Software Developer Insurance in Massachusetts

What is Software Developer Insurance?

Software development firms are exposed to a variety of potential perils, including both property- and liability-related risks. In some cases, these risks can result in expensive losses or costly legal fees. Software developer insurance helps protect software firms in Massachusetts from a number of covered risks that they could face.

Software developer insurance is a specialized type of commercial insurance that’s intentionally designed with software firms in mind. Most policies are drafted as package policies that come with several protections bundled together.

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What Massachusetts Businesses is Software Business Insurance Right For?

The vast majority of Massachusetts businesses that are involved in the design and implementation of software applications ought to consider getting software business insurance. This may include (but isn’t necessarily limited to) the following:

  • Developers of enterprise and business software programs
  • Developers of personal software programs
  • Video game developers
  • Website plug-in developers

Businesses that are unsure whether this or another insurance option is more suited for their situation can consult with an insurance agent who specializes in software business insurance. A specialized agent will be familiar not only with these policies but similar ones as well, and they’ll be able to make an informed recommendation as to which type of commercial policy best suits a business' needs.

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What Coverages Does Software Business Insurance Provide?

There are many coverages that software business policies may provide. Some of the more commonly chosen protections include the following:

Do Home-Based Solo Developers Need Software Business Insurance?

Most home-based software developers who are self-employed would be well-advised to procure a software business policy. Homeowners insurance usually doesn’t provide liability coverage for business-related activities, and it might not even cover a home office or equipment used for work. 

While adjustments to homeowners policies occasionally can be made so that the policies better protect self-employed developers, purchasing a commercial policy that’s specifically designed for software developers typically affords better protection. An insurance agent who’s familiar with these policies can help self-employed developers analyze their current coverages and risks to find the best insurance solution.

What Incidents Does a Software Developer Policy’s Professional Liability Coverage Extend To?

The protections afforded by professional liability coverage, or errors and omissions coverage, tend to offer help with legal fees and settlements in the event of a covered work-related error. What constitutes a covered error depends is determined by a software developer policy’s terms, conditions and exclusions. Depending on a policy’s terms, covered errors might include things like the following:

  • A developer fails to complete a project by the given deadline
  • A program contains a glitch that results in lost revenue for the client
  • A program contains vulnerabilities that result in a client’s system being hacked
  • A finished project fails to meet the contracted requirements that were agreed upon

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How Can Software Businesses in Massachusetts Get Software Developer Insurance?

For help insuring a software business located in Massachusetts, contact the independent insurance agents of Roger Butler Insurance. Our agents have the freedom to show you software developer insurance policies from multiple insurers in the state, and our team has the expertise necessary to help you identify which policy is best for you and your business.

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