As a company providing development operations engineering or consulting services, you face a variety of liabilities and risks. From professional negligence lawsuits to natural disasters, unexpected events could hit your business and drain your company finances. Business insurance can help protect your business from these risks and back you financially in the face of any unfortunate incidents.

What insurance coverage do I need for my development operations firm?

There are many types of insurance available, but the following types of coverage are particularly important for development operations engineers to consider:

Professional Liability Insurance

When you provide clients with DevOps engineering services or consultation, they trust that your work will function as expected and your advice will be accurate. No matter how careful you are though, mistakes in your work can happen, and clients may suffer financial losses as a result. If that happens, they could sue you for damages. Even if your company has done nothing wrong, a client could sue simply because they perceive an error on your part. Professional liability insurance can protect your company from the risk of lawsuits brought on by dissatisfied clients alleging failures in services, advice, or professional work.

Example:

• Your company is hired to develop an e-commerce SaaS application. A security loophole is inadvertently left in the software, and hackers are able to access your client’s customer data, including credit card numbers and addresses. Your client sues you for failing to prevent the hack.

General Liability Insurance

Most companies have some level of general liability risk, even if they work in industries that are not physically dangerous. If your employees consult with clients at their locations, host clients at your own offices, or receive deliveries at your location, it’s a good idea to consider general liability insurance. There is always a chance that a non-employee could be injured or someone else’s property could be damaged in the course of your work. General liability insurance covers these third-party bodily injury and property damage risks. It also includes a personal and advertising injury component, which covers risks including libel, slander, and copyright infringement.

Examples:

• Bodily injury: One of your clients visits your offices to discuss a project. While at your offices, the client slips on a wet floor and fractures her wrist. Your general liability insurance would cover medical costs and legal costs if the client sues.
• Property damage: Your employees visit a client’s office for a consultation. One of your employees trips and knocks over an expensive vase, shattering it. Your general liability insurance would pay for the damages.
• Personal and advertising injury: A blog post hosted on your website suggests that one of your company’s competitors is negligent in its designs and provides software that has significant security loopholes. The company sues for libel. Your general liability insurance would pay for the lawsuit and any resulting settlements.

Cyber Liability Insurance

In the IT industry, your business depends on digital systems and networks that may be vulnerable to cyberattacks. No matter how secure you may think you are, cybercriminals are constantly finding new exploits and loopholes, so there’s always a risk that you may be hacked or your data may be held for ransom. If your systems or data are illegally accessed or stolen, you could be held liable, and the costs of recovering from a cyberattack are high. Cyber liability insurance can provide financial assistance to help your company stay in business in the event of cyberattacks, and insurers often provide resources to help you prevent incidents as well.

Example:

• One of your employees is fooled by a phishing email that appears to be from a coworker asking them to download a file. The file infects their computer with a virus that spreads through your company’s network, corrupting data and delaying several major projects. Your insurer will pay for the costs of hiring consultants to remove the virus and restore data. It will also reimburse you for income you lost due to the delays.

Commercial Property Insurance

Most IT companies operate out of office space they rent or own, and as a DevOps engineering firm, you likely rely on computers and other technology equipment that could be difficult or expensive to replace. If an unexpected disaster strikes, repairing or replacing your damaged property can be costly. Commercial property insurance will help your company recover if a catastrophe occurs.

Commercial property insurance covers the following:

• Buildings belonging to or leased by your company
• Contents of the building, including furniture, computer equipment, and artwork
• Property of others while it is under your care, custody, or control

Example:

• Your company’s offices are broken into over the weekend, and laptops, servers, and other electronic equipment of value are stolen. Your insurer will pay for the cost to replace the stolen equipment and make repairs to the building from the break-in.

Additional Coverage

• A business owner’s policy bundles general liability, property, business income, and extra expense coverage into one package. For small or midsize companies, this type of policy could help you obtain a wide range of coverage while paying less in premiums than you would if you bought each policy individually.
• Commercial auto insurance is necessary for any business that owns vehicles titled under the business’s name. It covers bodily injury and property damage if the driver of the vehicle is at fault in an accident, as well as the value of the vehicle itself if it’s damaged by a collision or another peril.
• Business income insurance will reimburse you for lost income and operating expenses if your business is unable to operate due to a covered reason, such as fire, storm damage, or other property damage.
• Workers’ compensation insurance is legally required for companies with employees in most states. It covers the medical expenses and lost income of employees who are injured or fall ill while working. For IT companies, repetitive strain injuries are common sources of workers’ compensation claims.

Pricing and Quotes

Pricing for business insurance will vary based on the type of insurance coverage and the risk profile of your business. Insurers consider factors such as:

• Business size
• Industry
• Location
• Number of employees
• Claims history

Businesses with higher risks will have higher premiums than those deemed lower risk. For example, a DevOps consultancy with a history of frequent claims will face higher premiums. Premiums also rise as you increase the limits of insurance. Different insurance companies have different models for rating risks, so it is worth comparing pricing across different insurers.

In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer coverage for technology businesses:

Provider	General Liability	Professional Liability	Business Owner's Policy
Embroker	??	??	??
CoverageSmith	??	??	??
CoverWallet	??	??	??
Hiscox	??	??	??
Thimble	??	??	??

Final Word

Your development operations company could be held liable for a variety of risks, from physical dangers such as fires and storms to cyberattacks and lawsuits brought by dissatisfied customers. It’s important to consider your business’s needs and purchase a range of insurance that will financially protect you in the event of an unexpected disaster or lawsuit. This will ensure that you and your clients will feel confident that your business will be able to cope with any major incidents that arise.