Insurance for Web Designers and Developers
Are you a web designer? Do you dabble in web development, or is it your career? If you build websites for clients or simply update their existing website with the latest and greatest design, you can be liable if something goes awry. If your client is unhappy with your work, you fail to deliver on time, or it doesn’t function as they’d hoped, you’re opening yourself up to lawsuits. If you’re a professional web designer or web developer, this is an important way to protect your business.
What Web Designers Insurance Should Include
So what do you need to protect your small business from costly lawsuits? Here’s what we recommend for business insurance coverage:
Professional Liability Insurance
Professional liability insurance—often referred to as errors and omissions insurance (E&O Insurance)—provides coverage for your business if you’re accused of negligence, miss contracted deadlines, are hit with copyright breeches, or a customer claims libel or slander. Here are some examples of why you might need website design insurance:
Example #1: You’ve agreed on a contract with a web design client to completely build and launch their website by a set date. Unfortunately, you’re constantly hitting setbacks: you've lost a few employees and one of them didn't deliver their portion of the work. You can either deliver the website on-time—but unfinished—or you’ll have to push the launch date. The client is upset that you’re delivering the website unfinished and asks for a refund for the incomplete content. Your professional liability insurance can help cover the cost of refunding the client that money.
Example #2: Another client claims that the product you delivered is not what they agreed to and doesn’t function as they intended. They claim you committed errors in the process and they sue your business for negligence. Professional liability insurance can step in to cover the court costs and settlement amount.
Professional liability for web designers should be considered an important part of your business insurance package.
General Liability Insurance for Web Designers
General Liability Insurance provides protection for your business from claims of third party bodily injury or property damage (as well as personal/advertising injury). You may not think the coverage is necessary because your business is largely remote. You may have little face-to-face interaction with clients. However, if you conduct ANY of your business outside the home, you put yourself at risk.
Example #1: You speak at a web design conference and have a rental booth set up to talk with attendees after your workshop. Unfortunately, someone trips over materials that you left on the ground and they hit their head on your table. Because the venue wasn’t responsible for your items, you’d be held liable for that person’s medical expenses and settling a lawsuit.
Example #2: You meet a potential client for coffee and clumsily bump into the table, knocking both of your computers to the floor. General liability insurance can cover the cost to repair the property damage.
Business Owner’s Policy
Traditional business owner’s policies (BOP) are a bundle of general liability insurance, business property insurance, and business interruption insurance. Some insurance companies offer business property insurance as part of the package—that would cover your expensive equipment (laptops, external hard drives, digital media files, etc).
Example #1: Your home-office was struck by lightning. Luckily, the property is fine—but your electrical is fried. Because your laptop was plugged in and charging, it appears to have been fried. It seems that you’ve lost all of the data stored on your computer. However, your BOP may cover the cost to restore or replace that lost data.
Example #2: Let’s say you decide to leave your home office and spend the day working in a coffee shop. Unfortunately, another customer trips over a rug and their coffee goes flying—all over your laptop. It’s completely destroyed. Your BOP can help cover the cost of replacing your fried computer.
Other Policies Web Designer’s Should Consider
Cyber Liability Insurance: If you are the target of a cyber attack or data breach, this insurance coverage steps in to help notify clients, put fraud detection services in place, and handle any lawsuits that arise.
Surety Bond: A client may require you to purchase a bond to back the work that you’re doing. If you fail to complete a project or they have to hire someone else to fix mistakes, the surety company will reimburse them—and you’re responsible to pay the surety back.
Workers’ Compensation Insurance: If you hire employees, you’re required to get workers’ compensation to protect your employees. If they get injured or become ill on the job, workers’ comp can cover their medical expenses and lost wages.
Commercial Auto Insurance: If you use a personal vehicle for any business-related purposes—even if driving to meet a client—your personal auto policy may not cover the cost if you're in an accident. That's where commercial auto steps in.
How Much Does Web Designer Insurance Cost?
Insurance for web designers can vary depending on numerous factors:
- The type of policies you choose
- Coverage limits and deductibles
- The insurance company you choose
- Whether or not you want to insure your property
The cost of general liability can start in the low $20s for monthly coverage. The best way to get an accurate quote on coverage is to speak to an agent.
Get a Free Web Design Business Insurance Quote
Throughout this article we've demonstrated the necessity of insurance for web designers. If you’re in the world of web design, it’s safe to say you do see some risk with your line of work. To properly protect your business, you need to get the right insurance coverage. You can give us a call at 1-877-907-5267 or complete the form at the top of the page to receive a free quote.
Related Articles: Errors and Omissions Insurance, Cyber Liability Insurance