What sorts of errors does software consultant insurance cover?
Although the exact incidents that a particular policy covers are dependent upon that policy’s terms, most software consultant insurance policies protect against a variety of potential mistakes. Policies might provide coverage if a consultant makes errors such as the following:
- Coding error causes an application or website to crash
- Unidentified vulnerability is used to wage a successful online attack
- Application content infringes on another’s copyright
- Coffee spills on a client’s computer
An insurance agent who specializes in these policies can help consultants determine exactly what incidents a given policy will cover. For covered incidents, policies usually help pay court costs, attorney costs and settlements (up to a maximum limit).
Do employers’ policies give software consultants professional liability coverage?
Software consultants who work for an employer may have some professional liability coverage through their employer’s insurance policy. Whether professional liability coverage is afforded largely depends on the employer’s policy and the employment situation.
Consultants who are actual employees likely do receive at least some coverage from their employer, although the coverage may not be as much as they’d like. Additionally, any employer-provided coverage, in this case, is probably limited to work done for the employer -- and unlikely to cover moonlighting or side gigs.
Consultants who operate as independent contractors may receive coverage from an employer that hires them, but they’re less likely to. Most consultants in these situations have to purchase their own E&O insurance.
In either situation, a knowledgeable insurance agent can help consultants make sure they have coverage for all of the work they do.
How much are premiums for software consultant liability policies?
The premiums that insurance companies charge for software consultant liability policies vary, as they’re based on a multitude of factors. A consultant’s employment situation, the scope of work and experience are just some of the details that can impact the cost.
The easiest way to find out how much coverage will cost in a given situation is to work with an independent insurance agent. Independent agents are able to compare customized quotes from several insurance companies.
How can consultants in Massachusetts get software consultant liability insurance?
For help finding software consultant liability insurance in Massachusetts, contact the independent insurance agents at Scotti Insurance Agency. Our agents are well-versed in E&O insurance, including in consultant-specific policies, and have the knowledge needed to get you a good policy.