Software developer insurance
One application, multiple quotes.
All in one place.
Essential Protection
From
$25.83
/month*
Can provide coverage if a client claims there was a mistake in the professional services you provided.
What’s included:
Professional Liability / Errors & Omissions
Coverage limits: $100K to $3M†
Get multiple quotes in less than 10 mins
Essential Protection
From
$25.83
/month*
Can provide coverage if a client claims there was a mistake in the professional services you provided.
What’s included:
Professional Liability / Errors & Omissions
Coverage limits: $100K to $3M†
Get multiple quotes in less than 10 mins
Would you rather pick and choose your coverage? Explore all options
Over 1 million customers worldwide.
Buy instantly online.
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Why Do I Need Software Developer Insurance?
In your profession, it’s easy to stay focused on code. But as a freelance software developer, you’re your own boss. This means you have to know a little bit about finance, sales, and law. As you churn out new software, don’t forget the business side of what you do.
Below are some of the most common types of insurance policies that software developers carry to stay protected.
What Type of Software Developer Insurance Do I Need?
From
$25.83
/month*
General Liability
A foundational insurance coverage to help handle costs from third-party accidents, property damage, and bodily injury.
From
$20.75
/month*
Equipment and Business Property
Also known as inland marine insurance, this coverage can financially protect equipment and inventory that’s in transport or stored offsite.
From
$20.83
/month‡
Business Owner’s Policy (BOP)
General liability, property insurance, and more all in one convenient package.
From
$33.75
/month*
Workers’ Comp
Coverage to help take care of employees who get sick or injured on the job. Most states require this coverage for small businesses with full- or part-time employees. It also can benefit business owners who don’t have employees.
From
$38.91
/month*
Business insurance —
a quick explainer
Learn more about policies for small businesses, what they cover, why you might need them, and how we can help – all in just 60 seconds.
Business insurance is often made up of different types of policies to cover different things, similar to how your health insurance can be made up of medical dental and vision coverage. Here are some of the ones small business owners need. General liability is kind of the Swiss army knife of insurance. It can do a lot, like help handle costs from third party accidents, property damage, bodily injury, and more. Nobody’s perfect, right? That’s what professional liability is for. It could come in handy in the event of honest mistakes or claims of negligence. Workers’ comp can protect your business and help take care of employees who get sick or injured on the job. Small businesses are big targets for cyber criminals. Cyber Insurance can help cover costs associated with stolen customer data, cyber attacks, breaches, and fraud. BOP or a business owners policy combines different types of coverages like general liability and commercial property insurance. Putting them together for you is where we come in. You tell us a bit about your business online or on the phone, and we customize the coverage options for what you do and what you need. It’s your business, it should be your insurance as well. That’s why we’re here.
What Kind of Insurance Do I Need for My Freelance Software Developer Business?
Whether you just started working on your own or you’ve been at it a while, you need affordable coverage. As a coder, you may not realize that your business is vulnerable—but it is. Software code can be incredibly powerful. Just one mistake can leave an organization at risk for security issues, often costing thousands of dollars.
You don’t want to be left with a lawsuit on your hands. To help protect your business, we recommend these policies:
Professional Liability Insurance
Let’s face it, you’re human. Even the best software developer can make an honest mistake. That said, one error can also lead to a lawsuit. What if a client accuses you of writing code that causes a security breach? Imagine the financial consequences, especially if the client is in healthcare or financial services.
Even if it wasn’t your fault, you may need to defend yourself by hiring a lawyer. That’s why professional liability insurance (PL) is so important for software developers. It can help protect you financially if you get sued for negligence in your services. If you have someone working for you, it can help cover them too.
Here’s an example. Imagine you’re up late writing code for a healthcare client. You’re tired and make a mistake. Unfortunately, your error leaves a backdoor into the software wide open. A few months after delivering the code, your client accuses you of negligence and sues for damages.
If you have professional liability insurance, your policy can help cover the costs of hiring a lawyer, litigation fees, and damages(up to your policy’s limit. With coverage, you’re less likely to dip into your personal assets and more likely to get back on your feet financially. The truth is, a lawsuit can happen to anyone. You want to be prepared if it happens to you.
Professional liability insurance can help cover the costs associated with:
- Negligence or alleged negligence
- Hiring a lawyer to defend yourself
- Omissions or alleged omissions
- Claims and damages
- And more
However, PL insurance usually doesn’t cover:
- Intentional acts and omissions
- Property damage
- Medical expenses
- Bodily injury
- And more
Commercial General Liability Insurance
As a software developer, most of your work is done at an office or in your home. As a result, you may not realize you’re also at risk for an accident, damage, or injury. That’s why you need commercial general liability insurance (GL insurance), in addition to a PL policy. It can help cover the costs associated with unexpected accidents or damage.
The truth is, you never know what can happen, especially if you invite a client into your workspace. That’s why we recommend general liability insurance to all software developers. In fact, we consider it a foundational policy because it can help cover expensive accidents or injury claims—averaging about $30,000 each!
Without general liability insurance, you may have to cover the costs of an accident or injury on your own. Unfortunately, medical bills can really add up, and they’re enough to put many developers out of business.
Let’s look at an example of how GL insurance can work. Imagine you invite a client to come to your office to discuss a potential project. After a successful meeting, your client goes to leave, but ends up tripping and falling down your stairs. Unfortunately, he’s badly injured, and needs to go to the hospital for his injuries. As a result, he wants to sue you for his medical costs.
Fortunately, with GL coverage, your policy may cover some or all of the costs of those medical bills, as well as legal fees if the client decides to sue you (up to your policy limit).
