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MEET ENTERPRISE INSURANCE REQUIREMENTS FOR SOFTWARE SUPPLIERS
What Insurance Do Corporates Require From Software Companies?
When software vendors, SaaS providers or development agencies supply services to enterprise-level clients, strict insurance requirements form part of procurement and onboarding.
These requirements help corporates manage operational, financial, cybersecurity, data privacy and business continuity risks.
Typical Mandatory Insurance for Software Vendors Working with Corporates
Enterprise procurement teams commonly request the following insurance covers before approving software suppliers.
- Professional Indemnity (PI) — Often £2m–£10m+
Protects against financial losses caused by coding errors, implementation failures, integration issues, SaaS outages, system misconfiguration or consultancy mistakes. - Cyber Liability Insurance
Essential for data-heavy software providers. Often required for GDPR, ISO27001 and enterprise cyber controls. - Public Liability Insurance
Required when engineers, consultants or project managers attend client sites. - Employers’ Liability Insurance
Legally required if you employ staff or contractors.
- Management Liability
Protects directors from claims linked to decisions, regulatory issues or allegations of wrongful acts. - Intellectual Property (IP) Cover
Protects against claims of copyright, trademark or patent infringement — often requested for software vendors. - Technology Errors & Omissions (E&O)
Enhanced tech-specific liability protection for software implementation and platform failures. - Business Interruption
Certain enterprise clients require continuity planning and insurance-backed resilience for critical SaaS dependencies.
Why Corporates Demand Specific Insurance from Software Suppliers
Working with large enterprises means higher expectations around compliance, security and risk transfer.
Risk Reduction & Supplier Assurance
- Protects the corporate from financial loss caused by software failure.
- Helps satisfy internal risk, compliance and legal teams.
- Supports third-party cyber resilience requirements.
- Demonstrates supplier maturity during tender/bid evaluation.
Contractual & Regulatory Reasons
- GDPR and data protection obligations often require Cyber liability.
- PI limits must match the scale of operational impact.
- Complex SaaS and integrations increase professional risk.
- Enterprise procurement frameworks mandate minimum insurance levels.
FREQUENTLY ASKED QUESTIONS
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What insurance do corporates usually require from software suppliers?
Most enterprise clients require Professional Indemnity, Cyber Liability, Public Liability and Employers’ Liability as a minimum. Additional technology E&O, IP protection or Management Liability may also be required depending on the project.
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How much PI do corporates usually expect?
PI limits vary, but enterprise clients commonly expect £2m–£5m. Large SaaS or integration projects may require £10m+ depending on criticality and operational impact.
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Is Cyber Liability mandatory for software companies?
Yes. Corporates increasingly require Cyber Liability for all software suppliers — especially those handling customer or internal data.
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If we don’t meet insurance requirements, will we fail onboarding?
In most cases, yes. Enterprise clients rarely progress suppliers who cannot meet stated insurance requirements because of risk, regulatory and governance concerns.
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Can you review our current insurance to check if it meets corporate standards?
Yes — we assess your PI, Cyber, PL and related cover levels and provide guidance on what corporates typically require for onboarding and procurement approval.