Small Business Insurance – Is There an App for That?
Actually, there is: our business insurance application. But before you get started, let's take a quick look at some of the risks you might face and the mobile app developer business insurance that can help protect your livelihood when they do:
- A client face plants in your office. One of your clients swings by your office to discuss an app that will deliver grocery coupons to his customers. After the meeting, the client trips on a loose piece of carpet, falls face first, fractures his wrist, and chips a tooth. If your business has General Liability Insurance, your policy should pay for the immediate medical costs. It should also cover legal bills if the client decides to sue.
- You deliver the "wrong" app. Okay, not exactly. You created a user-friendly, beautifully designed Android app. Unfortunately your client was also expecting an iOS version, even though that was never mentioned in the contract. Even if a court takes your side, your business may still face some hefty legal bills. Errors & Omissions Insurance can protect you when a client insists you somehow goofed.
- A data breach occurs on an app you designed. Let's say you build a mobile app for a local newspaper to handle customer payments and manage subscriptions. The payment service you use is hacked and the newspaper subscribers' home addresses and payment info are exposed. The newspaper loses frustrated customers and sues you for failing to protect its customers' information. Data breach lawsuits can run into the hundreds of thousands of dollars because of a client's lost business, damaged reputation, and credit-monitoring costs. The Cyber Liability Insurance portion of your E&O policy can help pay for those expenses.
- There's a fire at your office. You got your hands on the new Samsung Galaxy Note 7, and you leave it to charge overnight at the office. The next day, your office is a smoldering ruin because your phone caught fire. Too bad the recall was announced a week after your office became phone flambé. Your Business Owner's Policy, which bundles General Liability Insurance and Commercial Property Insurance, can help pay for the replacement and repair costs.
- An employee gets into an accident. While driving to pick up coffee for the office, one of your employees is in a car accident. She suffers whiplash and needs surgery on her neck. Your Workers' Compensation Insurance can cover her medical expenses. If she sues you over the injury, Employer's Liability Insurance (usually included in a Workers' Comp policy) can help cover legal expenses.
- An employee sues you over harassment. Mary is one of your best developers and has worked for your business for three years. You bring in a new business partner, who takes a liking to Mary. He asks her out repeatedly, despite her firm rejections. She gets fed up with his unwanted advances and sues your business over harassment. If you have Employment Practices Liability Insurance, it can help cover the legal expenses.
- A local investment firm hires you to build an app. The company wants an app that lets its customers view their portfolios and message their financial advisors. However, before you're hired, the firm requires your business to get a Fidelity Bond. If a coder working on the project tries to steal money from the investment firm or its customers, your Fidelity Bond can cover the damages.
Risk Management Resources for Mobile App Developers
Mobile app developer business insurance can cover the cost of common lawsuits related to software development, employment, and customer disputes. But it shouldn't be your only line of defense.
We created several resources to help you prevent costly incidents from the outset. Check out our blog for risk management and business growth tips, sample contracts to make sure your bases are covered when working with clients or contractors, and our other business resources.