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INSURANCE ALIGNED TO GOVERNMENT & PUBLIC SECTOR IT CONTRACTS
Why Government Software Contracts Need Specialist Insurance
Delivering software into central government, local authorities, NHS and wider public sector environments brings heightened expectations around uptime, data protection, resilience and governance. Frameworks, tenders and contracts often specify minimum insurance limits and particular types of cover – and they expect suppliers to be able to evidence that cover clearly.
Insure24 helps software vendors, SaaS providers, implementation partners and independent contractors put in place insurance programmes that are suitable for government projects – combining Technology E&O, Professional Indemnity, Cyber, Public Liability, Employers’ Liability and, where relevant, Management Liability in a way that reflects your contractual commitments and risk profile.
What Insurance for Government Software Contracts Can Cover
A joined-up approach to technology, professional and cyber liability for public sector work.
- Technology Errors & Omissions – claims that your system or platform failed to perform as specified.
- Professional Indemnity – allegations of negligent design, configuration, integration or advice.
- Service failure – outages, downtime or performance issues impacting public services (subject to wording).
- Implementation and migration – failed or delayed go-lives causing operational disruption.
- Contract disputes and financial loss claims arising from missed KPIs or milestones.
- Certain data, confidentiality and IP claims linked to your software and services.
- Cyber liability – privacy breaches, ransomware incidents and compromised citizen data.
- Public Liability – injury or property damage when working on-site in public sector premises.
- Employers’ Liability – your staff and labour-only contractors delivering projects.
- Management Liability / D&O – for directors where required by investors or boards.
- Legal defence costs and associated expenses, subject to policy terms.
- Support for contract and tender-related insurance queries and evidence requests.
Typical Risks in Government Software & Digital Projects
Public sector software projects are high profile, multi-stakeholder and often politically sensitive.
Delivery & Implementation Risk
- Delays in go-live affecting citizen services or internal operations.
- Scope changes and unclear responsibilities between suppliers and in-house teams.
- Complex integration with legacy systems and other vendors.
- Data migration issues leading to incomplete or inconsistent records.
- Cost overruns and disputes over who bears responsibility.
Operational & Political Risk
- Outages or performance issues disrupting vital services to citizens.
- Public and media scrutiny amplifying the visibility of incidents.
- Changes in policy direction or leadership mid-project.
- Strong procurement and legal teams pursuing recovery of losses.
- Regulatory, audit and oversight bodies examining failures in detail.
Government Contracts, Tenders & Framework Requirements
Insurance is a standard part of supplier assessment, due diligence and ongoing contract management.
Common Insurance Requirements
- Minimum Professional Indemnity and Technology E&O limits.
- Public & Employers’ Liability at specified levels.
- Cyber liability cover where data or citizen information is involved.
- Evidence of cover and confirmation of key policy exclusions.
- Notification obligations if cover lapses or changes significantly.
How Insure24 Supports Bids & Renewals
- Reviewing tender and framework documents for insurance implications.
- Structuring limits and cover to meet or exceed stated requirements.
- Providing certificates and letters of cover for bid submissions.
- Advising on negotiations around liability caps and indemnities.
- Updating documentation when contracts renew or expand.
Data, Security & Compliance for Government Software
Handling public sector data often attracts additional security, privacy and assurance obligations.
Risk Factors Insurers Consider
- Types of data processed (citizen records, health, finance, justice, etc.).
- Security certifications, policies and technical controls in place.
- Use of cloud services, hosting arrangements and data residency.
- Access control, audit trails and incident response capability.
- Previous security incidents, near misses or regulatory findings.
How Insurance Fits In
- Cyber cover for data breach costs, notifications and business interruption.
- E&O/PI cover when security or resilience issues are alleged to be negligent.
- Support for regulatory investigations and inquiries (policy dependent).
- Cover for third-party claims arising from security or privacy failures.
- Coordination between technical, legal and insurance teams during incidents.
