Real examples of commercial protection for software developers

Our customer Chris is a software developer. He recently found himself faced with a claim for allegedly delivering sub-standard work that had resulted in his client experiencing a financial loss of hundreds of thousands of pounds. That’s where Hiscox were able to step in. Through his professional indemnity insurance policy, we were able to offer support and help him through the claims process.

Chris the software developer was hit by a surprising claim for sub-standard work

Chris was hired to develop a website for a company and, despite his best efforts, the project suffered a series of delays throughout production stages. When it finally went live, the claimant reported a high number of defects. His customer claimed that the delays and defects were all the fault of the insured, making Chris liable for the money lost.

As a professional freelancer, Chris has been working in software development for a number of years, providing his services to clients in a range of industries. He strives to deliver high-quality work that clients are satisfied with. He’s only human, however, and sometimes mistakes happen.

Thankfully, he had taken out professional indemnity cover within his Hiscox business insurance policy, which meant he was covered for any compensation payments. We worked with him to analyse the claim further and concluded that while there had been delays in finalising the project, these were not his fault alone. While there were a few issues with the performance of the website, the glitches were not as detrimental as the claimant suggested.

On the basis that the project was not delivered fault free, Chris agreed that he needed to accept some liability for the problems faced, despite it not being his sole responsibility. We moved to settle the case quickly, resolving it for a fraction of the sum the claimant had demanded.

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