Calling all programmers, those of you that do it professionally at least. Do you have your own personal errors and omissions insurance? Should you? Probably.
I have been in development for a long time time, about 12 years, and for the web development world I live in, that makes me ancient. I carry my own errors and omission insurance for personal projects, just in case the GPL can’t protect me well enough. What is this insurance you ask?
There is a good article over at Insurance Journal that goes over exactly what it is and why you might need it. My question is a bit more complex though. If you are a professional programming, working on someone else’s payroll, do you need this insurance? If you are fired for incompetence, or laid off, and the company you used to work for finds a bug that has cost them $1M a week since it was implemented 2 quarters ago, do they have the right, or abililtty, to sue you for that loss? Perhaps. It all depends on where you live, what company, and the situation.
Being sued for something you did on the job, in the best interest of the company, under the leadership of someone else, is extremely rare. Most likely because it requires the company to admit they were less than diligent, didn’t do a very good job managing, and then makes them liable to their stakeholders since they are basically admitting an agent of their company screwed up. Companies don’t like to do that.
However, if you are working on a 1099 or a third party W2, you need to make sure you are covered. If you are on 1099 or doing corp-to-corp, you had better have insurance. You are liable in that case, in the absence of another contract, for everything you do and write. While you probably wouldn’t be found guilty of anything (I hope), it would be expensive to fight it, and better let the insurance company do it.
If you are on a third party W2, make sure the folks you are actually workign for have E&O insurance as an add on or rider to their general liablity. You could need them to protect you for something you did in their employ on behalf of one of their clients.
So, do you have insurance? Do you need it? I am not a lawyer, so none of this should be taken and blindly run with, but, ask yourself if you are covered, and if you have questions or doubts, find someone that knows and ask. It never hurts and could save you a lot of trouble later.