Insurance for Software Developers

Tailored insurance for software developers. Protect your code, your creativity, and your career against the unexpected.

Insurance for Software Developers

Tailored insurance for software developers. Protect your code, your creativity, and your career against the unexpected.

What insurance does a software developer need?

Insurance for Software developers consists of Professional Indemnity, Public Liability and Cyber Insurance. These types of insurances offer a safety net, ensuring that if your software doesn’t work as expected and causes a problem for a user, you’re protected from the financial fallout of legal claims.

When you create software products that are available for purchase by the general public, having the right insurance is essential to safeguard against any claims related to product flaws that might lead to harm or injury. It’s important to remember that even digital products can have glitches or be used in ways you didn’t intend, which could result in significant legal issues.

Investing in comprehensive insurance coverage provides peace of mind, allowing you to focus on innovation and development, knowing that you’re prepared for the unexpected. Ensuring your product is backed by reliable insurance not only protects your business but also builds trust with your customers, demonstrating your commitment to their safety and satisfaction.

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Public Liability Insurance for a Software Developer

Public Liability Insurance provides protection for software developers, protecting them from third-party claims related to bodily injury or property damage stemming from their business operations. Although the field of software development is low risk for physical accidents, there could be circumstances where someone could get injured.

Products Liability for a Software Developer

Standard product liability claims would be if a tangible product was manufactured, or distrbuted and then that prouct was to cause physical injury to a customer.

For example, if you prepared and sold food, there is a food poisening risk. If you manufacturer electronics and there was a malfunction with the battery where it over heats or explodes and causes a house fire, there could be claims against you for the repairs to the house due to the fire.

Products Liability for a software developer could protect businesses whether they create, sell, or distribute these products, this insurance covers risks like financial losses from software that doesn’t work as expected, causes injury to someone, or doesn’t meet the agreed requirements.

What does Professional Indemnity cover?

Professional indemnity insurance is crucial for IT businesses, offering protection against claims related to negligence or not meeting professional standards. This insurance is vital for companies in the IT sector, handling complex software, systems, and data. It safeguards against potential financial losses clients might face due to errors or oversights, ensuring IT firms can operate with confidence.

Making a mistake that was not intentional;

A client misinterpreting the advice you’ve given;

Copyright claims.

What is typically not covered?

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Personal Injury claims that result from the advice you’ve given

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Intentional Acts including defamation, slander, libel

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Claims made if you don’t have an active policy in place;

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Prior Known Circumstances

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Industry specific exclusions that the insurer have applied

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Undisclosed Activities

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Work done before your retroactive date

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Activities done outside of your insured jurisdiction

Is Insurance Compulsary for Software Companies?

Contractual Requirements

Your clients, especially those from large companies or government sectors, often require their software providers to carry specific insurances like professional indemnity or errors and omissions insurance.

Legislative Requirements

In Australia, it’s mandatory for all employers, including those in software development, to insure for workers’ compensation insurance. This  applies to every industry, ensuring employees are covered for any work-related injuries or illnesses.

Optional Insurances but highly recommended

  • Professional Indemnity protects against financial losses from mistakes or negligence.
  • Public Liability Insurance is essential for physical or property damage claims, often required by leases or contracts.
  • Cyber Insurance is crucial for protecting against data breaches and cyberattacks, becoming increasingly important in today’s digital world.

Does a Software Developer need Cyber Insurance?

Cyber insurance is highly recommended for software developers, offering protection where digital threats are on the rise. Software developers face a higher risk of encountering issues like data breaches, cyber attacks, and hacking.

What is typically covered?


Cyber Theft



Denial of Service


Replacement of Hardware

Social Engineering

How Morgan Insurance Brokers can help you

Choosing an insurance broker for your software company is a smart move, giving you unmatched advantages in the tech world’s complex landscape.

Morgan Insurance Brokers guide you to the perfect insurance cover that shields you from tech-specific dangers such as data leaks and copyright issues.

We are your partner in securing tailored insurance solutions and expert support, helping your software company navigate the complexities of risk and protection.

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