Professional Liability Insurance Case Study: Scope Creep
Let's say you're a victim of scope creep. A client hires you to build a machine-learning search module for its retail baby clothing website. You build the module and deliver it to the client, but now the client wants you to update all your code because the business has decided to sell teen clothes as well. This wasn't part of the scope – and no one told you about the business strategy shift.
If the client claims you didn't deliver what they wanted and files a lawsuit against you, Professional Liability Insurance can cover the following expenses:
- Attorneys’ fees.
- Damages you may owe the client.
- A settlement to end the dispute out of court.
- Miscellaneous court costs.
Lawsuits are expensive – no surprise there. The Court Statistics Project found that the typical breach of contract case costs $91,000.
Given how crucial technology is to your client's business, it's not hard to imagine a scenario when you're paying hundreds of thousands of dollars in legal fees because of a data breach, lost functionality, or another tech snafu that can cripple a business. Professional Liability Insurance can help protect you from that risk.
Learn more about Professional Liability coverage.