Startup to Offer Open Source Insurance

ThePretender writes "From the Infoworld article, 'Open Source Risk Management LLC (OSRM), a startup company that last month hired Pamela Jones, editor of the popular Groklaw.net Web site, as director of litigation risk research, plans to soon begin offering insurance policies to companies using open source software but fear that they may be sued, according to a company spokeswoman'. What's next - Developers having to pick up 'code malpractice' insurance? Egads." Might as well get some alien abduction insurance while you're at it.

Comments

Malpractice Insurance

[Shakrai]

What's next - Developers having to pick up 'code malpractice' insurance? Egads.

They already have it. The agency I work for has several carriers that will write a malpractice (officially called "Professional Liability") policy for computer nerds. The standard one that I've seen provides a million dollars of coverage in the event that you screw up and cause something like data loss or the like. The policy itself is pretty broadly worded and could cover everything from bugs in a program you wrote to a general mistake of stupidity dealing with media. As I recall they start at about $1,200+ a year depending on the type of business and the people involved.

All insurance really does is protect you from losses that you couldn't (or don't want to) afford. The comment from the summary sounds sarcastic (as well as the "throw-your-money-away dept." tagline) but in reality in this sue happy world these types of policies are not a bad idea. Do you want to lose your business and livelihood over an honest mistake and some sue happy customer? A few hundred or thousand bucks for peace of mind is a small price to pay in this day and age.

Re:Malpractice Insurance

[Shakrai]

I'm no legal expert, but couldn't all of this be avoided with a proper disclaimer in the licence for the software?

And in theory you can prevent people from suing you if you put up a "Beware of Dog" sign or a "Private Property" sign. In reality you'll always find some clever lawyer or easily-swayed jury that rules the other way.

Are you going to trust the future of your business and life to a disclaimer?

Re:"former editor"?

[trick-knee]

> I thought she still heads groklaw...

as of Tue Mar 16 12:41:33 MST 2004 she hasn't made any announcement to the contrary...

She's not a former editor!

[m0nkyman]

Pamela Jones is still the main contributor and editor for Groklaw.

Check your facts.

Programmers' malpractice?

[PCM2]

What's next - Developers having to pick up 'code malpractice' insurance?

Sounds great to me. Every place I've ever done contract programming for has a clause in their contract that basically says, "If somebody sues us, they sue you." Some of them are nicer about it, and pretty much just require you to appear in court if there's ever a problem. Others want you named as a defendant. Saying "don't screw up" wouldn't make me feel as comforted as a good insurance policy -- if such a thing exists?

Re:She's not a former editor yet!

[h00pla]

I believe she's stated many times that when the SCO case blows over (and SCO blows up and McBride and Co. dry up and blow away) she wanted the site to evolve into a forum for open source and free software legal issues. As far as getting out, I don't think she's ever said that.