Who Is Government Software Contract Insurance For?
Cover tailored to the different ways you might be delivering into the public sector.
Software Vendors & SaaS Providers
- Core platforms used by government departments or agencies.
- Line-of-business SaaS solutions for public services and back-office functions.
- Citizen-facing portals, booking systems and digital engagement tools.
- Specialist solutions for education, housing, health, justice or transport.
- Products listed on public sector procurement catalogues and frameworks.
Implementation Partners & Contractors
- Systems integrators delivering complex transformation programmes.
- Independent contractors leading delivery, architecture or project roles.
- Managed service providers operating and supporting live environments.
- Digital agencies working on citizen-facing digital services.
- Data and analytics specialists handling sensitive public sector datasets.
“Winning our first central government contract was a big step. Insure24 helped us reshape our insurance, match the tender requirements and give procurement the assurances they needed.”
Founder, Public Sector Software VendorPROTECT YOUR PROJECTS, YOUR CONTRACTS & YOUR REPUTATION
- The systems and services you provide to government and public bodies.
- Your contractual obligations, SLAs, KPIs and liability caps.
- Your financial position if incidents escalate into large claims.
- Your standing with procurement teams, delivery partners and auditors.
- Your ability to compete for larger and more complex public sector work.
FREQUENTLY ASKED QUESTIONS
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Why do government software contracts specify insurance levels?
Public bodies need assurance that if something goes wrong – for example, a failed implementation or
major outage – the supplier has the financial capacity to respond. Specified PI, E&O, Public Liability
and Cyber limits are a way of managing that risk across a large supplier base.
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What types of insurance are usually required for government software work?
Requirements vary by contract, but commonly include Professional Indemnity (often in a technology
E&O form), Public Liability, Employers’ Liability and increasingly Cyber. Larger projects may also
look for evidence of Management Liability or specific extensions.
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We already have PI – is that enough for government contracts?
It depends on your work and the contract wording. Many government buyers expect PI to specifically
reflect technology and software risk, and they may also want Cyber, PL and EL at particular levels.
We can review your existing arrangements and highlight any gaps relative to typical expectations.
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Do we need different cover for central government vs local authorities or NHS?
Not necessarily different types of cover, but the limits and emphasis may change. For example, health
or justice-related systems may attract higher expectations than small internal tools for a local
authority. We look at your actual contracts and risk profile rather than using a one-size-fits-all approach.
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Will our insurance cover penalties, fines or liquidated damages?
Direct fines and contractual penalties are often restricted or excluded, but associated claims for
negligence or financial loss may still be covered, depending on policy wording. We explain how your
policies respond so you can negotiate contracts with a clear picture of what is and is not insurable.
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How much PI/E&O cover do we need for government projects?
The right level depends on the size and nature of your contracts, the potential impact of failure and
the limits requested in tenders. We consider realistic worst-case scenarios, your liability caps and
your growth plans before recommending options.
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Can independent contractors working on government projects be covered too?
Yes. We arrange contractor-focused PI/E&O, PL, EL and Cyber for individuals and small limited
companies working on government software and digital projects, often outside IR35. This can help you
meet agency or client onboarding requirements.
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How do we evidence our cover during a tender or framework application?
Insure24 can provide certificates of insurance and short summaries confirming key limits and policy
types. Where specific wording is requested, we work with insurers to agree appropriate confirmation,
subject to their terms.
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What should we do if a government customer raises a serious complaint or potential claim?
Notify Insure24 as soon as you become aware of a serious issue, formal grievance or threat of legal
action. Early notification is important for E&O/PI and Cyber policies. We help you gather relevant
documentation, notify insurers properly and respond in a controlled and professional way.
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Can our insurance evolve as we win larger or more complex public sector projects?
Yes. As your pipeline grows and you win larger contracts, we can review and increase limits, add
extensions and refine your programme. Many software vendors schedule regular reviews as they move from
smaller local authority work to larger central government or multi-agency projects.