4 Risks Software Companies Face

Software entrepreneurs like you aresoftware insurance in the business of helping their customers get more done with technology. To achieve this goal, however, it’s important to understand the risks facing your company.

Here are four to consider.

Data Breaches

Each day, there are news reports of SaaS (Software as a Service) tools dealing with data breaches. Health care companies, the federal government, banks, big box retail stores, and even “discreet” online dating services are just a few of the businesses affected by data breaches in the past year. With SaaS, each web browser used to log in to the cloud becomes a possible point of entry for a hacker. That means that the confidential information stored in your software is vulnerable and needs to be protected as much as possible.

If a data breach occurs and results in financial loss or other damages for a business or individual using your services, your company can be held liable. What protection do you have in place for your software company in case of a data breach?

Defacement

Both software applications and websites are potential targets for defacement. Hackers access the site or application and make changes, often in the form of unsightly images or adding unwanted messages. Organizations serving religious, political, or high visibility causes are particularly vulnerable. Defacement discredits your software or website, causing your audience to lose trust in your company’s security.

Competitive Threats

As a successful software company, you face competitive threats every day. After all, SaaS is a competitive environment, and you can never be sure what new features or products your competition will offer next. However, some companies take the race for sales to a whole new level by attempting to steal intellectual property. How is your company’s intellectual property protected? What steps can you take to preserve your IP?

Errors and Omissions

Your business also faces threats from everything from accidental deletion of data to server failures. Again, you can be (and likely will be) held financially liable if issues arising from errors and omissions impact the businesses or individuals you are providing SaaS services for.

Keep Your Company Secure

Contact your insurance agency to discuss these and other risks your software company may be facing. Make sure your policy is sufficient. If you’d like to chat with the independent insurance agents at Kincaid Insurance, click the button below to contact us today. You can also reach our Rockport, Indiana office by calling 1-877-888-5506.

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