Do Software Developers Really Need Public Liability Insurance?

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Do Software Developers Really Need Public Liability Insurance?

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Do Software Developers Really Need Public Liability Insurance?

Software developers don’t usually picture themselves as “high-risk” businesses. You’re not operating heavy machinery, you’re not working at height, and you’re not inviting members of the public into a shop or venue.
So it’s a fair question:
Do software developers really need Public Liability insurance?
For many developers, the honest answer is: sometimes yes — and sometimes it’s not essential. But what catches people out is this:
  • Clients often require it (even if your risk feels low)
  • Your work can still involve real-world contact (client offices, coworking spaces, events, hardware)
  • A single accident can mean a costly claim, even if you did nothing “wrong”
This guide breaks down what Public Liability insurance actually covers, when software developers typically need it, when they might not, and how it fits alongside other key covers like Professional Indemnity and Cyber insurance.
Note: This article is for general information and does not constitute advice. Insurance needs vary by contract, business structure, and the type of work you do.

What is Public Liability Insurance?

Public Liability insurance covers your legal liability if your business activities cause:
  • Injury to a third party (someone who isn’t your employee)
  • Damage to third-party property
It typically covers:
  • Compensation payments (damages)
  • Legal defence costs
  • Settlements (where appropriate)
In plain English: if someone claims you caused them harm or damaged their property, Public Liability can help cover the cost of defending the claim and paying compensation.

Who counts as “the public”?

It doesn’t just mean random members of the public in the street. It can include:
  • Clients
  • Visitors
  • Contractors working alongside you
  • People at events or meetups
  • Staff at a client site (if they’re not your employees)

Why developers assume they don’t need it (and why that’s not always true)

Many software developers work:
  • Remotely
  • From home
  • Without face-to-face client contact
  • Without physical products
That reduces risk — but it doesn’t remove it.
Even a “low risk” business can face Public Liability claims because the trigger is often a simple accident, such as:
  • A trip hazard from your laptop charger at a client office
  • A spilled coffee on a client’s equipment
  • Accidental damage to a server, monitor, or test device you’re handling
  • A client slipping in your home office during a meeting
If you ever work anywhere other than your own private space, or interact with people in a business setting, Public Liability becomes more relevant.

Common scenarios where a software developer could face a Public Liability claim

Here are realistic examples that apply to freelance developers, contractors, and small dev agencies.

1) Working at a client’s office

You go on-site for discovery sessions, sprint planning, or to support a deployment. During the visit, you:
  • Trip someone with a cable
  • Knock over a monitor
  • Spill a drink on a laptop
  • Damage a desk, chair, or other equipment
Even if it’s accidental, the client may expect you (or your business) to pay.

2) Working from a coworking space

Coworking spaces are shared environments. You may have:
  • Visitors meeting you there
  • Shared desks and equipment
  • High footfall
If someone is injured or property is damaged and you’re alleged to be responsible, Public Liability is the type of cover that may respond.

3) Hosting meetings at your home office

It’s less common, but some developers do meet clients at home. If a client:
  • Trips on stairs
  • Slips on a wet floor
  • Is injured in your workspace
…you could face a claim.

4) Attending conferences, meetups, and events

If you:
  • Sponsor an event
  • Speak at a conference
  • Run a workshop
  • Exhibit a product
…event organisers may ask for Public Liability as part of their risk management.

5) Handling or testing physical devices

Developers increasingly work with:
  • IoT devices
  • Medical devices (software components)
  • Payment terminals
  • POS systems
  • Hardware prototypes
  • Robotics or automation equipment
If you damage a device or cause a safety incident during testing or demonstration, Public Liability can become very relevant.

Public Liability vs Professional Indemnity: what’s the difference?

This is where many developers get caught out.

Public Liability (PL)

Covers injury or property damage caused by your business activities.
Examples:
  • A client trips over your equipment
  • You damage a client’s laptop during an on-site visit

Professional Indemnity (PI)

Covers financial loss suffered by a client due to your professional services, such as:
  • Negligence
  • Errors or omissions
  • Breach of professional duty
  • Misleading advice (depending on policy wording)
Examples:
  • A bug causes a client’s system outage and lost revenue
  • You deliver code that doesn’t meet requirements and the client claims costs to fix it
  • A missed security requirement leads to losses (sometimes PI, sometimes Cyber, depending on circumstances)
For many software developers, PI is often the more critical cover — but PL is still commonly requested and can be essential depending on how you work.

Do clients require Public Liability for software developers?

Often, yes.
Even if the actual risk is low, many organisations have standard supplier requirements. If you want to work with:
  • Larger businesses
  • Government bodies
  • NHS-linked organisations
  • Construction/engineering firms
  • Financial services firms
  • Facilities management companies
…you may find Public Liability is a “tick-box” requirement in onboarding.

Typical contract requirements you might see

  • Public Liability: £1m / £2m / £5m
  • Professional Indemnity: £250k / £500k / £1m+
  • Employers’ Liability: £10m (if you employ staff)
Even if you’re a one-person limited company working remotely, the client may still insist on PL.

