Insurance for Software Companies
The pace of technological change is frightening. The world is reliant on technology and small problems can bring businesses to a stand still. What does this means for Software companies?
- Firstly, your clients are reliant, if not dependent on your software.
- Secondly, their expectations are high. Higher than ever before.
- Thirdly, if things go wrong, they are not afraid to point their finger in your direction
More than ever you need insurance to cover you against the wide range of risks you face. Importantly, it must be the right insurance. Unfortunately that’s not as easy as it sounds. There are plenty of insurance companies willing to insure software companies. Very few understand the industry. And therefore, very few cover the key risks you need insuring.
At Whinney Insurance Brokers we have been specialising in insuring and advising software companies for the past 8 years. We have seen what can go wrong and we know what cover is required. If you need any assistance reviewing your current insurance, or just want some advice, please call.
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“Matt from Whinney Insurance Brokers has just provided our company with our first insurance policy. As a start-up in the FinTech arena we were looking for guidance on the necessary cover we required. Matt grasped the concept and complexities of what we do very quickly and provided a comprehensive and clear policy. The flexibility and range of cover was brilliant. “
Jack Allman (Chief Executive Officer – Auto Service Finance Ltd)
Professional Indemnity Insurance for Software Companies.
The most important insurance that you need to get right as a software company, is professional indemnity. If you already have professional indemnity insurance, below we have highlighted a few areas you should check are covered. Remember if you are currently insured under a generic or miscellaneous professional indemnity insurance policy, the key exposures faced by you, as a software company may not be covered:
- Breach of contract. Nowadays very few software companies proceed with a job without a contract in place. But it’s critical to understand how that contract affects your liability and importantly if your professional indemnity insurance will protect you if things go wrong. Very few insurers provide cover for breach of contract and if they do, it’s very restrictive. This important to check. Often you can source an alternative policy including breach of contract cover at no extra cost.
- Warranties covered. Often claims against software companies are brought as a ‘breach of warranty’. Unfortunately some insurance companies don’t understand this, so will only cover you for claims if it can be proven that you made an error. Sometimes, you will have taken all the reasonable care and skill but still breach a warranty agreement. It’s in these circumstances you need the peace of mind you are covered. We can arrange cover for you that extends to cover breaches of an IP warranty, a warranty of quality, a warranty of reasonable care and skill, or a warranty to conform to a written specification. All important extensions.
- Avoiding a claim. Whether a client rightly or wrongly makes a complaint about your work, we know the last thing you need is an expensive legal fight. More often that not, with specialist technology lawyers at hand it’s possible to avoid claim or law suit all together. If you’re already buying professional indemnity, it’s well worth checking whether the insurance company has their own in house legal team, or if not what law firms they outsource to. A specialist technology lawyer will be worth their weight in gold if things do go wrong. We only arrange software insurance with specialist insurers whom have in house specialist software/technology lawyers. The professional indemnity policy we provide also includes an ‘avoiding a claim’ extension. In short insurers will pay your contractual fees to avoid a claim being made against you by a client.
Here’s a list of some of the software related business activities that can be covered under the software company insurance that we arrange:
- software developers including games and apps developers
- software suppliers, including installation and configuration
- SAS – Software as a Service
- Software consultants and systems integrators
- Software implementation and project management and/or provision of contract staff