If you have general liability insurance, your policy can help cover costs associated with:
- Bodily injury to another person
- Third-party property damage
- Personal and advertising injury
- Medical expenses
- And more
Keep in mind, most GL policies don’t cover:
- Damage to your own personal property
- Professional services
- Workers compensation or injury to your employees
- Damage to your work
- Automobiles while in business use
- Expected or intentional injury or damage
- And more
Workers Compensation Insurance
Some software developers hire part-time or full-time help, especially if their businesses are growing. Even if you have just one employee, you should consider getting workers compensation insurance. This type of policy can help cover you if an employee gets injured or sick while working for you.
Some states even require you to carry workers compensation insurance before conducting work. It’s important to check your state’s laws first.
In general, most small business owners should get workers compensation insurance if they have employees. The average work injury claim can be extremely expensive—a whopping $41,000! Plus, work injuries are fairly common in the United States. Did you know that in 2018 Americans reported $170.8 billion in workers compensation claims?
Fortunately, if you have workers compensation insurance, your plan can typically cover:
- Medical payments
- Lost wages
- Rehabilitation expenses
- Death benefits
Why Should I Get Insurance for Software Developer Business?
Many software developers don’t realize the importance of getting business insurance. Maybe you’re just starting out and want to keep costs down. Or maybe you don’t think a lawsuit can happen to you.
Here’s the bottom line. If you don’t have developer liability insurance, you’re at risk. A mistake can happen at any time, and accidents and injuries are far more common than we like to admit. You don’t want to put your livelihood and everything you’ve worked hard for at risk. That’s why getting business insurance is worth it.
Without a policy, you might be on the hook to pay thousands of dollars on your own. Just imagine if one of these claims is brought against you:
- Reputational Harm — $50,000
- Client Injury or Damage — $30,000
- Client Slip and Fall — $20,000
Can you afford to pay these costs on your own? For most software developers, business insurance is too important not to buy. Plus, if you have a policy, you can enjoy peace of mind knowing your business is protected.
If you think a lawsuit can’t happen to you, statistics aren’t on your side. Unfortunately, 43% of small business owners say they’ve dealt with a threatened or actual lawsuit. These days, it’s easy for clients to sue software developers, claiming negligence in their services. And whether you’re at fault or not, you may need to pay for a lawyer to defend yourself.
At Simply Business, we want you to avoid dealing with an expensive lawsuit on your own – because you shouldn’t have to! Business insurance is readily available to help protect software developers, and we’re here to help you find affordable coverage.
If you’re ready to get insurance today, go to our online quote form. We’ll ask you a few quick questions about your business. Then we’ll recommend policies that can work for you. If you’d like, we can also send you a certificate of insurance (COI) to share with clients and vendors.
So what are you waiting for? Get your free quotes today.
What Does Software Developer Insurance Cost
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Get a quick estimate in just 3 steps.
Answers to More Software Developer Insurance Coverage Questions
It depends on where you live. Every state has different laws. Some states require software developers to have insurance, but others don’t.
It depends on where you live. Every state has different laws. Some states require software developers to have insurance, but others don’t.
Here’s the good news. If you get business insurance through Simply Business, you don’t need to know your state’s laws. Our online quote form only shows policies that work in your state.
In general, yes, business insurance is a tax deductible expense for software developers. It’s another great reason why getting a policy is worth the cost, as it can help lower your tax deductible income.
If you have questions about what expenses you can deduct, we recommend talking to an accountant. They can help you understand how it works.
ifferent needs. Our online platform generates quotes for coverage based on your business’s:
- Size
- Location
- Annual revenue and payroll
- And more
We want to make getting insurance easy for you. You shouldn’t have to dig through several policies before finding the right policy—that’s what we’re here for. Our site can show you the cost of insurance policies that meet your business’s needs.
If you have additional questions, reach out to one of our licensed insurance agents. A member of our team is always here to help.
We want to make getting software liability insurance easy and fast. To make the process go as quickly as possible, it helps to have this information on hand:
- Annual revenue estimates
- Payroll estimates
- Information on any previous claims
Yes, it’s possible, as every state operates a little differently. Once you answer a few questions about your business, including your location, our free quote tool can show you policies that provide coverage in your state.
For most software developers, we recommend full coverage. This can include a combination of professional liability, general liability, and workers compensation policies (if you have employees).
Together, these policies can help cover claims resulting from:
- Bodily injury
- Accidents and damages
- Employee injuries
- Negligence or alleged negligence
- And more
There’s no “one-size-fits-all” answer. The truth is, the cost of policies can greatly vary. To help you get an accurate quote, we ask questions about your business first. Then our online quote tool can compare prices for policies based on your business’s:
- Payroll and revenue estimates
- Location
- Services
- And more
Wondering what a business insurance policy might cost you? Head to our online quote tool to find out. It can take just 10 minutes or less to compare costs.
Why Small Businesses Choose Simply Business
Small business insurance is what we do. Whether it’s covering you for accidents and errors, meeting workers’ comp requirements, or financially protecting your business from the unexpected, we can help find the coverage you need for your business.
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*The displayed price for each product is a monthly estimate calculated from the 10th percentile of relevant policies sold by Simply Business (e.g., General Liability data is used for General Liability estimates). This estimate uses data from relevant policy sales between July–December 2025. Final price and payment terms, which may include an initial down payment, are subject to change based on your state, selected insurance provider, and specific business details.
† Limits may vary by state and nature of your business.
‡ Displayed price is based on the lowest available coverage limit for Equipment and Small Tools policies.
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