When Public Liability might not be essential for a developer

There are scenarios where PL may be less important, such as:
  • You work 100% remotely
  • You never visit client premises
  • You never host clients at your premises
  • You don’t attend events, exhibitions, or meetups in a business capacity
  • You don’t handle client hardware or physical devices
  • Your contracts don’t require it
In those cases, your priority may be:
  • Professional Indemnity
  • Cyber insurance
  • Business equipment cover
  • Legal expenses
That said, many developers still choose a basic level of PL because it’s relatively affordable and helps meet client requirements.

How much Public Liability cover do software developers usually need?

There’s no single “right” answer, but common limits include:
  • £1 million: Often suitable for freelancers and small contracts
  • £2 million: Common requirement for SMEs and many commercial clients
  • £5 million: More common for larger organisations, public sector, or higher-risk environments
The right limit depends on:
  • Contract requirements
  • Where you work (on-site vs remote)
  • The type of client (small business vs enterprise)
  • Whether you attend events or handle equipment

What does Public Liability insurance usually not cover?

Public Liability is not a “catch-all” policy. Common exclusions/limitations can include:
  • Professional mistakes (that’s usually PI)
  • Cyber incidents (often require Cyber insurance)
  • Damage to your own equipment
  • Employee injuries (Employers’ Liability is required if you employ staff)
  • Deliberate acts
  • Contractual liability beyond negligence (depends on wording)
This is why developers often need a combination of covers, not just one.

What other insurance should software developers consider?

If you’re deciding what you actually need, here are the covers that most commonly matter for developers.

1) Professional Indemnity (often the key cover)

If you write code, advise clients, design systems, or manage deployments, PI is usually the core policy.
It’s especially relevant if you:
  • Work on business-critical systems
  • Provide architecture or security advice
  • Integrate payment systems
  • Deliver fixed-price projects
  • Work with regulated industries

2) Cyber insurance

If you handle:
  • Client data
  • Personal data (GDPR)
  • Credentials, tokens, or access to production systems
  • Cloud infrastructure
…Cyber insurance can help with breach response, forensic support, legal costs, and notification requirements (depending on policy).

3) Employers’ Liability (legal requirement if you employ staff)

In the UK, if you employ anyone (even part-time in many cases), Employers’ Liability is usually required by law, with a typical limit of £10 million.

4) Business equipment cover

Laptops, monitors, phones, and specialist kit can be expensive. Equipment cover can help if items are stolen or damaged (especially if you travel or work in shared spaces).

5) Legal expenses

Useful for contract disputes, tax investigations, and certain employment disputes (cover varies). Developers often run into disagreements around scope, deliverables, and timelines — legal expenses cover can be a practical add-on.

A simple way to decide: do you have “real-world exposure”?

Ask yourself these questions:
  1. Do you ever work at a client site?
  2. Do you meet clients in person (home office, coworking, rented rooms)?
  3. Do you attend events, conferences, or run workshops?
  4. Do you handle client hardware or physical devices?
  5. Does your contract require Public Liability?
If you answered “yes” to any of the above, Public Liability is worth serious consideration.

Frequently Asked Questions (FAQ)

1) I’m a remote developer — do I need Public Liability?

If you are genuinely 100% remote with no in-person meetings and no contract requirement, you may not need it. But many developers still buy it to satisfy client onboarding requirements and to cover unexpected situations.

2) Is Public Liability the same as Professional Indemnity?

No. Public Liability is for injury/property damage. Professional Indemnity is for financial loss caused by your professional services (errors, omissions, negligence).

3) I’m a contractor working through a limited company — does that change things?

It can. Many limited company contractors buy a package including PL and PI because clients often require it. Your contracts and working arrangements matter more than the company structure alone.

4) What if I damage a client’s laptop while working on-site?

That’s a classic example of a Public Liability-type claim (damage to third-party property), subject to policy terms and excess.

5) What if my code causes a client financial loss?

That’s more likely to fall under Professional Indemnity, not Public Liability.

6) Does Public Liability cover data breaches?

Usually not. That’s typically Cyber insurance (or sometimes PI depending on circumstances and wording).

7) Is Public Liability expensive for software developers?

It’s often relatively affordable compared to higher-risk trades. Pricing depends on turnover, claims history, the limit of indemnity, and the nature of work.

8) Do I need Employers’ Liability if I use subcontractors?

It depends on whether they’re considered “employees” under UK rules and the policy wording. This is a common grey area — it’s worth checking before assuming you’re exempt.

9) Can clients insist on £5m Public Liability even if I’m remote?

Yes. Some organisations have standard requirements regardless of risk profile. If you want the contract, you may need to match their insurance requirements.

10) What’s the best insurance setup for a freelance developer?

Often a combination of:
  • Professional Indemnity
  • Public Liability (if required or if you have real-world exposure)
  • Cyber (if you handle data/access)
  • Equipment cover (if you rely on your kit)

Final thoughts: do software developers really need Public Liability?

Many software developers won’t face Public Liability claims often — but the risk isn’t zero, and client requirements are a major driver.
A good rule of thumb is:
  • If you only work remotely and never meet clients, PL may be optional
  • If you ever go on-site, attend events, meet clients, or handle devices, PL becomes much more relevant
  • If your contract requires it, you’ll likely need it regardless of your view of the risk
If you’re unsure, it’s worth reviewing:
  • Your contracts
  • Your working setup (remote vs on-site)
  • The industries you serve
  • Whether you handle data, devices, or business-critical systems
Because in the real world, insurance is often less about what you think will happen — and more about what would hurt most if it did.

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