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Technology risks placed with leading UK insurers
CUSTOM SOFTWARE DEVELOPMENT INSURANCE FOR UK TECH BUSINESSES
Protect Your Code, Contracts & Client Relationships
Custom software projects carry real delivery risk – scope creep, bugs in production, integrations that fail, data issues, performance problems and tight SLAs. If something goes wrong, clients usually look to the software supplier first.
Insure24 arranges specialist software company insurance that protects you against claims arising from coding errors, implementation failures, downtime, data issues and contract disputes – with cover tailored to how you actually build and deliver software.
Core Insurance Covers for Custom Software Developers
Designed for product, project and service-based software delivery models.
Professional Indemnity & Tech E&O
- Professional Indemnity (PI) – protects against errors in design, coding, configuration, testing or implementation.
- Technology Errors & Omissions – cover for failure of software to perform as intended or meet agreed specifications.
- Financial Loss extensions – for claims where there is no physical damage or injury, just pure financial loss.
- Defence costs – legal support and representation in the event of a dispute or claim.
- Contractual liability – aligned, where possible, with typical software and SaaS contracts.
- Optional intellectual property cover (where available) around code and software use.
Liability, Cyber & Business Protection
- Public & Products Liability – injury or property damage caused by your activities or installed hardware.
- Cyber & Data Insurance – data breaches, ransomware, system attacks and privacy incidents.
- Employers’ Liability – compulsory cover if you employ staff or contractors.
- Directors’ & Officers’ (D&O) – protection for directors of software companies.
- Legal Expenses – contract disputes, employment issues and tax enquiries.
- Contents & Equipment – laptops, servers, development hardware and office kit.
Who Is Custom Software Development Insurance For?
For UK-based software businesses building or implementing bespoke solutions for clients.
Types of Software Companies Covered
- Custom software consultancies and development agencies.
- Bespoke application developers – web, mobile, desktop or embedded systems.
- SaaS providers who customise or configure platforms for individual clients.
- Systems integrators and implementation partners.
- Developers building line-of-business tools or internal systems for clients.
- Boutique development studios and technical product teams.
Typical Engagement Models
- Fixed-price projects with defined scope, milestones and acceptance criteria.
- Time-and-materials development and ongoing enhancement work.
- Agile delivery with sprints, product backlogs and evolving requirements.
- Retainer-based support, maintenance and DevOps services.
- White-label or OEM software delivered via partners.
- Hybrid models combining consulting, build, integration and support.
Key Risks for Custom Software Developers
Why robust PI, Tech E&O and cyber cover are essential for modern software companies.
Technical & Delivery Risks
- Bugs, defects or design flaws that cause system outages or data issues.
- Performance problems or scalability issues under real-world load.
- Integrations failing with third-party APIs, legacy systems or cloud services.
- Missed deadlines or cost overruns leading to client disputes.
- Failure to meet contractual SLAs, KPIs or acceptance criteria.
- Misunderstandings around change requests, scope and responsibilities.
Data, Contract & Commercial Risks
- Claims that software errors caused financial loss or lost revenue.
- Exposure under limitation of liability clauses and indemnities.
- Handling personal data and being caught up in privacy or GDPR issues.
- Cyber incidents involving your code, infrastructure or admin access.
- IP ownership and licensing disputes over custom code.
- Reliance on subcontractors, freelancers or offshore teams.
How Custom Software Development Insurance Is Arranged
Practical cover built around your tech stack, clients and contracts.
1. Understand Your Software Business & Contracts
- We discuss what you build – web apps, mobile, SaaS, integrations, APIs, platforms.
- We look at your key sectors – finance, health, ecommerce, public sector, etc.
- We review contract terms, SLAs, caps on liability and indemnity clauses where possible.
- We consider your delivery model – in-house team, contractors, nearshore/offshore.
- We assess any existing PI, cyber or business policies to avoid gaps or duplication.
2. Build a Cover Package Around Your Risk Profile
- PI and Tech E&O limits matched to client expectations and deal size.
- Cyber cover aligned with your infrastructure and data exposures.
- PL and Employers’ Liability for office, home-working and on-site activity.
- D&O protection for founders, directors and senior decision makers.
- Equipment and contents cover for the kit your team depends on.
Our clients expect us to carry solid PI and cyber cover because their business runs on our software. Having the right insurance in place lets us sign bigger contracts with more confidence.
Managing Director, UK Software Development Agency
PROTECT YOUR SOFTWARE PROJECTS
& YOUR TECH BUSINESS
WHY SOFTWARE COMPANIES CHOOSE INSURE24
- Focus on technology-led businesses and software development risks.
- Understanding of agile delivery, SLAs, cloud and integration dependencies.
- Ability to meet tender and enterprise-client insurance requirements.
- Joined-up advice across PI, Tech E&O, cyber, PL and D&O.
- Support as your business scales from startup to established software house.
FREQUENTLY ASKED QUESTIONS
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Why do custom software developers need Professional Indemnity insurance?
Clients rely on your software to run critical processes. If an error in your code or design causes
financial loss, they may pursue a claim. Professional Indemnity and Tech E&O are designed to protect
your business against such allegations.
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What PI limit should a software development company have?
Typical limits range from £250,000 up to £5m or more, depending on contract size, client profile and
potential impact of failure. Many enterprise contracts specify minimum PI limits; we match cover to those requirements.
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Is Tech E&O different from standard Professional Indemnity?
Tech E&O is designed specifically for technology services and software. It usually provides broader
coverage for failure of software to perform as intended, rather than just traditional professional advice errors.
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Does this cover open-source components used in our software?
Many custom software projects rely on open-source libraries and frameworks. As long as your use of them
fits within licensing terms and your declared activities, PI/Tech E&O can still respond if a claim
arises from your overall solution.
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Does this insurance cover cyber attacks and data breaches?
Cyber risks are normally covered under a separate cyber policy, which can be combined with your software
PI/Tech E&O. It can include incident response, forensics, notification costs and business interruption cover.
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Are subcontractors and freelancers working for us covered?
Your policy can typically be structured to cover the work of subcontractors acting on behalf of your
company, but you remain responsible for their work. We’ll discuss how you use contractors and reflect that correctly.
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Will this help us win larger or enterprise software contracts?
Many tenders and enterprise clients require proof of PI, PL and cyber cover with specific limits. Having
suitable insurance in place makes procurement smoother and can support your credibility as a supplier.
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Does this insurance help with investor or board requirements?
Investors and boards often expect robust risk management, including PI, cyber and D&O.
Having the right policies in place can support due diligence and governance discussions.
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How much does Custom Software Development Insurance cost?
Pricing depends on turnover, project size, PI limits, client sectors, claims history and your security
posture. Startups and small agencies are often pleasantly surprised by how affordable tailored cover can be.
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How do we get a quote for our software company?
Share a brief overview of your software products, services, clients and contracts with Insure24.
We’ll review any existing cover and provide tailored PI, Tech E&O, cyber and liability quotes for your software business.