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We work with leading UK insurers for software & technology businesses
CORE INSURANCE BUILDING BLOCKS FOR SOFTWARE & SAAS COMPANIES
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PROFESSIONAL INDEMNITY (PI)
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CYBER & DATA LIABILITY
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PUBLIC & EMPLOYERS’ LIABILITY
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DIRECTORS & OFFICERS
Why Software Companies Need Specialist Insurance
Software and SaaS businesses hold a unique position in modern organisations – running critical processes,
storing sensitive data and powering customer experiences. If your platform fails, is breached or delivers
inaccurate results, your clients can suffer financial loss, regulatory issues and reputational harm.
The right insurance programme goes beyond basic office cover. It should reflect how your product is used,
the data you hold, the contracts you sign and the decisions your leadership team makes. This page gives
an overview of the main covers most software companies should consider.
1. Professional Indemnity & Technology Errors & Omissions (E&O)
Protecting your software company against claims for financial loss caused by mistakes in your work or product.
- Covers claims that your software, configuration, advice or implementation caused a client to lose money.
- Can respond to allegations of negligence, breach of contract, errors in code, incorrect configuration or system design failures.
- Often required in customer contracts, especially with enterprise and public sector clients.
- Can help with legal defence costs even where a claim is unfounded but must be defended.
- Limits commonly start from £1m and scale up depending on deal size and sector.
- Specialist technology E&O wording can better reflect SaaS and platform-based business models.
2. Cyber & Data Breach Insurance
Cover for data breaches, ransomware attacks, system compromise and other cyber incidents.
- Helps with incident response – IT forensics, legal advice, PR support and crisis management.
- Covers certain costs of notifying affected customers and regulators where required.
- Provides protection for third-party claims alleging failure to protect data or systems.
- Can include cover for business interruption following a cyber event or system outage.
- Often required in data processing agreements (DPAs) and security schedules.
- Can be combined with, or sit alongside, professional indemnity and technology E&O cover.
3. Public Liability & Employers’ Liability
Protecting against injury or property damage claims connected to your premises or activities.
- Public Liability – covers claims if someone is injured or their property is damaged due to your business activities (e.g. at your office or on client premises).
- Employers’ Liability – a legal requirement for most UK companies with employees, covering injury or illness claims brought by staff.
- Relevant for software companies with offices, visitors, on-site implementation teams or participation in events and conferences.
- Often requested in office leases and supplier onboarding documents.
- Typical limits: £2m–£10m for public liability; £10m standard limit for employers’ liability.
4. Directors’ & Officers’ (D&O) / Management Liability
Protection for founders, directors and senior decision makers.
- Covers certain claims made personally against directors and officers for alleged wrongful acts.
- Relevant where you have investors, a formal board, complex financing or employee/shareholder disputes.
- Often requested during funding rounds, due diligence and when adding independent non-executive directors.
- May include employment practices liability (EPL) and company legal defence extensions.
- Can be combined with wider management liability packages for growing software businesses.
5. Office, Equipment & Business Interruption
Physical assets and premises may not be your biggest risk, but they still matter.
- Office & Contents – furniture, computers, servers and office fit-out.
- Portable Equipment – laptops, mobiles and devices used by remote or travelling staff.
- Business Interruption – loss of income after insured damage at your premises.
- May be integrated with liability covers into a single office or package policy.
- Still relevant even for “remote-first” teams with some central kit or co-working space.
Other Insurance Covers Software Companies May Need
- Fidelity / Crime Insurance – protecting against employee fraud or theft of funds.
- Intellectual Property (IP) Insurance – support with IP enforcement or defence.
- Key Person Cover – protecting the business against the loss of a key founder or engineer.
- Motor & Hired Vehicle Cover – for any company vehicles or regular business hire.
- Insurance Required by Specific Sectors – e.g. clinical trials, medical devices, financial services or critical infrastructure.
Practical Steps to Build the Right Insurance Programme
- 1. Map Your Activities – product, services, sectors, geographies and revenue split.
- 2. Review Contracts – what insurance clauses do key customers, partners and landlords require?
- 3. Understand Your Data – what personal, financial or sensitive data do you process?
- 4. Document Security – MFA, backups, incident response plans and vendor management.
- 5. Identify Decision Makers – founders, finance and ops leaders who can prioritise risk.
- 6. Work with a Tech-Focused Broker – to structure PI, cyber, liability and management covers around your business model.
Who Is This Guidance For?
Typical organisations that can benefit from a structured software company insurance programme.
Software & SaaS Businesses
- B2B & B2C SaaS Providers
- Vertical Market & Industry-Specific Software Vendors
- Developer Tools & Platform Companies
- Fintech, Healthtech & Regtech Firms
- Data & Analytics Platform Providers
- Marketplace & API-led Businesses
Digital & Technology Service Providers
- Digital Transformation & IT Consultancies
- Managed Service Providers & Cloud Specialists
- Cybersecurity & Data Privacy Consultancies
- Agencies with Proprietary Platforms or Products
- Specialist Integrators & Implementation Partners
- Tech-Enabled Services with Significant Data Exposure
We knew we needed PI and cyber, but weren’t sure how everything fitted together. Insure24 helped us map our risks, align cover with our contracts and build a scalable insurance programme as we expand into new markets.
Alex P., SaaS CEOFREQUENTLY ASKED QUESTIONS
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What is the minimum insurance a software company should have?
At a minimum, most software companies should consider professional indemnity, cyber and
public liability cover. Employers’ liability is a legal requirement for most UK employers.
Beyond that, the right mix depends on your size, sector and funding stage.
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How much professional indemnity cover does a SaaS company need?
Typical limits start from £1m but larger enterprise contracts or regulated sectors may require
£5m or more. We look at your largest contracts, sector expectations and risk appetite to help
you select an appropriate limit.
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Is cyber insurance still necessary if we host everything in the cloud?
Yes. Even when you use third-party hosting and infrastructure, your customers will still look to
your business if their data is compromised or your service is unavailable. Cyber policies can help
you manage the incident and resulting liabilities.
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We’re an early-stage startup – can we still get affordable cover?
Yes. Many insurers now have flexible products aimed at startups and growth-stage software
companies, with scalable limits and the option to pay monthly (subject to status).
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Can we combine multiple covers into one policy?
Often, yes. For many software businesses, professional indemnity, cyber, public liability and
office cover can be packaged together or coordinated across a small number of complementary
policies to avoid gaps and duplication.