Specialized PL Prepares Software Developers for the Unexpected

Mar 2021

Canada has a robust and pervasive software development industry. Cities currently attracting a high number of software engineers include Ottawa, Waterloo, Toronto, Calgary, Mississauga, and Vancouver. Canadian developers work in organizations ranging from startups and government agencies to publicly-traded corporations. They also work in a variety of different industries, from information and communications technology (ICT), to finance, to media and education, to healthcare. According to a 2017 Annual Developer Survey, 16.7% of software development organization types were sole proprietorships or partnerships, not in startup mode; 22.1% were publicly-traded corporations, and 36.3% were privately-held limited companies, not in startup mode. (1)


Whether they’re a software consultant working for a small company or managing a large team of software developers, these professionals could be sued if a client believes they have made an error or omitted critical information on a project. Even if the software developer was not at fault, the legal costs of one lawsuit could cost these service providers their reputation while incurring hefty legal fees.


Securing Software Developers in Uncertain Times with Tailored Insurance Coverage


As professionals operating in a rapidly-evolving industry, software developers need to be prepared for the unexpected. Whether it’s an error in a line of code or unexpected changes or customization requests from the customer that create project delays, these professionals need to be prepared in case one small error or change leads to major problems or liabilities.


Many software consultants and companies have Commercial General Liability (CGL) Insurance in place. Unfortunately, these policies typically don’t cover claims resulting from services or advice. As a result, software developers could face legal action and be held financially responsible.


South Western Group offers IT/Technology Professional Liability Insurance tailored to software developers. This unique form of coverage can help cover any legal expenses should the software professional be taken to court as a result of their services or advice.


Broad Coverage and Professional Counsel from Industry Experts


Service providers offer their professional advice and counsel, with the understanding that they will perform their best efforts and exercise reasonable care. Sometimes, however, a service provider might lose information, damage property, defame a third party, forget to execute a necessary step to complete a project, or otherwise err in the execution of their duties.


SWG PL – IT/Technology Liability insurance is a packaged E&O policy providing coverage for the multitude of exposures faced by technology companies. Its tailored E&O covers a broad range of IT risks for small to large-sized firms operating in various disciplines, including programming, IT consultancy, IT project management, network support services, website design, and more.


Coverage Highlights


Distinct insuring agreements provide affirmative third-party coverage for:

● Professional and Technology Services Liability

● Media and Advertising Liability – includes coverage for infringement or dilution of trademark, title, slogan, trade name, trade dress, service mark, service name, copyright, plagiarism, and misappropriation of ideas or information

● Technology Products Liability – includes loss of use of technology products

● Network Security and Privacy Liability – includes coverage for the failure in security that results in unauthorized access, use, tampering, denial of service, or the introduction of malicious code into data or systems, including disclosure of personal identifiable information

● Optional Cyber extension (first-party coverage)

● Limits available up to $5mm

● Defense costs in addition

● Claims made policy form; Insurer has the “duty to defend”

● Coverage on a worldwide geographical basis

We Cover:

● Computer Consultants

● Computer Programmers

● Software Developers

● Database Administrators/Designers

● Hardware Installation/Support

● Internet Services Providers

● IT Consultants

● IT Project Managers

● IT Training Consultants

● Website Designers

● And more

Visit our policy page for more details. Or, if you didn’t see what you were looking for on this list, contact us.


Content is current as of the date of broadcast and is subject to change without notice.



  1. http://brookfieldinstitute.ca/wp-content/uploads/BrookfieldInstitute_StackingUp.pdf