What Insurance Do Vancouver Software Companies Need?

Insurance for Vancouver Software Development Businesses

October 24, 2024 / 5 mins read

Vancouver software companies can face liability risks. You can protect your software development company with a customized insurance policy that provides financial support should you face a lawsuit.

When you have customized software company insurance, you are mitigating possible financial losses from third-party liability claims or data breaches. Without business liability insurance, you will pay for any damages yourself, which could financially imperil your Vancouver software development business.

Are you located in Greater Vancouver or elsewhere in the Lower Mainland Region? Western Financial Group is a national insurance broker that has partnered with Canada’s leading insurers to meet your business insurance needs in the software development business.

Western is a trusted, national insurance brokerage that has partnered with Canada’s top insurance companies to provide commercial insurance. We work with our insurance partners to find the best coverage for your software development insurance needs.

We make the process easy by getting insurance quotes for you and giving you policy coverage options that you can choose for your Vancouver software company’s specific needs.

Vancouver software development industry

Vancouver is leading the way on software innovation in a sector that employs thousands in this city. Vancouver is a top tech hub in North America and its proximity to the Pacific Rim also makes it an ideal location for tech businesses that want to expand into Asian markets.

What Vancouver software firms need customized insurance?

  • Enterprise software companies
  • Application development companies
  • Software services companies
  • Cloud-based software companies
  • System infrastructure software companies
  • Productivity software firms
  • Video game developers
  • Website designers
  • Coders
  • AI and Machine learning
  • Retail management software companies

Liability insurance is the cornerstone of your software development insurance coverage. Here are the liability coverages that you need to help protect your Vancouver software company from lawsuits.

Professional liability insurance

Professional liability insurance is also known as errors and omissions (E&O) insurance and it’s essential for your Vancouver software business. It protects you against claims arising from professional negligence, errors, or omissions in the services that you provide.

It protect you from financial harm and helps cover defense costs, settlements, or judgments related to legal claims. In the case of a professional error claim, for example, your E&O policy would pay for some or all of the claim costs.

Commercial general liability insurance

Commercial general liability insurance protects your Vancouver software firm from a variety of risks, including the risk of a lawsuit arising from your business activities. CGL insurance covers third-party (customer/supplier/member of the public) bodily injury and third-party property damage.

For example, if a client trips and falls and is injured while visiting your place of business or if a client’s property is damaged, CGL insurance can cover the associated legal expenses, medical costs, and potential settlements.

What kind of risks does commercial general liability insurance cover?

  • Injury to a third party who is not your employee
  • Damage to someone’s property
  • Damage to rented property
  • Medical bills if someone is injured
  • Legal costs and settlement costs of liability lawsuits filed against you
  • Liability lawsuits related to slander and libel

Cyber liability insurance

You keep sensitive data belonging to your clients and your Vancouver software development company could be hacked by cyberthieves. Cyber liability insurance will help protect you financially should there be a cyber-attack.

Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages. Cyber liability insurance helps cover the costs for this.

Directors and officers liability insurance

Does your Vancouver software company have a board of directors? Directors and officers insurance provides financial coverage for legal expenses to help defend a board member or officer against claims. It typically covers misleading statements, reporting issues, and inaccurate disclosure.

This type of insurance also covers:

  • Negligent acts and allegations of misrepresentation
  • Breach of legal or fiduciary duties
  • Decisions that result in adverse financial consequences for shareholders
  • Wrongful dismissal and employee discrimination claims
  • Failure to adhere to federal and provincial laws and regulations

What other insurance do Vancouver software development companies need?

Commercial property insurance

Commercial property insurance provides financial support to replace or cover repairs to your Vancouver software business if it’s damaged by a flood, fire, or severe weather. It also covers vandalism and theft.

Commercial property insurance also covers contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.

Business interruption insurance

This type of insurance supports you when your Vancouver software company can’t operate due to a covered loss.

There are a number of losses that can force your software business to shut down. Some examples are:

  • Damage to your equipment from fire or vandalism
  • A major reduction in revenue due to a client/supplier facing losses of their own
  • A disruption in your supply chain

Business interruption insurance can help with these expenses:

  • Payroll
  • Rent
  • Utilities
  • Property taxes
  • Alarm monitoring
  • Relocation of your business

Commercial auto insurance

If you are using your car for your job in Vancouver’s software sector, it won’t be covered by your personal car insurance policy. You will need commercial coverage as part of your software insurance package.

How much does Vancouver software insurance cost?

There isn’t a set price to protect a Vancouver software development business with insurance. The following factors are usually considered when determining the cost of your business insurance:

  • Location(s)
  • Services provided
  • Number of employees
  • Years of experience
  • Annual revenue
  • Any past claims

What do I do if I have a claim against my Vancouver software business?

  • Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
  • Know your policy so that when you contact your broker you are familiar with what will be covered or not.
  • Document the damage. Take photos right away and write down what happened.
  • Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
  • Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
  • Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.

Here’s an insurance checklist:

  • Do you have the best business insurance rate that suits your work?
  • Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
  • Are you or your employees using personal vehicles for work?

Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the right business insurance for your Vancouver software development business. Our experts are available now to help you navigate the commercial insurance journey to protect your Vancouver business.

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