How a simple insurance policy can help you land more IT projects

Are you providing IT services as a side hustle? Or maybe you are a full fledge contract developer or web site designer. How do you set yourself apart? Of course, you have your portfolio or past projects, each done in a different language to show your versatility. But what about the business side? As crazy as it sounds, we see home builders, plumbers, and electricians, roofers and other construction professions tout the fact that they are licensed, bonded, insured. Why? Simple, they are trying to try to signal to the client that while they are willing to do the best work they can, they also want to cover the what ifs. What if the plumbing doesn’t work? What if they mess up etc., etc. They are signaling they have the contingencies covered.

Why don’t we see this in the tech world? Are you signaling that your contingencies are covered to your clients? Can you say you are Licensed, Bonded and Insured? Literally, probably not. I don’t know of licenses or bonds, but insurance does exist. Insurance against what? Your failure to perform as expected.

We know you are collecting requirements from all the stakeholders, defining scope, creating the work breakdown structure, and who of the stakeholders is responsible for what, right? You are documenting change requests and cautiously guard against scope creep, minimizing tech debt, and your code is clean as a whistle without any bugs, right? Your projects are on time, and under budget. If you are saying yes to every single one of these, you may be the world’s greatest developer. Each one of these areas introduces an element where things can go wrong.

Ultimately you are building something. Things can go wrong, and while it may not require that you tear out drywall and redo the wiring, The modification of code is a time consuming and costly process, and while insurance won’t cover this cost per se, these situations can make for some angry clients, who may be more inclined to sue because of the cost and time delays.

Ultimately what do you need coverage for? It depends on exactly what you are doing. If you are one of the many work-from-anywhere tech contractors you may not have need of a traditional generally liability policy, you don’t really have be concerned about a client slipping in falling in your place of business (or maybe you do), no you are more likely to be exposed to professional liability. Also known as Errors and Ommissions or Malpractice insurance. When hired you are expected to build systems that will be expected to perform to the agreed upon goal. When things go sideways, well you need Tech E&O coverage. So be as least as good as your local plumber, and start touting you are insured, you may be surprised at the difference it will make in your bids. Start your quote today online!