Leo compares the UK market and shows you PI policies side by side for software developers. £1M cover, instant activation.
Professional indemnity insurance protects you and your business against the costs of claims made by clients who have suffered loss due to your professional advice or work. For software developers, this is particularly important as a single mistake or oversight can result in significant financial liability.
The main risks software developers face include: software bugs, data breaches, project delivery failures
Regulatory requirement: BCS strongly recommends all practising software developers to hold professional indemnity insurance.
The amount of professional indemnity insurance cover you need depends on the size of your business, the types of clients you work with, and the potential value of claims. Most software developers opt for cover between £500,000 and £2 million.
The right level of cover depends on the size of your projects, your annual revenue, and any contractual requirements from your clients. Leo's comparison tool can help you explore different cover levels and see how they affect your premium.
The cost of professional indemnity insurance for software developers varies depending on:
As a guide, software developers typically pay from £10 per month for professional indemnity insurance.
Compare PI insurance in 60 secondsYour software development fails to meet functional requirements, resulting in an application that doesn't perform as specified or intended.
Your code contains security vulnerabilities that result in a data breach or cyberattack that your client alleges you should have identified.
Your software development causes data loss or corruption, resulting in loss of critical business information.
Your application causes system or performance issues for your client's business, resulting in business interruption or loss.
Professional indemnity insurance for Software Developer typically covers:
Software developers should hold professional indemnity insurance, particularly those developing business-critical applications. Cover of £500K-£1M is appropriate for most software developers, depending on application criticality and client size. Your policy should cover development errors, security vulnerabilities, and data loss. If you develop software for regulated sectors (financial services, healthcare) or mission-critical applications, ensure adequate cover. BCS membership recommends professional indemnity insurance.
Approximately 18% of software development practices have faced a professional indemnity claim. The average claim is valued at £85,000. Functional requirement failures account for 38% of claims, whilst security vulnerabilities represent 32% of claims. Data loss from software defects accounts for 18% of claims.