My Account
We compare quotes from leading technology insurers
INSURANCE BUILT AROUND YOUR SOFTWARE WARRANTIES & SLAS
Why Warranty & SLA Insurance Matters for Software Providers
Modern software and SaaS contracts are full of warranties, uptime commitments, performance targets and service level agreements. When incidents happen, customers may push for compensation well beyond service credits or attempt to challenge your limitation of liability. At the same time, enterprise customers and procurement teams increasingly ask for proof that your warranties and SLAs are backed by robust Technology E&O, Professional Indemnity and Cyber insurance.
Insure24 helps software vendors, SaaS providers, development houses and tech contractors align their insurance with the promises they make in contracts – so your E&O, PI and Cyber programmes are designed with your warranties, SLAs and commercial realities in mind.
What Insurance for Software Warranties & SLAs Can Cover
We build programmes that recognise how your contractual commitments, warranties and SLAs intersect with real claims and disputes.
- Technology Errors & Omissions – claims that your software did not perform as warranted.
- Professional Indemnity – negligent advice, design, configuration or implementation.
- Claims alleging breach of express warranties in your contracts and MSAs (subject to wording).
- Financial loss linked to outages, downtime or missed availability targets.
- Disputes where customers seek damages beyond agreed service credits.
- Legal defence costs in disputes over the interpretation of SLA clauses.
- Claims arising from delayed fixes and extended incident resolution times.
- Problems where integration, configuration or user error overlaps with your responsibilities.
- Liability disputes when multiple vendors and cloud providers are involved.
- Certain IP, confidentiality and data handling claims linked to warranty obligations.
- Add-on Cyber cover for data breaches and security incidents impacting SLAs.
- The work of employees, contractors and approved partners named in your policy.
How Warranties & SLAs Create Risk for Software Businesses
Contract wording can dramatically change your exposure when something goes wrong.
Common Warranty Commitments
- Assurances that software is “fit for purpose” or “error-free in all material respects”.
- Warranties that the platform will meet specified performance metrics.
- Promises that integrations will align with published APIs and documentation.
- Commitments around data accuracy, reporting and regulatory compliance.
- Undertakings that defects will be remedied within defined timeframes.
Service Level Agreements (SLAs)
- Uptime and availability targets (e.g. 99.5%, 99.9% or higher).
- Response and resolution times for different incident severities.
- Time-to-acknowledge, workarounds and permanent fix commitments.
- Service credit schemes and escalation procedures.
- Reporting, monitoring and incident communication obligations.
When Customers Push Beyond Service Credits
Service credits are often intended as the exclusive remedy – but not every customer reads the contract that way.
Escalation from Incident to Claim
- A major outage leads to lost revenue for enterprise customers.
- Service credits do not come close to covering perceived losses.
- Procurement or legal teams become involved after repeated incidents.
- Lawyers argue that certain contract limitations are unenforceable.
- Customers look to your insurance to fund wider compensation demands.
How Insurance Supports You
- Defence costs for disputes over interpretation of SLA and warranty wording.
- Contribution to settlements where covered negligence is alleged.
- Support gathering technical evidence and expert opinion.
- Guidance on how to communicate with customers during a dispute.
- Help aligning your contract templates with the cover you have in place.
Aligning Insurance with Your Software Contracts
The goal is simple: your warranties and SLAs should be ambitious but still insurable.
Key Questions to Consider
- Do your warranty and SLA promises match your engineering reality?
- Are limitation of liability clauses aligned with your E&O/PI limits?
- Do contracts clearly set out what happens when targets are missed?
- Do you know which indemnities are covered by insurance and which are not?
- Are resellers, partners and subcontractors properly reflected in your policy?
How Insure24 Helps
- We translate your contract and SLA language into risk terms insurers understand.
- We identify clauses that can create uninsurable or disproportionate exposure.
- We work with technology-focused insurers who understand SaaS and platforms.
- We help you balance commercial demands with a realistic insurance backstop.
- We review your programme as your product, pricing and customer base evolve.
Who Is This Insurance For?
Any software business or contractor whose contracts contain warranties or SLAs that customers rely on.
