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CONTRACTUAL LIABILITY FOR SOFTWARE COMPANIES
Protect Your Business Against Contractual Risk
Software developers often work under legally binding contracts which may include performance guarantees, SLAs, indemnity clauses, and financial penalties. Contractual liability insurance helps protect against breaches, delays, disputes, or financial loss claims arising from your obligations.
What Contractual Liability Insurance Covers
- Contractual obligations that result in financial loss to a client
- Failure to meet SLAs, deliverables or agreed milestones
- Claims arising from delays in development or deployment
- Liability caused by third-party integrations or APIs
- Intellectual property disputes arising from contracted work
- Liability for software defects leading to financial impact
FREQUENTLY ASKED QUESTIONS
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What is contractual liability for software developers?
It covers financial losses caused by failing to meet obligations outlined in a contract, including performance guarantees, SLAs, timelines and deliverables.
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Does PI insurance cover contractual liabilities?
Some elements may be covered, but many contracts create liabilities beyond standard PI cover. A specific contractual liability extension is often required.
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Is this cover needed for SaaS companies?
Yes. SaaS platforms typically operate with strict SLAs and uptime guarantees, making this cover highly recommended.