Business and technology
Technology Company Insurance
for UK AI, software, SaaS, IT, cloud, data and fintech businesses
One policy built around the claim a software business actually receives, which arrives as a breach of contract rather than as an allegation of negligence.
- AI, software, SaaS, IT, cloud, data and fintech
- Professional indemnity and cyber together
- Written for companies with customers and contracts
- FCA authorised and regulated
Quick answerTechnology company insurance packages professional indemnity, cyber, property and business interruption around what a software business actually sells. The section that decides everything is the professional indemnity one, because a technology wording names breach of contract as an insured peril and a general wording answers negligence.
At a glance
Technology Company Insurance at a Glance
Short answers to what UK technology companies ask before they compare anything.
| Question | Quick answer |
|---|---|
| What is actually in it? | Technology professional indemnity and cyber at the centre, with property, liability and business interruption around them. |
| Is any of it compulsory? | Only employers liability, at £5m, once you employ anyone who is not the majority shareholder or a close relative. |
| So why does everyone hold it? | Because customers put it in the contract. The insurance clause in an enterprise agreement is what sets your limits. |
| What should I check first? | Whether the professional indemnity section names breach of contract and service levels, or only negligence. |
| Is general professional indemnity enough? | Rarely. It is built around negligence, and software claims are framed as breach of contract. |
| What if my cloud provider goes down? | It falls between three policies and only lands in dependent business interruption, where the sub-limit and the carve-outs decide what you actually get. |
| Does it cover a data protection fine? | Conditionally at best. Compensation to the people whose data was exposed is the part that is straightforwardly insured. |
| What moves the price? | Turnover, what you build, who buys it, the limits your contracts demand and how you handle customer data. |
The basics
What Is Technology Company Insurance?
Technology company insurance is a package built around the way software businesses get sued: not for carelessness, but for failing to deliver what a contract promised. It puts a technology professional indemnity section at the centre and arranges cyber, property, liability and business interruption around it.
Nothing is sold under that exact name. What a broker places is a commercial combined policy assembled for the sector, and the mix shifts hard depending on what you sell. A consultancy billing days, a SaaS platform holding customer data and a managed service provider with root access to other people networks are three different risks wearing the same job title. The general version of the central section is professional indemnity insurance.
What a technology policy has to do
- A professional indemnity section written for how software is actually sold
- Cyber alongside it, drafted to meet it rather than to overlap it
- Limits taken from your customer contracts rather than picked off a list
- Property and liability for the office, the hardware and the people
Assembled per business
A technology schedule, typically
- Technology professional indemnityWhat you owe your customerCore
- CyberWhat an attack costs youCore
- PropertyOffice, fit-out, kit in a rackMost
- Public and products liabilityVisitors, and hardware you shipMost
- Employers liabilityCompulsory past your first hireOnce staffed
How it works
How Does Technology Company Insurance Work?
You describe what the business sells and to whom, set limits from your customer contracts rather than from a price list, and the cover runs for twelve months. Professional indemnity is claims-made, so it is the policy live when the claim arrives that answers rather than the one live when you did the work.
Describe what you actually sell
Licensed software, a hosted platform, consultancy days, managed infrastructure or hardware. Two companies with the same turnover and different delivery models get priced nothing like each other.
Take the limits out of your contracts
Your biggest customer agreement already specifies a limit and how long you must maintain it after the contract ends. Read that before choosing a number, because buying under it is a deal you cannot sign.
Tell them when the model changes
Shipping your first hardware, taking your first public sector framework, moving from advising on systems to running them, or putting a model into production all change what you are. Each is a call worth making.
The two sections are triggered differently and it matters. Professional indemnity answers claims made during the policy year, whatever year the work was done, so letting it lapse after a project ends leaves a later claim with nothing to attach to. Cyber is a hybrid: its liability half works the same way, but incident response, rebuilding data and business interruption are triggered by an incident you discover while the policy is live. Keeping cover running protects the first half, not the second. More at our professional indemnity page.
