How Much Is Business Insurance
for Software and Application Developers?

Whether they work on frontend UX or backend development, software and app developers face numerous risks that could lead to lawsuits and major financial losses. Small business insurance protects you from these expenses.

After helping more than 6,000 developers find coverage, we know a thing or two about IT insurance. We've looked at the numbers, and made the following estimates. Though your actual costs may vary depending on the specifics of your business, these sample insurance quotes show you what the typical developer can expect to pay for IT insurance.

HOW MUCH IS
General Liability Insurance?

How Much Does General Liability Insurance Cost?

General Liability Insurance covers your software business's costs when a third party (anyone not employed by your business) sues it. GL Insurance covers lawsuits over property damage (e.g., breaking a computer while working onsite at a client's office), physical injuries, and copyright infringement. This is one of the most common types of business insurance. Many lease agreements require you to have it because it pays for a lawsuit if you damage the landlord's building.

Software and web app developers usually pay $425 to $429 for their annual General Liability Insurance premiums.

Median Premiums, Limits and Deductibles on General Liability Insurance for Software and Application Developers
Name USD

Median policy premium:

$425 - $429

Median policy limit:

$2 million

Median policy deductible:

None

To see how the cost of General Liability Insurance for software and application developers compares with other industries, visit Insureon's General Liability Insurance Cost Analysis New browser window icon..

HOW MUCH IS
a Business Owner's Policy?

How Much Does a Business Owner's Policy Cost?

Many mobile, web, and software developers cover their business with a Business Owner's Policy, which bundles General Liability (see above) and Property Insurance at a discounted small-business price. Property Insurance covers equipment, computers, and other commercial property in the event of property loss by fire, theft, or windstorms.

A typical software or app developer pays $500 to $567 a year for BOP coverage.

Median Premiums, Limits and Deductibles on Business Owner's Policies for Software and Application Developers
Name USD

Median policy premium:

$500 - $567

Median policy limit:

$2 million

Median policy deductible:

$250

HOW MUCH IS
Commercial Auto?

How Much Does A Commercial Auto Insurance Policy Cost?

If you or an employee is in a car accident, Commercial Auto Insurance can cover your software business's legal expenses, repair costs, and other costs. It's important to note that many personal auto insurance policies won't cover accidents that happen while you're driving for work. When you're visiting a client, traveling to a meeting, or making a sales presentation, you need Commercial Auto Insurance to cover your accident risk.

Software developers can expect to pay $1,571 to $2,750 in annual premiums for Commercial Auto coverage.

Median Premiums, Limits and Deductibles on Commercial Auto Insurance for Software and Application Developers
Name USD

Median policy premium:

$1,571 - $2,750

Median policy limit:

Varies

Median policy deductible:

None on Liability

HOW MUCH IS
E&O Insurance?

How Much Does Errors and Omissions Insurance Cost?

Lawsuits over data breaches, software defects, testing errors, missed deadlines, compatibility problems, and other software and app development liabilities can be covered with Errors and Omissions Insurance (also called Professional Liability Insurance).

Say you write a mobile app for a client. If the app is hacked, you could be sued for the breach. Even if you use third-party services that handle the in-app financial transactions, you could still be sued if the client's data is exposed. Any data breach related to your work could lead to years of legal bills.

The typical Errors and Omissions cost for software developers ranges from $700 to $1,215 a year.

Median Premiums, Limits and Deductibles on E&O Insurance for Software and Application Developers
Name USD

Median policy premium:

$700 - $1,215

Median policy limit:

$1 million

Median policy deductible:

$2,500

To see how the cost of Errors and Omissions Insurance for software and application developers compares with other industries, visit Insureon's Professional Liability Insurance Cost Analysis New browser window icon..

HOW MUCH IS
a Fidelity Bond?

How Much Do Fidelity Bonds Cost?

Some industries require Fidelity Bond coverage from software contractors before hiring them (this practice is especially common in financial services). Fidelity Bonds insure your clients from losses when your employees steal property, commit fraud, or use stolen data to commit identity theft. If you contract with an investment firm, this insurance covers damages if one of your employees misuses their access to the firm's financial data and accounts.

Fidelity Bonds typically cost $788 to $1,384 a year for software developers.

Median Premiums, Limits and Deductibles on Fidelity Bonds for Software and Application Developers
Name USD

Median policy premium:

$788 - $1,384

Median policy limit:

Varies

Median policy deductible:

$10,000

HOW MUCH IS
Workers' Comp?

How Much Does Workers' Compensation Insurance Cost?

State laws usually mandate that employers have Workers' Compensation Insurance (also called Workman's Comp or Workers' Comp), which covers employee medical expenses, funeral costs, and lost wages after workplace accidents, injuries, and illnesses. If your software business has employees, you probably need this coverage.

To meet Workers' Comp requirements, web app and software developers typically pay $348 to $642 in annual premiums.

Median Premiums, Limits and Deductibles on Workers' Comp Insurance for Software and Application Developers
Name USD

Median policy premium:

$348 - $642

Median policy limit:

$1 million

Median policy deductible:

None

For more information about your state's regulations, check out our state-by-state guide to Workers' Compensation Insurance laws New browser window icon..

To see how the cost of Workers' Compensation Insurance for software and application developers compares with other industries, visit Insureon's Workers' Compensation Insurance Cost Analysis New browser window icon..

Get Free Insurance Quotes

Free Insurance Quotes for Software Developers, Coders, and App Designers

For a free estimate on the cost of software developer insurance, submit an online insurance application.

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