How Much Is Business Insurance
for Web Developers?

As the owner of a small web development business, you've probably wondered what other web developers pay for their insurance and what coverage they have. Let's look at seven common web design insurance policies and their typical annual premiums.

Keep in mind that these are just sample estimates to use as a reference point. For your specific business's insurance costs, you'll need to apply for a quote.  

HOW MUCH IS
General Liability?

How Much Does General Liability Insurance Cost?

General Liability Insurance is considered the foundation of most business protection plans. It pays for third-party lawsuits over property damage, physical injuries, and copyright infringement. So if your web development company is sued when you build a website that uses some of the same design elements as a competitor, GL Insurance can cover your legal expenses.

The typical web developer pays $425 in annual premiums for General Liability Insurance.

Median Premiums, Limits and Deductibles on General Liability Insurance for Web Designers and Developers
Name USD

Median policy premium:

$425

Median policy limit:

$2 million

Median policy deductible:

None

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

HOW MUCH IS
a BOP?

How Much Does a Business Owner's Policy Cost?

If you want to save money on your insurance, a Business Owner's Policy is the way to go. It bundles General Liability and Property Insurance together at a reduced rate, and it's available to small-business owners with low-risk profiles.

The typical web developer or design firm pays $500 to $571 in annual BOP costs.

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

Median policy premium:

$500 - $571

Median policy limit:

$2 million

Median policy deductible:

$250

HOW MUCH IS
E&O Insurance?

How Much Does Errors and Omissions Insurance Cost?

Your clients will often require proof of your Errors and Omissions Insurance before you can start work. That's because E&O covers your professional liabilities, including lawsuits over client data breaches (third-party cyber liability), outages / downtime issues, and other problems clients could have with your work.

The typical web developer or designer pays $700 to $1,291 in annual premiums for Errors and Omissions Insurance.

Median Premiums, Limits and Deductibles on E&O Insurance for Web Designers and Developers
Name USD

Median policy premium:

$700 - $1,291

Median policy limit:

$1 million

Median policy deductible:

$2,500

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

HOW MUCH IS
Commercial Auto?

How Much Does Commercial Auto Insurance Cost?

If you or one of your employees is in an auto accident, Commercial Auto Insurance can cover the company's liability expenses and pay for repairs and damages owed to another party. Many personal auto policies don't cover work accidents, so adequate commercial coverage is essential.

Typically, Commercial Auto Insurance for web design companies costs $2,042 to $3,585 in annual premiums.

Median Premiums, Limits and Deductibles on Commercial Auto Insurance for Web Designers and Developers
Name USD

Median policy premium:

$2,042 - $3,585

Median policy limit:

Varies

Median policy deductible:

None (liability only)

Note: because Commercial Auto Insurance has a variety of coverage options, policy prices, limits, and deductibles vary wildly. Contact an insureon representative for more information.

HOW MUCH IS
a Fidelity Bond?

How Much Are Fidelity Bonds?

If you build websites for clients in the financial services industry (e.g., investment firms, banks, or financial advisers), there might be a clause in your contract that requires you to have Fidelity Bond Insurance. Fidelity Bonds cover a client's losses when your employees steal from them or use their data to commit fraud.

Fidelity Bond Insurance typically costs $595 to $1,242 in annual premiums for web design and development firms.

Median Premiums, Limits and Deductibles on Fidelity Bond Insurance for Web Designers and Developers
Name USD

Median policy premium:

$595 - $1,242

Median policy limit:

Varies

Median policy deductible:

$10,000

HOW MUCH IS
Umbrella Insurance?

How Much Does Umbrella Insurance Cost for Web Developers and Designers?

Umbrella Insurance can offer millions more to your liability protection. You can purchase this coverage in $1 million increments, which can be applied to your General Liability, Commercial Auto, and Employers' Liability Insurance (part of your Workers' Comp policy) when these policies' limits have been reached.

The typical web development company pays $404 to $1,200 for Umbrella Insurance.

Median Premiums, Limits and Deductibles on Umbrella Insurance for Web Designers and Developers
Name USD

Median policy premium:

$404 - $1,200

Median policy limit:

Varies

Median policy deductible:

None

To see how the cost of Umbrella Insurance for web developers compares with other industries, visit Insureon's Umbrella Insurance Cost Analysis New browser window icon..

HOW MUCH IS
Workers' Comp?

How Much Does Workers' Compensation Insurance Cost?

State laws usually require web developers and contractors to have Workers' Compensation Insurance once they hire employees. This policy covers medical costs and replacement wages when employees suffer work injuries or illnesses (e.g., carpal tunnel syndrome).

The typical Workers' Comp policy costs $355 to $682 annually for web development companies.

Median Premiums, Limits and Deductibles on Workers' Comp Insurance for Web Designers and Developers
Name USD

Median policy premium:

$355— $682

Median policy limit:

$500,000

Median policy deductible:

None

If you have any questions about your legal obligations, read our state guide to Worker's Comp laws New browser window icon..

To see how the cost of Workers' Compensation Insurance for web 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 Web Development and Design Firms

To receive free insurance quotes on any of these policies, submit an online insurance application.

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