Great post tachyon! It appears you have done a good amount of research.
It is true that surety underwriters are very conservative in nature. It is also true that most do not have the slightest idea about technology. Which is precisely why most bonding companies do not want to touch it. They are content with the lines of business they write and are hesitant to write contracts they are not familiar with.
The other problem for for software development guarantees is that they are can not be underwritten using traditional methods. The bonding companies do not know how to go about assessing the risk of a programmer. Keeping in mind you can not look at their code, how would you differentiate one programmer from another? Being a programmer yourself, would you feel comfortable guaranteeing (using your money to back it) another programmer's work if they were a complete stranger?
I must say I am not suprised that most bonding companies are not willing to write these types of risks. Per the article you read, they are very stuck in their ways.
PS - I myself, am yet another self proclaimed webmaster/programmer. To be perfectly honest, I would find it difficult to guarantee software projects if I were in their shoes. |