5 Reasons to Purchase Tech E&O Coverage

Don’t think you need insurance as a tech professional? Think again. Here are 5 reasons to seriously consider a professional liability policy.

  1. Clients are Crazy – Expectations – You are going to build the world for them for free, and have it done yesterday. There will be no bugs, and it will generate them millions. Ring a bell? Despite any documentation you may sign or expectations you may set, they will view it through their rose-tinted bias, what they heard, and what they expected, and will ultimately bulldoze all the rest. While none of this is realistic, its what they expect, and when you fall short of their pipe-dream, that sweet gig can go side ways quickly.
  2. Clients are Crazy – Scope Creep – As with any project there will be features, and requirements that change along the way. Partly because the clients will have better ideas, and partly because as they test they will have a better vision of what really needs tol happen. We know this creates tech debt. It will cause bugs, and it will put the project behind schedule. That could cost them money. Money they may look to recoup from you.
  3. Clients are crazy and rich? – Maybe or maybe not. Who is your client? Is it a large fortunate 500? Is it a small startup with VC money behind it? Regardless, they have the money to pay you, and that means likely the money to pay a lawyer. Tech E&O pays for your defense as well as any settlements or judgements.
  4. It makes you look credible – If given the choice, which do you think clients will chose? The guy that looks legit and appears to have his act together as underscored by his insurance policy?
  5. You may be required to – Clients are crazy like a fox – If you are looking at a bid that is requiring you to purchase insurance, what the potential client is looking for is that you have Tech E&O insurance. So if you are asked to provide a ‘certificate of insurance’ this is likely what they are looking for.

The bottom-line is that every business needs to protect themselves from the perils of their business. Tech professionals are no different. The trick is getting a policy that protects you from the risks you face. Start your quote online today!