Why do software developers need insurance?
Testing software and diagnosing problems is part of your offering as a software developer, but sometimes even your fixes might create problems elsewhere. You might be tasked with programming system software to drive efficiency for a client – if your code causes a malfunction, the operational consequences could be significant. Including professional indemnity insurance in your policy can provide reassurance for software developers. If the client seeks compensation, legal fees and demands could be covered.
A hacking event
Try as you might to build hack-proof software, vulnerabilities can exist – and all the automated analysis in the world may not prevent an SQL injection attack. Digital work can come with cyber security risks – and when your hardware and accounts are central to what you deliver, simple problems can threaten the vitality of your business. Including cyber and data insurance within your policy allows you to take on software development work with confidence. If you’re hacked, we can help to provide financial and practical support.
A client injury
Building out the software for a client’s digital app launch feels like an exciting project – until your client becomes injured at a pre-launch meeting. It’s a simple slip in the stairwell that leads to a broken bone. In software development, not all risks are related to your technical work, so including public liability cover in your insurance policy may offer comfort. If your client decides to recover compensation, this type of insurance can help with defence costs and pay-outs.
What insurance is available for software developers?
These are just some of the types of business insurance we offer for software developers. We can provide other cover types and build them into a policy tailored to the requirements of your business.Get your quote
Insurance for software developers: FAQs
What sort of insurance is a software development company with staff required to have by law?
Under UK law (external link), software development companies with staff are usually required to have employers’ liability insurance. If your business needs it, failure to purchase this cover can even result in fines.
Such staff might be full-time, permanent developers, IT support employees or casual staff members such as work experience interns. Either way, the rule might apply.
Employers’ liability insurance backs your business up against risks related to your responsibility to staff. If they’re injured or become ill because of their work, this product can look after your firm’s legal expenses and help to pay out compensation on your behalf.
Do software developers need professional indemnity insurance?
For many software developers, professional indemnity insurance could offer welcome protection – though the question of whether you need it is personal to each business.
Adding this type of insurance to your policy may be especially beneficial if you give advice or carry out software consultancy work.
Complaints of failure to deliver can arise without fault by you. Project creep, for instance, can lead you to miss key software targets – and your client might complain, even if they moved the benchmarks. If you’d prefer not to risk paying for legal fees and compensation yourself, then this type of insurance can help.
Is past work covered under my software development insurance?
Hiscox professional indemnity insurance can cover software developers for past work as long as you have held continuous PI cover, either with Hiscox or another insurer. This can be helpful if you face a claim from a former client – for instance, if they spot an error in code you’d written the previous year and attempt to claim compensation for alleged losses.
To understand how far back cover can go, it may be important to understand your retroactive date.
Related articles and guides
How insurance can help developers
Read our developer case study to find out how our professional indemnity insurance helped Chris, a freelance software developer, when he was accused of causing delays and defects.
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