Why do app developers need insurance?
Client claims your app isn’t fit for purpose
Following months of hard work, you’re ready to present a test version of your app to the client who’s commissioned it.
But after testing the app, they complain that it fails to meet the original brief. They say it contains coding errors and is built on the wrong architecture. As you warn of delays and cost overruns, the client threatens legal action. Professional indemnity insurance could deal with compensation expenses if it’s built into your policy.
Hackers access important client data
Your client provides valuable data to help you test a new app as accurately as possible. But one of your employees falls victim to a phishing email, causing a major breach of your security systems.
With sensitive company data now in the hands of hackers, your relationship with the client is on the line. Insurance for mobile app developers could support your data recovery efforts if it contains cyber cover.
One of your coders develops severe RSI
You’ve always viewed app development as a mental rather than physical task. But when one of your coders complains of a repetitive strain injury (RSI), you’re forced to think again.
Long hours at their computer, combined with an uncomfortable desk set-up, have left them with significant muscle pain. They pin the blame on you for a lack of support and threaten legal action. Employers’ liability cover may assist with compensation pay-outs.
What insurance is available for app developers?
Professional indemnity insurance
App developers offer a professional service to their clients. Whether through general advice or hands-on technical work. Yet even the best-prepared projects may suffer from missed deadlines, software bugs or other hurdles.
Professional indemnity insurance could help in such cases. It can defend you against claims of negligence and misrepresentation. It might also assist you with an accidental breach of copyright, defamation and more.
Cyber and data insurance
From weather and fitness apps to gaming tools, social media and beyond, your work may take you to the cutting edge of digital innovation. Yet it might come with a sting in the tail too.
Malware, data breaches and hacking attacks all have the potential to tarnish your hard-won reputation. Or even paralyse your app development business. Cyber insurance can step in to offer financial assistance should the worst happen.
Employers’ liability insurance
Health and safety isn’t just a priority for those undertaking intensive physical work. Accidents like slips and trips can occur at any business premises. And the same goes for work-related illnesses.
Employers’ liability insurance is designed to cover legal and compensation costs, even if you aren’t at fault. What’s more, this type of cover is often required by law (external link) if you have staff on your books.
Insurance for mobile app developers can include other covers, too. Office contents, personal accident and legal protection insurance are other options.
Get a quote for business insurance tailored to your app development business.
Build my coverInsurance for app developers: FAQs
What insurance do you need for an app?
You don’t legally require any business insurance as a mobile app developer unless you hire employees. In that case, you’ll generally need employers’ liability insurance by law. A client may also ask to see proof of professional indemnity cover before entering a contract with you. This could safeguard both parties against advice and services that prove negligent.
What are the risks of app development?
The potential risks for app developers include:
- Technical errors. Incorrect coding, using the wrong architectural framework and software bugs.
- Security and data breaches. Cyber attackers gaining access to important systems.
- Disgruntled clients. Key people proving difficult to collaborate with or even refusing to pay.
- Low consumer interest. The application lacking a unique selling point or featuring an unwieldy interface.
Do I need professional indemnity insurance as a freelance developer?
A freelance app developer has no legal obligation to take out professional indemnity insurance. But you may find it helpful if a client raises the prospect of legal action over the services you’ve provided. Some firms might also request it before they agree to work with you on a project.
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