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App Developer Insurance
Smartphone / Mobile Phone / Tablet Application Development
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Why do app developers need insurance?
If a bug in your Android or iOS app causes a client to lose money, you could face a lawsuit. Mobile app developer insurance protects against legal costs over code errors, missed deadlines, and other accidents. It also guards against risks like property damage, data breaches, and injuries.
Find the right coverage
Insureon helps application developers find small business insurance that matches your unique risks.
Get free expert advice and peace of mind knowing you have the right coverage for your app development company.
What types of insurance do mobile app developers need?
These insurance policies cover the most common risks of app development.
Technology errors and omissions insurance
Tech E&O, also called professional liability insurance, covers claims related to your work quality, such as a bug in a new app. You can add intellectual property and media liability coverage.
BEST FOR
- Late release of a mobile app
- Failure to meet specifications
- Accusations of negligence
Cyber insurance
This policy covers financial losses caused by data breaches and cyberattacks. It's recommended for any app development business that handles sensitive information, like credit card data.
BEST FOR
- Lawsuits from cyberattacks
- Client notification expenses
- Data breach legal costs
General liability insurance
This policy covers common risks that can affect any app developer, such as client injuries in your office. Bundle it with commercial property for savings in a business owner’s policy (BOP).
BEST FOR
- Customer bodily injuries
- Customer property damage
- Copyright infringement claims
Fidelity bonds
This bond, also called an employee dishonesty bond, provides clients with reimbursement for employee theft. It may be required by client contracts.
BEST FOR
- Illegal funds transfer by an employee
- Employee theft
- Employee fraud
Workers’ compensation insurance
Most states require workers' comp insurance for app development companies with employees. It also protects sole proprietors from work injury costs health insurance might deny.
BEST FOR
- Employee medical expenses
- Disability benefits
- Legal fees from employee injuries
Commercial auto insurance
Commercial auto insurance covers property damage and medical bills in accidents involving business vehicles. Most states require this coverage for vehicles owned by a business.
BEST FOR
- Car accidents
- Vandalism and theft
- Weather damage
Looking for different coverage? See more policies.
How much does app developer business insurance cost?
A mobile app developer who works independently will pay less for insurance than a larger company.
Factors that affect premiums include:
- Services offered
- Business property and equipment
- Business size and annual revenue
- Number of employees
- Types of insurance coverage purchased
- Policy limits and deductibles
How E&O insurance protects your business
View video transcript.
No, no, no! My client's network was working just fine last week!
You made a mistake, yeah, you made a mistake. You made a mistake, and it doesn't matter what you say. You missed the boat, now you will have to pay!
Actually, you have errors and omissions insurance. It covers legal costs if you make a mistake and your client sues you.
Mistake! Mistake! Ohhh, this was a mistake! Mistake! Mistake! Ohhh, this was a mistake!
You can get all the coverage your business needs by following this link. Protection is peace of mind!
How do I get app developer insurance?
It's easy to get app developer business insurance if you have your company information on hand. Our insurance application will ask for basic facts about your business, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose policies.
- Pay for your policy and download a certificate.
Insureon's licensed insurance agents work with top-rated U.S. providers to find coverage that fits your mobile app business, whether you work independently or hire employees.
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Common questions about insurance for app developers
Review answers to frequently asked questions (FAQs) about app development insurance and more.
Why is business insurance necessary for app developers?
Whether you're just starting your app development business or are well established, there are several types of insurance to help protect your business from costly lawsuits.
Here’s a closer look at some key insurance products and why you should carry them:
- Technology errors and omissions insurance, sometimes called tech E&O or tech professional liability insurance, is a bundle of E&O with cyber insurance. This policy can help you with legal fees and court costs if a dissatisfied client sues you over your work performance or a third-party cyber incident. It covers the cost of customer notification, credit monitoring, defense costs, and fines.
- Commercial property insurance covers your business property and equipment if it's damaged, lost, or stolen at your fixed business address. This policy is often bundled with general liability insurance in a business owner's policy (BOP) to save money. Should your machinery or equipment suffer a mechanical or electrical failure, equipment breakdown coverage would provide the funds to repair or replace the damaged equipment.
- Electronic data processing insurance (EDP) covers electronic devices such as computers, storage devices, and the data they contain. Also known as computer coverage or data processing coverage, EDP insurance can help protect against data loss during a power surge, fire, natural disaster, or similar event.
- Business income insurance, also known as business interruption coverage, offsets your lost net income when your business is forced to close because of a covered peril, such as property damage. These funds help you cover your normal operating expenses until you can resume business operations.
- Employment practices liability insurance (EPLI) is a type of management liability insurance that protects your business from employee lawsuits over discrimination, unfair termination, or another violation of their rights.
- Directors and officers insurance (D&O) covers legal costs if an officer or board member is sued over a decision they made on behalf of your company.
Are app development companies required to have insurance?
Depending on your industry and state, some policies aren't required by law. However, app development companies can protect their livelihoods and qualify for contracts and leases by carrying the right insurance coverage. For some app dev businesses, workers' compensation and commercial auto insurance may be required.
Typically, mobile application development startups will apply for general liability insurance first. This policy helps cover common business risks such as customer injuries, damage to a customer’s property, and advertising injuries.
Even small app development businesses are vulnerable to the same exposures and lawsuits as larger businesses. This is another reason why you should consider application development business insurance.
In order to accept certain contracts, you may need to have a fidelity bond, which reimburses the client if one of your employees commits fraud, theft, or forgery.
Do app development businesses need professional indemnity insurance?
While application developer businesses aren't required by law to carry professional indemnity insurance, it should be a key component of your business's risk management plan.
Professional indemnity insurance, also called professional liability insurance or errors and omissions (E&O) insurance, protects you in the event a client files a lawsuit against your app business for an error, mistake, or professional negligence. This type of coverage is sometimes referred to as software liability insurance for technology businesses.
You can bundle professional liability insurance for app developers with cyber insurance (also called cyber liability insurance) into a technology professional liability policy, which is more commonly referred to as tech E&O. This would be a more affordable insurance option than purchasing the policies individually.
How can I save money on app developer business insurance?
There are many steps you can take to get affordable coverage that meets your app developer insurance needs.
Start by comparing free business insurance quotes from leading insurance companies through Insureon’s online application. If you're unsure what app or software development insurance solutions you need, our licensed insurance agents can help make sure you get the right, most affordable coverage.
Most small businesses can get insured and download a certificate of insurance within hours of applying for quotes.