Dumb question, right? Wrong! Unfortunately, not every web designer or developer is insured. “Why would I need insurance?” “What could possibly happen?” Well, let me tell you, a LOT.
As a web designer and software developer, there are some pretty simple things that could happen to you that maybe you have not considered. Take us for example, we are located in LA, MO, and Warsaw. While all of our software is backed up with cloud solutions, most of our day to day coding occurs locally before it’s uploaded. Take the Midwest where tornadoes LOVE to threaten us. As you can imagine, we didn’t buy the cheapest equipment on the market and for us to lose all of the software, the computers, and our serves…okay, let’s not think about that, but it’s possible and something to consider.
Outside of “Acts of God”, there are dozens of reasons for having insurance. I know they are probably likable people, but let’s say another client of theirs and your developer have a falling out. Scope of work had changed, long hours and not getting paid, blah blah blah, you get the idea. Now they are ready to burn that client bridge and there is a lawsuit, having insurance could be their only saving grace. The insurance company will get a team of legal experts together to deal with the client and this could be settled out of court. If a client makes a claim against your developer, their professional indemnity policy will pay the defense costs. This isn’t just for situations that have escalated to court. Insurers want to solve problems before they get to that stage, so they’ll provide a team of legal experts to help negotiate terms with your client. Now the company doesn’t have to close. You’re safe!
What about Copyright infringements? This one is the most common claims that web designers are faced with. Even if they unknowingly or unintentionally used a photo, verbiage, content or videos that were licensed, they are still going to be in trouble, will need to meet for hours with attorneys and will have to spend time in court. Now, I bet you are wishing they had insurance? Still not convinced? Keep reading
Let’s say they are writing code for your new website they are building. It has been tested and has launched and all of a sudden the accounting department finds an error with their script and they have cost you thousands of dollars! OR they are cyber attacked because there is a data breach and you aren’t protected. Losses due to hacking and malware issues are also covered with insurance.
As a web design or graphic designer, they publish high quality designs on a schedule and a budget to make everyone happy. Sometimes things don’t work out as planned. Maybe you, the client, was slow to get your information, maybe their project manager has been out sick and now you are really far behind. This could put your hard work and their company at risk.
The Human Factor
We all know the company has a great reputation, but every once in a while, they get an employee that doesn’t love them as much as everyone else. Next thing you know, they quit their job and with them they take their desktop, software, phone, you know, those precious tools of the trade.
And the elephant in the room, most companies REQUIRE insurance. That seems reason enough. It will cover personal injury, property damage, medical expenses, completed products and personal and advertising injury. Reassuring your clients that you are covered will likely make them feel more comfortable and could be the final selling point to having them hire you. So yeah, you should care if your web designer or developer has insurance.
Tell us what you think!