What Insurance Does a Software Developer Need?
Software developers often consider technology E&O or professional liability for client claims about errors, omissions, or failed deliverables.
III names software developers among professions that should consider professional liability. A developer may need a technology-specific form when work includes custom code, licensed software, SaaS, integration, maintenance, or hosting, but the label alone does not establish coverage. Tell the insurer whether you build for clients, sell a product, use open-source components, provide updates, or process client data. Compare scheduled services, IP and privacy terms, contractual warranties, bodily-injury/property-damage exclusions, subcontractor definitions, and claims-made reporting conditions. General liability may address separate premises or physical-damage exposures, while cyber may address security incidents. Match each policy to your work and contracts.
If you maintain legacy code or support a product after delivery, verify those continuing services stay covered at renewal. Disclose prior complaints and known defects accurately.
Also review prior-acts continuity and extended reporting options if changing carriers, because a new policy may not accept older work automatically.
Related Coverage
Sources
- Professional liability insurance. Insurance Information Institute; Opening paragraphs (professional services/advice and E&O name); Claims not covered by general liability; What types of businesses need professional liability insurance?; What’s covered… and what’s not (claims-made versus occurrence, defense and judgments, non-financial/intentional limits, BOP/in-home exclusion). Accessed 2026-09-25.
- Professional Liability – US Direct Errors and Omissions Insurance. Hiscox Inc. specimen; About this Policy / Coverage for Claims Made Against You; I.A Insuring Agreement; I.B Defense; I.C Settlement; II.A Notice of Claims; II.C Optional Extended Reporting Period; III.A, III.K, III.M, III.R, III.S Exclusions; IV.A–B Limits and Deductible; VI.O Professional Services; VI.U Wrongful Act. Accessed 2026-09-25.
- Technology Errors and Omissions Insurance. The Hartford; What Is Technology Errors and Omissions Insurance?; Coverage; Works With Contracts; Types of Companies That Need Tech E&O Insurance. Accessed 2026-09-25.
