Business Type :

As an IT professional, you may wonder why you need computer programmer insurance. In actuality, you still need the same kind of protection any business would in case of damage to your assets,or injuries that might occur on your business property (or in your home, if you work on a freelance basis). You also need workers’ compensation.

You also face risks that other businesses don’t, which calls for a special kind of insurance.

A professional can help you decide what coverage you need. But in the meantime, here are some of the kinds of computer programmer insurance and other coverage you might need:

Cyber Risk Insurance

Cyber crimes and accidents might be the most serious risk you will face in your business. You might be held liable for data breaches, hacking, data tampering, invasion of privacy, malware, regulatory action, and more.

Large technology firms have had to pay settlements because of data breaches of up to millions of dollars. Smaller businesses, especially, have limited resources to protect themselves if sued. Having the proper cyber liability insurance coverage can help prevent a total loss.

IT Professional Liability Insurance

This might be your most important insurance. If a client is unhappy with your performance and sues, your professional liability insurance will cover your legal defense and provide money for some, or even all, of the judgment or settlement amount.

Another way this could help would be to cover the revenue loss for a client for not being able to use a database for a period of time because of an error.

Errors & Omissions Insurance

You are responsible for any advice you give, work you do, and anything you forget to do for a particular client. As an example, if you recommend a new software program and the software causes the client’s system to crash, you could be sued for damages for the time when the system was down. Errors and omissions insurance will pay for the legal costs if your client suffers a financial loss.

General Liability and Property Insurance

This can protect a freelance programmer, just as it would any brick-and-mortar store, for damage or loss of physical assets, including equipment and supplies. It can also protect you against claims for customers or client injuries because of accidents or negligence.

As an example, if a delivery man trips over a power cord or a client slips on your sidewalk, you could be sued for medical expenses. If you are a freelance programmer, you should know most homeowner’s or renter’s policies won’t cover property damage or liability to business property, even if you work from home.

As a freelance programmer, you probably qualify for a Business Owner’s Policy (BOP). This bundles general liability and property insurance together. You will pay a single, discounted premium.

Workers’ Compensation

If you have employees working for you, you need workers’ compensation to protect against work-related injuries and illnesses. It also protects against lost wages and provides for rehabilitation and medical expenses.

Keep in mind that most states (for example, New Jersey) require workers’ comp insurance if you have any employees.

Commercial Auto Insurance

Your business could be at risk if you travel to a client’s work site. It doesn’t matter if you use your truck, van, or car to transport computer equipment, products or accessories. You need commercial auto coverage to protect against damage caused by a car accident, vandalism, or weather damage, such as hail. It is also required by law.

Remember: All businesses need insurance coverage at some point or another, whether it’s overall coverage or specific to a work contract’s requirements. By making sure you have the proper policies to cover all of your bases, you can worry less about the risks and pitfalls of your industry and focus on growing your computer programming business.