SaaS & Platform Providers
- Multi-tenant SaaS platforms with published uptime and response targets.
- B2B platforms powering sales, operations, payments or customer experience.
- Subscription and usage-based models with tight contractual commitments.
- Vendors integrating with critical third-party systems and APIs.
- Fast-growing scale-ups selling into enterprise or regulated sectors.
Software Vendors, Dev Houses & Contractors
- On-prem or hybrid software vendors supplying bespoke or configured solutions.
- Development houses signing fixed-price or outcome-based contracts.
- Independent contractors agreeing uptime or response commitments in SoWs.
- Consultancies offering managed services wrapped around software products.
- Resellers and partners passing through or extending warranty obligations.
“Our enterprise customers demand aggressive SLAs and warranties. Working with Insure24 gave us confidence that our contracts, liability caps and insurance were all pulling in the same direction.”
Chief Operating Officer, SaaS PlatformPROTECT THE PROMISES YOU MAKE IN YOUR CONTRACTS
- The warranties and SLA commitments you give to customers.
- Your ability to defend your position when they are challenged.
- Your balance sheet when incidents escalate into claims.
- Your reputation as a trustworthy, enterprise-ready partner.
- Your capacity to negotiate fair contracts supported by robust insurance.
FREQUENTLY ASKED QUESTIONS
+ -
What is “Insurance for Software Warranty & SLAs” in practice?
It typically means a combination of Technology Errors & Omissions, Professional Indemnity and Cyber
insurance structured around the specific warranty, uptime and service level promises you make to
customers. The policies respond when financial loss is alleged following defects, outages or failures
associated with those commitments.
+ -
Does insurance pay service credits under our SLAs?
Service credits are usually seen as a contractual price adjustment or commercial term, not an insured
loss. Insurance is more focused on defence costs and damages where there is an allegation of negligence,
breach of contract or financial loss beyond the agreed service credits. The detail depends on policy
wording and local law.
+ -
Will my insurance cover every warranty I agree to?
Not automatically. If you give very broad or uncapped warranties and indemnities, you may take on
obligations that go beyond what insurers are willing to cover. That is why it is important to align your
contract wording with your insurance and to discuss any unusual clauses with us before signing.
+ -
Does this insurance guarantee we will always meet our SLAs?
No. Insurance does not change your actual operational performance. Instead, it helps protect your
business when incidents occur and customers seek compensation or allege breach of contract or negligence.
Good engineering, monitoring and incident response are still essential.
+ -
Can this cover apply to reseller or partner agreements too?
Often yes, as long as those agreements are disclosed and structured appropriately. Where you extend or
pass through warranties and SLAs via resellers or partners, it is important to ensure your policy and
contracts are aligned. We can help map your route-to-market to your insurance.
+ -
How much cover do we need given our SLAs and liability caps?
Appropriate limits depend on your contract values, customer profile, liability caps and the realistic
scale of potential incidents. We look at worst-case scenarios, deal sizes and procurement expectations to
recommend E&O/PI and Cyber limits that make commercial sense.
+ -
Does this cover apply to contracts outside the UK?
Many policies can cover contracts governed by foreign law or customers based overseas, subject to
specific terms – especially for the USA or Canada. We will ask where your customers are and how your
contracts are structured, then arrange appropriate territorial and jurisdictional cover.
+ -
How do we show customers that our warranties and SLAs are backed by insurance?
Insure24 supplies confirmation of cover and policy schedules summarising your E&O/PI, Cyber, PL and EL
limits. These are often requested by procurement teams, legal departments and security reviewers as part
of onboarding or RFP processes.
+ -
What should we do if a customer says our warranty or SLA has been breached?
Contact Insure24 as soon as there is a serious allegation or threat of claim. Early notification is
critical in claims-made policies. We help you assess whether the issue is likely to fall within your
cover, what evidence will be needed and how best to communicate with the customer and insurers.
+ -
Can our cover evolve as we renegotiate SLAs or sign bigger enterprise deals?
Yes. As your SLAs tighten, your warranties become more ambitious or your deal sizes increase, we can
revisit limits and structure. Many software vendors review cover annually or ahead of major enterprise,
public sector or regulated-sector contracts.