Essential insurance types for freelance developers

Freelancing is a great career move as a developer. It lets you opt-out of crunch culture and choose a better work-life balance. As a freelance developer, you can set your own work hours, pick the projects you want to work on, and demand a fee that matches your level of experience, training and skill.  

But a move to freelancing should also be taken with your eyes open – and that means knowing that working self-employed does come with an extra set of risks and responsibilities that you need to think about before you start working. One of these is making sure your livelihood is covered by holding comprehensive business insurance. 

Do freelancer developers need business insurance? 

If you work for an employer, you’ll be covered by their own business insurance if things go wrong during your work. But when you’re freelance – unfortunately, you’re out on your own. That’s why it’s worth considering business insurance for developers. 

You may have some cash set aside for emergencies, but chances are it wouldn’t be enough to cover the cost of being sued by a client. That’s where freelance developer insurance comes in to protect your business if something goes wrong. 

But insurance isn’t just for emergencies, holding it can also ensure you look more professional and trustworthy to those clients who might require proof of cover before they hire you.  

Luckily, there are specialist insurance products tailored especially to the needs of freelancers. But exactly which of these confusing-sounding policies should you be taking out? Let’s take a closer look at what might be included in freelance web developer insurance or freelance software developer insurance. 

Professional Indemnity insurance for freelance developers  

Professional Indemnity insurance acts almost as a guarantee of the quality of your work. Even if you’re extremely careful, mistakes can happen when you’re developing which mean that the finished product might not be exactly what the client wanted. If they think that your negligence or bad advice has caused them financial loss, they may try and bring a claim against you in a civil court. Ditto if they think you have breached confidentiality, committed defamation or used copyright material without permission. 

Example freelance developer Professional Indemnity claim:  

A client has asked you to create a bespoke e-commerce app to help their customers shop online and keep track of their orders and loyalty points. However, due to ongoing personal issues, you deliver the project late, and when the app goes live there are all sorts of teething problems which mean the business misses out on orders.  

The client is disappointed with the performance of the app and tries to claim back part of your fee and the money they feel they lost through sales that could not complete. If you don’t have insurance, you could be looking at hefty compensation claims and legal fees (possibly for both sides) – money that most freelancers don’t have.  

How Professional Indemnity insurance can help: 

If you have Professional Indemnity cover in place, you’ll be sorted with a team of expert lawyers and money and fees due covered, taking the worry and stress off your shoulders as well as the financial burden. 

Public Liability insurance for freelance developers 

This is important insurance for software, app or web developer freelancers who work out and about or who deal with the general public. If you ever use co-working spaces, visit clients’ premises or have visitors into your workspace, Public Liability insurance is a must. It’s an insurance policy that protects you by covering compensation and legal fees if someone is injured or their property damaged in the course of your business. 

Example freelance developer Public Liability claim:  

You’re working on a new piece of software and head out to work from a cafe for a change of scene. As you beaver away, lost deep in your code, a passer-by trips over your laptop cable and hurts themself. If their injuries are serious and prevent them from working for a while, they may try and claim against you for the cost of their rehabilitation and lost earnings. These types of claims can run into thousands of pounds – not small change for a freelancer.  

How Public Liability insurance can help: 

Luckily for those who hold Public Liability insurance, the policy will often cover the claim amount up to your policy limit (usually £1million as a minimum). 

Business Equipment insurance for freelance developers 

As a developer, your laptop, computers, hard drives and smartphone are the tools of your trade. Without them, you wouldn’t be able to work, losing you precious income. Business equipment insurance often will insure any gear owned by your business against loss, theft, or damage, anywhere in the world. With your insurer able to provide a replacement or cash straight into your bank account within 24 hours so you can get back to coding straight away. 

Example freelance developer Business Equipment claim:  

You leave your laptop stored securely in a locker in your favourite co-working spot. Unfortunately, there is a break-in overnight; the locker has been forced open, and your top-of-the-range kit is gone. Disaster!  

How Business Equipment cover can help: 

Without insurance, you’d be having to dig into your profits to fork out for a new one. However, if you’re a smart cookie who’s taken out business equipment cover, your insurer will arrange for a like-for-like replacement to be with you ASAP or send you the money so you can buy one yourself. 

Cyber Liability insurance for freelancer developers 

In your business it’s likely that you have access to your clients’ systems, meaning you have access to sensitive data and the potential of letting scammers directly into your clients’ business. 

If your business (or your clients’ business due to your actions) is targeted by scammers or hacks, then Cyber Liability insurance provides essential support. It covers costs related to recovering access to accounts, managing reputational damage, and any fines you might face for compromised client data. It can also potentially cover you for any regulatory fines that might be incurred too. 

Example freelance developers Cyber Liability claim:  

You click a link in an email claiming to be from WordPress Support. It’s a phishing scam, and hackers gain access to your client’s accounts, posting inappropriate content to their website that damages their reputation. This means you can’t continue working for that client and you must explain to them why their website has been comprised. This results in lost income for your business and a dip in your reputation. 

How Cyber Liability insurance can help: 

If you hold a Cyber Liability policy, then you can immediately access support via the 24-hour support line. It’s likely there will be a team on hand to help return your website access and improve your computer system resilience so it’s less likely to happen again. If you lose any business income, then the Business Interruption cover can help you cover this loss too.  

Why choose Kingsbridge for insurance for your freelance development business? 

Freelance development can be an incredibly high-pressure and busy world. We design our insurance policies to provide peace of mind so you can focus on working for your clients. Here at Kingsbridge, we’ve been providing insurance to freelancer developers for many years. We have tailored a policy package for development experts, built by our years of expertise, ensuring your insurance package has everything your freelance business needs. 

We offer flexible monthly payments to make insurance accessible and affordable for you, so it’s one less bill to worry about. And you can adjust your coverage as your business grows so you are always adequately protected. Plus, our Price Promise guarantees you won’t find the same cover for less elsewhere.  

Don’t wait, contact us today for a quote either online or by ringing our team on 01242 808740 to protect your business and reputation today with Kingsbridge’s specialised insurance for freelancer developers.