What is App Developer Insurance?
Besides knowing the cost of app developers insurance, you need to know what it covers and its importance to be able to select the best policy for your business. Therefore, app development insurance coverage protects app developers from any liabilities that could occur while delivering a mobile app to their clients. As a professional app developer, you know the risks surrounding this process.
Whether you are developing an app for a wide range of devices or a specific one, there are possibilities for errors. Therefore, having professional liability insurance will protect your business but you need insurance coverage that will broadly protect you from all of the risks involved with your business operation. And that might be general liability insurance.
As an app developer, it is your responsibility to ensure that you meet your client's needs by developing high-quality apps. All your products should be robust and deliver as expected. Mobile app developer insurance is meant to protect you from any of these risks while you develop and deliver your mobile app services. App developer insurance protects you from a wide range of claims, preventing unnecessary expenses.
App Developer Liability Insurance
Generally, app developer liability insurance protects against claims against app development businesses. Insurance companies offer three kinds of liability insurance for app developers:
General Liability Insurance for App Developers
Most app developers don't interact with their clients physically. In fact, a majority of them don't have offices and run their multi-million business from their living room! However, this doesn't rule out the risk of costly claims from third parties.
On the day your client decides to show up in your humble office, he accidentally trips over the large hip of wires and severely injures his ankle. If the client decides to sue you and wins the case, not only will you spend money on attorney fees but also on compensation for pain, suffering, and punitive damages. General liability coverage in application developer insurance pays for everything so that you don’t lose money.
General liability insurance doesn’t only cover the personal injuries of a client in which you’re at fault. This policy will also cover property-damage claims. Again, the function is similar. If someone files a property damage claim against you, general liability will pay for defense costs and settlements.
Are you worried about other claims aside from those because of personal injury or property damage? If that’s the case, you can upgrade general liability insurance by adding the following optional policies:
When your app development business runs an ad that potentially invades the privacy of your clients, they could file a claim against you. For instance, when you accidentally reveal your client's private information in an advertisement, you could face a costly lawsuit. This is why you need to add an advertising injury cover to the general liability coverage of your app dev insurance policy that protects your business against such a claim. By doing so, you prevent the risk of financial losses.
How about rented premises liability coverage? What’s the use of this if added to general liability insurance?
Rented premises liability coverage is extremely useful if you’re renting someone’s space and using it as an app development office. Even if you’re not the owner, you’re responsible if something happens to that commercial space. The job of rented premises liability coverage is to reimburse the property owner if the space you’re renting gets damaged or destroyed.
Cyber Liability Insurance for App Developers
In the world of app and software development, cybersecurity is extremely essential. For instance, a large company comes to you and requests that you set up a payment portal on their website, which holds sensitive details. Any hacker could be interested in such information, increasing the risk of a security breach. In some cases, the hackers may successfully hack the system no matter how tough your security protocols are. This could lead to the client filing a claim against you. It is important to note that lawsuits involving data breaches are extremely expensive and could cost hundreds or thousands of dollars. If you lose the case, you could go bankrupt. Cyber liability insurance policy helps pay for all or part of the settlement as well as the legal fees.
Related: Web Developer Insurance
Errors and Omissions (E&O) Insurance for App Developers
No matter how skilled and experienced you are as an app developer, you can still make mistakes. When you make such mistakes, an E&O insurance policy is there to protect you. For instance, when you make a serious mistake when developing an app that ends up affecting your client, they could sue you for damages. Furthermore, some clients could claim you made a mistake in the app even when you know you did the right thing.
As a professional app developer, you are expected to deliver exactly what your client wants, and things don't always turn out like that. This is why you need an E&O insurance policy that protects you against such damaging claims. This policy also helps keep your business reputation intact. >
Commercial Auto Insurance for App Developers
You might be a mobile app developer digitally nomading with your van or camping trailer around the country while working. When your vehicle runs into another car, the victim could file a claim against your business. You will have to cover the medical expenses and all the repairs. This could be costly, especially if you are getting the money out of your pocket. You can avoid that by getting comprehensive mobile app developer insurance coverage like commercial auto insurance.
Commercial auto policy found in most comprehensive application developer insurance coverage won’t only kick in if you’re at fault for a vehicular accident. It will also help if your vehicle gets damaged or experiences issues during a trip.
Physical damage coverage is inclusion in commercial auto insurance for app developers. It has two forms - collision and comprehensive.
Collision physical damage coverage will take care of parts repair and replacements costs if your vehicle crashed into another vehicle, got involved in an accident caused by another driver, or collided with an object on the road resulting in damage.
On the other hand, comprehensive physical damage coverage will take care of parts repair or replacement costs if your vehicle got damaged because of fire, theft, vandalism, hail, storm, and other covered perils. Comprehensive and collision physical damage coverage work hand in hand to ensure that your car goes back to looking new and presentable after something bad happened.
Something might interrupt your journey - car overheating, malfunctioning battery, busted tires, faulty braking system, or running out of gas. Emergency roadside assistance will be useful for these things. In practice, what this inclusion does is reimburse what you spent for towing, battery delivery and replacement, gas delivery, and other emergency roadside assistance services.
