Business Insurance: An Introductory Guide for Web Designers and Developers

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If you can’t think of any reasons as to why you might need business insurance – think again!

Web designers and developers usually specialize in creating web design products such as websites, web graphics and other web programs for clients.

But what happens if a project with a client goes wrong, and you’re facing a potential lawsuit? What will you do if there is a security breach, or an accident in your office?

This is where the need for business insurance comes in. In fact, you might even need to insure your gear, in case you lose or damage them.

Here’s a more in-depth look into the topic of insurance for web design and developing jobs, that will guide you in the right direction.

What Does Business Insurance Protect You From?

The main aim of insurance is to help you get back on your feet, after facing an obstacle or loss in your business. It gives you legal support, and helps you solve issues without being taken to court.

If you’re still not convinced about what exactly business insurance would protect you from, let’s explorefew familiar scenarios to you. Perhaps after reading these, you’ll realize the importance of insuring your business!

– Unsatisfied Clients

Suppose you made a web platform for a client, to the best of your understanding. However, the client doesn’t think it was effective. You are willing to work on it again, if he gives you more compensation.

However, the client thinks this is unfair, and is refusing to pay for the work you have done, until you apply the corrections. On top of that, they’re angry and threatening legal action if you don’t do what they are asking for. This whole situation can be easily avoided through a type of insurance known as “professional indemnity”.

This would ensure that a team of legal experts are supporting your business, and helping you solve this matter, without it escalating. This also involves the safety net of a mitigation costs clause, which means you would get the money you are owed by your client, from the insurer.

– Project Delays

Working on web designing and developing means having to meet tight deadlines. Sometimes, projects have set launch dates, and a missed deadline on your part can cause a lot of problems.

However, even web designers and developers are human beings. It’s not always possible to meet these deadlines for issues beyond your control. You might also be facing issues in your own business that might lead to delays.

In such cases, clients may not always be understanding. They might also not want to pay the full amount because of the delay. They are incurring losses, after all.

Even in such cases, you can get legal backup if you have insurance. You might also be paid the amount you are owed by the insurer, in case the client does not agree.

– Choosing to Leave a Project

Projects don’t always go according to plan, and web designers and developers face a variety of clients. Even if the clients seem okay at first, they might turn out to be difficult and noncooperative down the line.

Infact, sometimes, in hopes of getting money, developers and designers often ignore early warning signs of bad client behavior and take on the projects anyway. However, it is very normal for a few relationships with clients to turn sour.

In such cases, you have every right to walk away from a project. However, this can be messy, as clients might not want to pay for the work that has already been done, or even ask for compensatory fees for the delay and hassle.

If you have legal support in the form of insurance, you can deal with this situation professionally. Perhaps, settlements could even be made out of court, with all the expenses borne by the insurer.

Business insurance lets you fire a client if you have to.

– Disputes over Intellectual Property Rights

Web designers are providing services to people by creating unique work for the web. They put in time, knowledge, effort and their creativity behind these projects. So, whatever they create, is essentially their intellectual property.

However, since they are exchanging their services for money, clients may mistake this as a handover of their property rights as well. Therefore, arguments over copyright infringement are also very common in these jobs

Insurance will help you achieve clarity in these matters and strengthen your claims on copyright infringement, trademarks and slogans. It will give you the backup and legal advice you need in order to claim rights over your work, without having to face losses.

Types of Insurance Policies for Web Designers and Developers

There are a variety of insurance policies suitable for web designers and developers. Let’s explore the types of policies to help you choose.-

– General Liability Insurance For Web Designers

This policy mainly addresses financial issues that businesses might face. For instance, if your client is harmed in some way because of your product, or while visiting your office, they might blame you for the costs they are facing.

Having general liability protects you from having to pay for this, It also covers every product and service you offer automatically. The policy renews automatically so you don’t lose coverage.

– Business Owners Policy (BOP)
This policy is especially useful for small businesses like web designing and developing. It goes beyond the usual risks and addresses other issues like damaged equipment and software, loss of files and data, etc.

For instance, if your computer stops working because of a power surge, a BOP will pay for the repairing and even a new computer. You’ll also be given the income you are losing while you’re addressing this issue.

– Professional Liability

Professional liability will have your back if you make a significant error during a project. There’s no denying that this happens, so might as well stay protected. So in case you’ve made an error in your work like leaving out a key piece of information that the client is trying to charge you for, professional liability will protect you.

– Workers’ Compensation

If you run an office with employees, a workers’ compensation insurance is mandatory by law. This deals with your employees’ medical expenses, in case they are ever injured, or become ill, because of their work.

Conclusion

When you run a business, facing problems is quite normal. Adversities are part of our lives and business and unavoidable. Your best defense to protect yourself, your investment, and your business is getting the right business insurance..

Sure client agreements, building networks and monitoring cash flow is important. But at the end of the day, you need professional legal advice and support, and a full proof back up plan.

Nothing in business and life comes without risks.. So be wise, and get insured!

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