Insurance for software development companies providing CMMS solutions
Protecting your
software development company from the dangers of indemnity and liability on the
same policy is essential. If the worst happens, the last thing you want is a
chink in your armour brought on by a hole in your protection.
Your
software company is shielded from
third-party lawsuits by IT liability insurance. It combines general
liability and professional indemnity insurance.
It’s
a good idea to professionally indemnify
yourself in the event that your advice or service causes losses for your
client/customer. In the unfortunate event that your software products or IT consulting
services somehow cause third-party injury or property damage, the importance of
having general liability insurance will
never be questioned.
I
believe it makes a lot of sense for technology companies to professionally
indemnify themselves and have substantial liability cover in place because, no
matter how hard they work to deliver an amazing product, anything can happen.
In
terms of risk, the software development industry is quite unique. Given the dizzying
pace at which the world moves these days, as well as the ever-changing
perceptions of corporate responsibility, the risks you face today are unlikely
to be the same as those you face tomorrow.
Massive
overhead costs, combined with investor pressure, can put your company under
tremendous strain to get your product out the door as soon as possible while
also meeting all of your clients’ many expectations.
Your
customers may be desperate for your product or service to reduce downtime on
their end, or the new innovations your software can provide are needed to
provide them with the tools they need to improve or change the way they
operate. When your company is under such duress, it’s only natural for stress
to east away at the productivity of your fantastic employees.
In
some ways, I believe it is unfair that external pressures can be the catalyst
for delivery delays, coding or design errors, and poor decisions. Apart from
costing you money in the short term, it can cost you even more in the long run
if the customer/client decides to sue you because the pressure they put you
under caused you to make a mistake or two, allowing an inferior product through
the door at their end. When you stop and think about it, it’s just so unjust.
Unfortunately,
that is the world we live in, so I believe it is unavoidable for a software
development company to insure themselves extremely well.
Given
how much is at stake, it only makes sense to work with a specialised insurance company that specialises in the technology sector. I’m not going to name
any specific insurance company, but it does appear that some stand out
significantly more than others. You must be able to protect your company and
all of its good people, as well as your vital reputation, and ensure that you
have enough money to keep the doors open regardless of the situation.
It
just wouldn’t be right to entrust all of this responsibility to an insurance
company that isn’t at the top of their game. They must be able to demonstrate
that they are on your side and fully understand what you do, how you do it, and
all of the risks that you must mitigate.
Naturally,
you never want to be in a situation where you need to make a claim. When that time comes, the last thing you
want to hear is that you never considered this particular situation when
putting together your policy. Or, the
other thing that could happen is that the insurer decides to make things so
complicated that you might as well have never contacted them in the first
place.
If
you’re going to be paying a reasonably substantial premium to insure yourself
against every possible contingency, you need to be supremely confident that you
are covered. When you do make that all
important phone call to the insurer one day seeking a claim, you need things to
be simple and swift.
This
world needs software developers to be at their most creative, constantly
blowing our minds with their new amazing products. Similarly, these companies should be able to
offer their amazing employees as a service to consult on what can and cannot be
done to improve a company.
So I
hope that software companies are insuring themselves heavily and do everything they
can to ensure their long-term viability and I look forward to seeing what they
come up with next.
Despite the fact that it’s hard to imagine a software company not having the most complete attack protection. Theoretically, it’s possible that they are occasionally so preoccupied with creating their own product that they fail to notice some incredible strides that other software firms have made in online attack protection and cloud security.
To stay compliant, safe, and to guarantee their long-term success, they must protect their infrastructure with runtime threat detection across all of their servers and any cloud environments they may be using.
[…] The consequences of having to shut down for a few days due to someone breaching their outdated defences are multifaceted. If it results in a delay in releasing a fully tested and fit-for-purpose version of their latest product, they may require the comprehensive level of insurance. I mentioned it in one of my most recent articles. […]
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