What kind of insurance do programmers need? Any self-employed programmers out there?

[matt45923]

Hi,
I develop and sell java applications that are distributed on CD. I am wondering what kind of insurance I need? Any programmers in this forum famaliar with this? What does it cost per year? What insurance companies offer it? Ive called around but most insurance agents are not famaliar with software liability. I've read where people say all you need to do is form an LLC.. a laywer has told me that an LLC will only protect you if someone else in your company errors, if you cause a problem, you case still be personally sued.
I have also heard that if you are married, you can not be sued for any assets which have both you and your wife own jointly(house and saving account). Anyone heard this?

Thanks!
Matt

 

[stephbu]

I'm not a lawyer and I haven't played one on TV - but...

People are needed to sign contracts - however the signatories are not necessarily liable for breach of contract. If you sign on behalf of your company - you do so as an authorized agent or proxy for your company.

Being the company owner may skew where a lawsuit ends up - because you take responsibility for company actions. I'd guess that establishing an LLC with Liability Limit Insurance would help prevent that 'ripple' of liability within the company. (owners are next on the hitlist if the damages exceed the LLC's insurance cover - the same is true of personal insurance such as car insurance)

e.g. I sign a $1bn contract on behalf Microsoft as an authorized employee. If things go wrong with that contract - would I get sued by the 3rd party for potentially $1bn+ in damages? Answer is pretty easy... (I didn't preclude that MS wouldn't sue my a$$ off mind )

Regardless of my spew above contact a commercial law attorney and contract him/her to outline steps to limit your liability - ask him what steps he took to limit his liability - if it goes wrong sue him for negligence .

BCentral has some interest leads on keywords and concepts for business insurance
http://www.bcentral.com/articles/wuorio/119.asp