Selling solutions puts your clients’ operations in your hands. Whether you install, integrate, customize and support your own software or a third party’s, your software sales company carries a lot of responsibility. Your clients expect increases in efficiency, productivity and, possibly, revenue. A mistake or accident on your end could directly affect their bottom lines. Software sales company insurance is a package of tailored coverages designed to protect you from losses to your clients’ businesses and your own.
How Software Sales Company Insurance Can Protect You
The following are examples of some of the risks your software sales company faces:
- The software applications did not meet the client expectations and they decide to sue for breach of contract or false advertising
- The system isn’t integrated properly causing lost productivity and/or sales
- A breach of your system exposes protected personal and business information of your clients and staff
- Someone accuses you of intellectual property infringement in a lawsuit
SaaS insurance can protect you by covering the sizeable costs of a lawsuit including:
- Lawyer’s fees
- Other costs to mount a defence
- Out-of-court settlements
- Awards for damages
Software Sales Company Insurance Coverages
The following are coverages that are commonly included in a SaaS insurance plan:
Technology Errors & Omissions Insurance – which is the policy that can cover legal expenses, settlements and/or judgments for claims of negligence, or other forms of professional deficiency, errors, omissions etc. that led to client’s experiencing financial losses associated with your services or the software.
Commercial General Liability Insurance – is common for all businesses as it can protect you from legal claims of personal injury, property damage, false advertising, libel/slander and more.
Cyber Liability & Privacy Insurance – is as essential for your software company as cybersecurity software and protocols are. The amount and type of data stored on your devices and systems and the reliance of your clients’ system on your own make this coverage a necessity for risk management. Cyber liability insurance can cover the costs of a breach including losses sustained by third parties, costs to repair systems and data and notification costs.
Property Insurance – protects building property and contents including computer equipment, office equipment, furniture, supplies, financial instruments and other assets from perils such as fires, floods, sewage backups, windstorms and others. You may want to include the following extensions:
- Business Interruption coverage to replace income lost due to an insured peril; and
- Extra Expense insurance to cover the costs of setting up a temporary location following an insured peril.
Boiler & Machinery Insurance / Equipment Breakdown Insurance provides coverage for the losses stemming from machinery and equipment failure due to perils like electrical arching, power surges and others not named in a property insurance policy.
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