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Working with leading UK insurers for software & digital businesses
REDUCE COSTS WITHOUT LOSING CRITICAL SOFTWARE COMPANY COVER
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SMARTER COVER LIMITS
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RISK MANAGEMENT
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COMBINED POLICIES
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CYBER HYGIENE
Why Software Companies Are Seeing Higher Insurance Costs
Software businesses and SaaS providers sit at the centre of clients’ operations – handling business-critical
applications, data and uptime. Insurers have seen an increase in large cyber, professional indemnity and
technology E&O claims, which has pushed premiums up across the sector.
The good news: there are still many ways to control and reduce costs if you plan ahead, present your risk
correctly and structure your policies in a way that reflects how your software company actually operates.
Key Ways to Reduce Insurance Costs for a Software Company
Cost-saving strategies that do not simply involve stripping out important cover.
- Review Limits & Scope – ensure PI, cyber and public liability limits match realistic contract requirements.
- Increase Excesses Sensibly – accepting higher excesses on manageable claim sizes can reduce premium.
- Combine Policies – consider packages that combine PI, cyber, public liability and office cover where suitable.
- Clarify Your Activities – present insurers with accurate detail about what you do (and don’t) do; avoid being rated as higher risk than necessary.
- Demonstrate Security Controls – MFA, backups, patching, vendor management and incident response planning can positively influence cyber pricing.
- Tidy Contract & SLA Language – avoid wide, uncapped contractual liabilities that make insurers nervous.
- Manage Claims Proactively – quick reporting and evidence of lessons learned can help avoid steep increases at renewal.
- Use a Specialist Broker – work with someone who regularly places software and SaaS risks, not generic SME policies.
Common Areas Where Software Companies Overpay for Insurance
- Cover based on outdated revenue, headcount or geography figures.
- Duplicate extensions across separate PI and cyber policies.
- High limits driven by “maximum” client requests rather than realistic deal sizes.
- Generic cyber questionnaires that do not reflect your actual security controls.
- Policies written for “IT services” or “consulting” rather than a modern SaaS model.
- Continuing with the same insurer after a major rating change without re-marketing.
- Paying annually when monthly premium finance could ease cash flow (or vice versa).
- Accepting off-the-shelf endorsements that don’t fit your risk profile or contracts.
How Insure24 Helps Software Companies Reduce Insurance Costs
- Focused on software, SaaS and technology businesses – not generic commercial risks.
- We benchmark your current premiums against similar tech clients.
- We help you present your risk to underwriters in a clear, positive way.
- We identify overlaps between PI, cyber and management liability covers.
- We can propose alternative structures – layered limits, higher excess options and blended policies.
- We assist with risk questionnaires, security summaries and governance information.
- We review key client contracts to understand which limits are genuinely required.
Practical Steps You Can Take Before Renewal
- Map Your Policies – list all existing covers, limits, excesses and renewal dates.
- Update Your Figures – revenue split by product, sector and geography; headcount; claims history.
- Document Security – MFA use, incident response plans, backups, vendor checks and deployment practices.
- Prioritise Contracts – identify your largest or most demanding customers by insurance requirement.
- Check for Legacy Activities – remove discontinued services that are pushing up your risk rating.
- Agree a Risk Narrative – a concise description of what you do and where you add value.
- Engage Early – speak to us well before renewal so there is time to approach alternative markets.
Which Software & Digital Businesses Can Benefit from a Cost Review?
Any tech-driven organisation that feels insurance costs are climbing faster than the business is growing.
Software & SaaS Businesses
- SaaS Product Companies
- B2B and B2C App Developers
- Vertical Market Software Providers
- Fintech, Healthtech & Regtech Firms
- Developer Tools & Platform Providers
- Cloud-native and API-first Startups
Digital & Technology Services
- Digital Agencies & Consultancies
- Managed Service & IT Support Providers
- Cyber & Data-focused Consultancies
- Gaming, VR & Immersive Tech Studios
- Analytics, AI & Data Insight Providers
- Marketplace & Platform Businesses
Our premiums had crept up over several renewals as we added more contracts and products. Insure24 helped us restructure our cover, clarify our risk profile and reduce costs without losing the limits our enterprise clients expect.
Sarah J., SaaS COOFREQUENTLY ASKED QUESTIONS
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Can we reduce insurance costs without cutting cover completely?
In many cases, yes. Adjusting limits, excesses and structure – and making sure you are not
over-insured in some areas or under-rated in others – can create savings without exposing your
business to unacceptable risk.
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Does having claims always mean our premiums will increase?
Claims history is important, but how you respond is equally critical. Demonstrating improved
controls, processes and governance after a claim can help reassure insurers and manage the
impact on premium at renewal.
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Will reducing our limits make it harder to win enterprise or public sector contracts?
It depends on your clients and target market. Some contracts genuinely need higher limits,
while others have room for negotiation. We can help you understand what your key customers
typically expect so you don’t over- or under-insure.
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Is it worth shopping around every year, or better to stay with one insurer?
Continuity can sometimes be beneficial, but relying on a single insurer or quote each year
may mean you miss better terms elsewhere. A broker who knows the software market can balance
continuity with competitive tension between insurers.
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Can we pay monthly to help cash flow without increasing the overall cost too much?
Monthly premium finance is usually available (subject to status). There is typically a finance
charge, but for many software companies the cash flow benefit over the year outweighs the additional cost.