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Is Professional Indemnity Insurance for Software Companies more important than ever?

The world is reliant on technology. Without it, most businesses would grind to a halt. This means software companies have never been more at risk. Consequently, insurance for those software companies is more important than ever.

A large proportion of our clients are B2B, in sectors ranging from pharmaceuticals to manufacturing. All of which supply software to ensure the smooth running of other businesses. 

Three things have changed recently which affect you as an employee or director of a software company.  

  1. Businesses are increasingly reliant on the software and IT infrastructure they use to run their business.  
  2. Many businesses have moved to cloud or SAAS solutions, driven by the pandemic and the need for remote working. As a result, software is intertwined with their operating systems and/or inaccessibility to that software can have a financial impact on any business.  
  3. There’s an expectation that everything should work all of the time. We are no longer patient. Both the public and businesses do not accept anything less than 100% availability to their software and systems. That expectation means people will complain and in some cases, take legal action against software companies when things fall short.  

The good news is that 10 years ago most small software companies didn’t have professional indemnity insurance. Most larger software companies have had to due to contract requirements, but not those at the lower end. This is changing. Most software companies now realise the importance of professional indemnity. Awareness is the important first step. The next step is a step back. Step back to think about what could go wrong, and assess whether;  

a) that is covered by your professional indemnity insurance and  

b) whether the cover you have is sufficient  

It’s with that step back that we can really help you. Help you think about what could go wrong and what impact that would have on your clients. And then help you assess whether the cover you have covers those eventualities and at what level that cover needs to be.