Potential client asked If I'm insured - is this a deal killer if no?

[TreyAllDay]

So, I own a software company that allows businesses to create intranets and other systems.

Obviously there is some sensitive data that can be hosted in these systems like company files, user accounts, user meta-data. I have a potential client asking about Errors and Omissions insurance, liability insurance.

I'm kind of winging this side of it, I've pitched to multiple companies, already have a big client, and no one has ever asked..

I always assumed I would be more the one taking the risk should a data breach occur (as unlikely as it is). I'm assuming they think it's a risk that we'd be worth nothing should they sue us?

How common does this come up, and is it typically a deal breaker?

 

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[G-Man]

How common does this come up

Almost always.

is it typically a deal breaker?

Almost always.

 

[U2ForNow]

What G-Man said. If you're serious about your business, get a policy. Not sure where you are but I would guess a policy is only a few hundred dollars if it's a small operation.

 

[The-J]

Obviously there is some sensitive data that can be hosted in these systems like company files, user accounts, user meta-data. I have a potential client asking about Errors and Omissions insurance, liability insurance.

Get insured man

 

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[MJ DeMarco]

BizInsure.com -- you should be able to pickup a policy pretty easy, and not too expensive.

 

[mazo]

If were going to play the game the least we can do is play for real. Get yourself some cover

 

[becks22]

My industry requires E & O Policy. Most of my clients ask me to send them my cert of insurance annually before we renew contracts. It's $600 or so for a 3 million dollar policy. It's worth it to me, since I know some of my local competitors don't have it and have missed out on clients because of it. I work in an industry that is risky by nature so I am not sure if my price is more expensive than software but I also have access to lots of personal and potential information which is why I like my policy to stay at 3 million.

 

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[TreyAllDay]

My industry requires E & O Policy. Most of my clients ask me to send them my cert of insurance annually before we renew contracts. It's $600 or so for a 3 million dollar policy. It's worth it to me, since I know some of my local competitors don't have it and have missed out on clients because of it. I work in an industry that is risky by nature so I am not sure if my price is more expensive than software but I also have access to lots of personal and potential information which is why I like my policy to stay at 3 million.

I guess you learn something new every day! Thanks for the info

 

[Michael Burgess]

I personally avoided insurance for as long as I felt like I could (based on the belief it would be too complicated or expensive)... recently got a $2M policy that covers a stupendous amount of possible screw-ups or not-at-fault accidents, and costs about $100 a month. Definitely worth the peace of mind AND you can tell your clients you're covered! Do it. haha

 

[LuckyPup]

So, I own a software company that allows businesses to create intranets and other systems.

Obviously there is some sensitive data that can be hosted in these systems like company files, user accounts, user meta-data. I have a potential client asking about Errors and Omissions insurance, liability insurance.

I'm kind of winging this side of it, I've pitched to multiple companies, already have a big client, and no one has ever asked..

I always assumed I would be more the one taking the risk should a data breach occur (as unlikely as it is). I'm assuming they think it's a risk that we'd be worth nothing should they sue us?

How common does this come up, and is it typically a deal breaker?

The guy wants peace of mind. Play this for him:

View: https://www.youtube.com/watch?v=a5dpBpaFiMo

 

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