Insurance for Software Companies
In recent years, the software development industry has been in an unprecedented boom and growing trend, with many companies and businesses today basing their services and products on software and platforms developed by the software companies. When it comes to accounting, the sum of the expenses of companies from all over the world on software and IT services is estimated at more than three trillion dollars.
When software development services are on the rise, and the companies in the field provide service to more different and diverse parties, the risks they take on also increase accordingly. In order to allow software companies to reduce damages and operate under the most optimal conditions, insurance for software companies was created.
What Does Insurance for Software Companies Include?
Professional Liability Insurance – This provides expression coverage to the company and its employees against lawsuits that will be filed against them alleging negligence in the professional services they provide.
Cyber Insurance – Today, software companies are under constant threat of dangerous cyber attacks, which may expose and cause damage to sensitive information, systems, infrastructure, and advanced software. The damage from those attacks can be doubled or even tripled, as customers and third parties may also sue the company for the damages they suffered from the attacks, including for the violation of privacy. Cyber insurance provides them with comprehensive protection, which includes coverage of legal and regulatory investigations, legal expenses and judgments, coverage of ransom payments, cyber incident management expenses, and more.
Directors and Officers Liability Insurance – The senior officials in the company have to make significant decisions every day, which may expose them to lawsuits both from third parties and customers and also employees of the company may want to sue the officers and directors, due to various claims in employer-employee relations, which pertain to discrimination, for example. The insurance for software companies covers these claims and allows the company’s executives to conduct themselves under the best conditions.
Business Owners Insurance – Fires, floods, weather damage, thefts, and equipment that is damaged due to an unintentional action of an employee, may cause the company a high financial loss. Property insurance is designed to cover those damages and allow the company to conduct itself in a benevolent manner.
To fill out an online form regarding professional hi-tech insurance, click here>>