We are a small software shop and feel we have more coverage then we need.
When we first started they set us up with a professional services package that included all kinds of things including property insurance (for our office and it's contents), some general liability and E&O.
So what are other small shops out there doing? I know this is a subjective question but how much coverage is really necessary for a small software company? We are thinking the base E&O package they offer (which is about 4 times our gross) not only seems excessive, but unneeded.
Some back story. We build our own products (on our own and with partners) that we put out for sale as well as do custom development work.
If you're doing custom software development you really do need E&O (Errors & Omissions ) insurance. I have several friends that are independent software consultants and they all have said that lawyers have told them they need to have E&O to protect themselves.
I don't know anything about what is considered a "good" coverage rate so perhaps you do have too much coverage but that's something your lawyer can probably help you out with.