If your company writes code or designs websites, your company could be at risk without the proper commercial insurance protection.  To err is human. Despite your best efforts, it could happen.  If a failure in your program costs a client lost data or causes a security breech that causes your client a financial loss, they can come after you for compensation.  Furthermore, if there is any copyright issues with your software or content within, an Errors and Omissions insurance policy with intellectual property rights coverage will protect your business.

Claims of this nature are not covered by a Commercial General Liability insurance policy.    Even if the claim is unfounded, you would still need to hire an attorney to file the necessary documents and legal pleadings. The defense costs associated with claims for professional negligence could run well into the thousands very quickly.  A professional liability policy should cover defense costs, usually within the stated limit of insurance.  Be certain to consider this when choosing a limit of insurance.

Another feature that is helpful for technology companies is to look for a policy that will include coverage for not only your employees, but also your contracted employees.  Even if you do have this extended coverage for contracted employees, it is a good idea to require that they have their own errors and omissions insurance.  This way, your policy will be insulated from the risks claims arising from the work of contracted help.

One other thing you should look for as an optional coverage is Personal Injury coverage.  This coverage will protect you from allegations arising from libel, slander, or invasion of privacy.  These types of law suits have become alarmingly common for internet based operations.  Furthermore, Personal Injury coverage for technology companies and website designers is excluded more and more by General Liability insurance companies .  All too often this fact is realized and understood too late to do anything about it.

Even small technology companies and sole proprietors need to add some professional liability insurance to their commercial insuranceprogram.  Some insurance companies will add this coverage to a Commercial Package insurance policy; however, it is usually written as a separate policy.  Expect to have a deductible on the policy of no less than $1,000 and often as much as $5,000.  Some insurance agents specialize in writing technology insurance.  By seeking out a specialist, you will have sound advice and one less thing to worry about.

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