT) professional, you face some of the same risks that brick-and-mortar businesses face. With so many businesses relying on computer systems to keep operations going smoothly, you could be the target of a lawsuit if your product or consultation doesn't meet client expectations. That's why it's critical to protect yourself with the appropriate kind and amount of liability coverage.

Fortunately, a local independent insurance agent can help you get set up with the right IT consultant insurance. They'll get you equipped with all the coverage necessary to protect you against the cost of lawsuits that may arise in your line of work. But first, here's a closer look at IT consultant insurance, what it covers, and more.

What Is IT Consultant Insurance?

This form of business insurance is specifically designed to handle the unique risks associated with computer programming and other professional IT careers. Whether you own your company or work as a freelance information technology professional, software developer, or computer programmer, you must protect yourself against potentially hefty expenses that can arise if you are sued for client or other third-party claims of faulty or insufficient programs or services.

IT professionals, computer programmers, and software developers need a special type of professional liability insurance, often called developer liability insurance, tailored to their unique industry. This coverage can reimburse you for the cost of your legal defense in a lawsuit and other related expenses.

Without this coverage, you could have to pay out of pocket for claims of professional errors or omissions. In the event of an especially large lawsuit, your business might be forced to close its doors for good.

What Does IT Consultant Professional Liability Insurance Cover?

Computer programmer and IT consultant professional liability insurance can reimburse you for various expenses stemming from third-party claims of professional errors or negligence on your part. This coverage will help pay for claims of mistakes, accidents, improper or inadequate advice during a consultation, and other related incidents.

Professional liability insurance pays for the following:

• Arbitration and settlement costs
• Defense costs, including attorney and court expenses
• Punitive and compensatory damages

Ask your independent insurance agent to help you cover your computer programming, IT consultant, or software development business with the right professional liability insurance today.

Examples of Professional Liability Claims Against IT Professionals

Even the most careful and professional IT consultant or computer programmer can make a professional mistake that results in a loss or harm to their client. These potential situations illustrate how computer programmer insurance or IT consultant insurance can protect you.

• You design a database for a client, but a professional error prevents them from accessing it for over two weeks. The company claims that losing the database for so long results in a large revenue loss. Your information technology professional liability insurance could reimburse you for those expenses, including your legal defense, if the client sued your firm.
• You're hired to solve a technical problem for a business, and while fixing it, a hacker breaks in and retrieves company data. You may be held responsible for the resulting losses. Fortunately, your IT consulting liability insurance can reimburse you for these expenses.

While the thought of purchasing an insurance policy may seem like just another expense, even a well-written contract can’t protect you during all circumstances. Computer programmer professional liability insurance can be tailored to meet your individual needs and address the client situations you encounter daily.

Who Needs Developer Liability Insurance?

IT consultant professional liability insurance can also be referred to as computer programming insurance, software developer insurance, or developer liability insurance. This coverage is designed to help many different professionals who work with computers and their components, including those who offer advice and consultation.

The following professionals typically need this coverage:

If you work in any of these fields, ask a local independent insurance agent to help you get all the professional liability insurance and other coverage you need to protect yourself and your business.

Additional Coverage for IT Consultants and Computer Programmers

As a computer programmer, software developer, or IT professional, you’re subject to different risks than other companies. You'll likely need multiple forms of coverage to fully protect your company from various angles.

The following forms of coverage help you specifically address these risks:

• General liability insurance: If a client suffers from personal property damage or bodily injury due to you or your business, you could be sued. In such a case, you'd need general liability insurance to reimburse you for related expenses.
• Commercial property insurance: If you work from home, know that your homeowners insurance policy may cover a portion of your home office but may not cover all of your business equipment. Commercial property insurance can protect your professional equipment and other components of your home office from various perils, such as vandalism, theft, and fire damage.
• Commercial auto insurance: If you use a vehicle to travel to client homes or businesses, you'll need protection against liability, vandalism, accidents, and more. Your personal auto insurance won't provide coverage for your car when it's used for business purposes.
• Workers' compensation insurance: If you have employees, you're likely required by law to have this coverage, which can reimburse workers for injuries and illnesses that arise because of their job duties or the job environment.
• Business interruption insurance: If your business must temporarily suspend operations due to a covered incident like a fire, this coverage can reimburse you for ongoing company expenses such as employee salaries.
• Cyber liability insurance: Cybercrime is one of the most serious issues you can face as an IT professional. This coverage can reimburse you for expenses stemming from cyber-attacks and data breaches that may expose or distribute private and sensitive data.

Your independent insurance agent can help you get your business equipped with any additional forms of protection it may need.

How Much Does IT Consultant Insurance Cost?

The cost of your developer liability insurance can vary based on many factors. These often include:

• The type and amount of commercial property you have
• The specific services you offer
• The number of employees you have
• Annual company payroll
• The size and location of your business
• Your claims history

Your independent insurance agent can help you find affordable developer liability insurance in your area.

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The Benefits of an Independent Insurance Agent

When it comes to helping insurance customers find the right developer liability coverage, no one’s better equipped to help than an independent insurance agent. Independent insurance agents search through multiple carriers to find providers who sell IT consultant professional liability insurance, deliver quotes from a number of different sources, and help you walk through them all to find the best blend of coverage and cost.