Software companies include computer programmers, software developers, and website designers. They primarily write, modify, test, and support software according to the needs or requests of their clients.

Whether you develop large-scale custom software or you’re an independent developer, your business is exposed to numerous risks every single day, with every interaction with a client or the general public. You need tailored South Carolina business insurance solutions to protect your business from the financial fallout of an accident, a fire, or a lawsuit, which could destroy your business overnight.

A South Carolina independent insurance agent can help you find the software company insurance you need that covers your risks.

Software Company Insurance in South Carolina

In 2019, nearly $6 billion in commercial insurance claims were paid in South Carolina across businesses of all sizes.

No matter what industry you’re in, and whatever  the size of your business, you’re not immune to business risks that need to be protected with insurance. Software company insurance in South Carolina is a package of commercial insurance policies that are tailored to the unique risks involved in the software industry.

Whatever unique services you specialize in as a software developer, you need business insurance to protect you from risks that you are exposed to in your day-to-day business operations.

Most software companies in South Carolina will need broad coverage by commercial property insurance and commercial general liability insurance. In addition, you’ll need a variety of policies that enhance your property and liability coverage to include risks that are unique to your business.

How to Insure a Software Company in South Carolina

A South Carolina independent insurance agent can help you find the following types of software company insurance.

General liability insurance for software companies in South Carolina

Commercial general liability (CGL) insurance for software companies offers broad protection against third-party bodily injury and property damage claims. Let’s say a client claims that your employee damaged several computers while working on-site. The client could make a claim for damage, and your CGL policy would pay. Likewise, if a client, vendor, or delivery person slipped and fell at your office, your CGL policy would pay for any medical expenses or related costs if a claim were filed against your business.

You could be sued in both of these cases, and for many other reasons. Even if the suit is unfounded, you have to defend yourself. A general liability policy would protect you in these circumstances and pays for costs related to such lawsuits, up to the limits of your policy.

A general liability policy also protects you against certain intellectual property claims related to images, code, or other copyrighted material. It pays for claims related to copyright infringement, advertising liability, slander, and libel.

Commercial property insurance for software companies in South Carolina

Whether you own your building, lease your office space, or have a home office, you need some type of protection for your business property. Commercial property insurance covers damage to a building and its contents (computers, office equipment and furniture, supplies, fixtures, etc.) if it is damaged by a weather event, fire, theft, vandalism, and other causes of loss. Most commercial property policies also offer coverage for business interruption, which helps you pay for ongoing expenses if you must temporarily close or relocate due to a covered property loss (e.g., a fire).

Professional liability insurance for Software Companies

Professional liability insurance, or errors and omissions (E&O) coverage, protects software companies in South Carolina when they make a professional mistake that financially harms a customer.

Your customers expect a certain level of expertise from you, and if you fail to deliver or are somehow negligent, you will very likely be sued for damages. Consider the following errors or mistakes, and the potential harm to a client:

• Failing to complete a project on time
• Coding errors cause a glitch that creates downtime and lost revenue for a client
• System design errors
• Glitch exposes a client’s system to hackers, or any error that leads to security vulnerabilities
• Program or application doesn’t meet client’s specifications

Because errors and omissions insurance covers claims that are not covered by your general liability policy, this is an essential policy for every software company in South Carolina. Your professional liability policy will pay for your legal defense, including attorney fees, court costs, and any settlements or judgments that you must pay.

Other important coverage for software companies in South Carolina

In addition to the policies described above, software companies will need to work with their insurance agent to determine their need for the following types of coverage:

• Workers’ compensation insurance is required for most businesses that have employees. It protects your employees from the costs of work-related illnesses and injuries by paying for medical expenses and lost wages. Repetitive motion injuries, such as carpal tunnel syndrome, are common among software developers and programmers. Workers’ compensation insurance helps them get the care they need to recover and return to work.
• Employment practices liability insurance protects you if an employee sues you for discriminatory employment practices.
• Inland marine insurance protects computers, equipment, and tools that you transport off-site for use at a client’s location. Once your business property leaves your office, it is not covered by your business property policy. Inland marine insurance will cover that equipment if it is stolen or damaged while it is in transit or is being stored in another location.
• Cyber liability insurance protects your business if you or a client is the victim of a data breach that results from your work.

Benefits of Software Company Insurance in South Carolina

Software companies in South Carolina may face the following risks:

• Unhappy or dissatisfied customers
• Trademark or copyright infringement
• Property damage caused by you or your employees
• Workplace accidents and injuries
• Theft or vandalism
• Weather events, fires, and other property damage

But with software company insurance in South Carolina, many of these risks are mitigated. While your insurance may not stop these types of events from happening, it can help you cover the related financial losses, continue to serve your customers, and stay in business for the long term.

How Much Does Software Company Insurance Cost in South Carolina?

The cost of software company insurance in South Carolina depends on several factors, including the size of your business and the types of policies you need to cover all of your unique risks.

Some of the variables that will help determine your cost for software company insurance coverage include:

• Number of employees
• Value of your physical assets
• Location and size of your building or office space
• Types of services you provide
• Size and scope of the projects that you take on
• Your professional liability risk
• Your claims history and length of time in business

An independent insurance agent can work with you to obtain multiple, customized quotes so you can choose the business insurance programs that best meet your needs, cover your risks, and fit your budget.

How a South Carolina Independent Insurance Agent Can Help

Insurance for software companies is complex, and selecting the right coverage for your specific business risks can be a challenge. You will need to take a close look at how you operate, and the particular exposures your business needs to cover.

An independent insurance agent can obtain fast quotes from highly rated insurance companies that can write policies that are tailored to your specific needs. You can compare quotes and purchase all of the coverage you need from one agent, even if you choose policies from multiple insurance companies.

A South Carolina independent insurance agent can also provide professional advice and consultation on other ways to minimize the risks to your business.