What it covers
What Does Technology Company Insurance Cover?
Technology professional indemnity answers what you owe your customer. Cyber answers what an attack costs you. Property, liability and business interruption cover the physical business around them, and employers liability is compulsory once you hire.
Technology professional indemnity
The centre of the policy. Breach of contract, service levels and liquidated damages, plus claims that your code opened a hole in your customer systems or interrupted their business. Compare it against general professional indemnity insurance.
Cyber
Your own losses rather than your customer: incident response, extortion, rebuilding data, regulatory costs and lost income after an attack on you. The standalone product is cyber insurance.
Property and equipment
Offices, fit-out, laptops and anything you own sitting in a rack. It still matters to a fully remote company, because the hardware exists somewhere: commercial property insurance.
Public and products liability
A visitor hurt at your office, or damage you cause on a customer site. If you ship hardware the products half matters far more than most software firms expect: public liability insurance.
Employers liability
Compulsory at £5m once you employ anyone beyond a sole owner-shareholder or close family: employers liability insurance.
Business interruption
Income lost after insured damage to your own property. The trigger is narrower than most founders assume.
Worth asking about
Intellectual property infringement
Covered by technology wordings, and usually without the unintentional qualifier a general policy applies. Patents and trade secrets are the exception.
Dependent business interruption
An outage at a provider you rely on. It lives only in the cyber section, it is now common rather than rare, and the sub-limit, waiting period and systemic carve-out vary enormously.
Regulated firms
Some categories of FCA-authorised firm have indemnity requirements set by their regulator rather than by negotiation. It is not a blanket rule of authorisation.
The seams
What Isn’t Covered by Technology Company Insurance?
It will not pay to re-engineer your own product, it will not reach patents or trade secrets, and a third-party outage lands only in the cyber section. The sub-limits inside that section matter more than the headline limit.
Putting the product right
Neither section pays to re-engineer the software. The cost of the fix, and the revenue lost while your team does it instead of shipping, stay with you.
Patents and trade secrets
Every technology wording we read excluded them, which matters because contracts routinely make the intellectual property indemnity unlimited.
Somebody else infrastructure failing
Excluded by the professional indemnity section and outside the property trigger, so the cyber section is the only place it can land. Check the sub-limit and the waiting period, not just that the cover exists.
Fines, depending which section you read
One technology wording excludes regulatory fines outright while the cyber section of the same package pays them if the law allows. Assume the package is consistent and you will be wrong about one of them.
Sub-limits inside the cyber section
Extortion, network interruption and regulatory costs commonly sit well below the headline figure, which is not the number that answers.
Open source licence breach
The intellectual property cover may answer a claim, but what a copyleft licence holder usually wants is that you rip the code out. Remediation is not what these policies pay for.
Three questions separate two quotes far more than the price does. Does the professional indemnity section name breach of contract, service level agreements and liquidated damages as insured perils? Is there dependent business interruption cover, and does it survive a regional or global event? And what are the sub-limits on extortion, network interruption and regulatory costs? Our cyber insurance page covers the standalone version of that section.
Business types
What Kind of Technology Business Can Be Covered?
AI companies, software businesses, SaaS platforms, app and software developers, IT consultancies, cloud and managed service providers, data and analytics firms, fintech and cybersecurity companies.
AI companies
Building, fine-tuning or deploying models. UK insurers are writing affirmative AI wording rather than exclusions, which is the opposite of what most people expect.
Software companies
Licensed or bespoke software, where the claim almost always names a clause rather than an act of carelessness.
SaaS platforms
Subscription delivery, where uptime is contractual and the biggest interruption risk belongs to somebody else.
App and software developers
Building to someone else specification, carrying whatever the statement of work says you carry.
IT consultancies
Advising, specifying and implementing. The closest of the group to a general professional wording, and still not well served by one.
See professional indemnityCloud and managed service providers
Running other people infrastructure with the access that implies, which concentrates the exposure sharply.
Data and analytics businesses
Holding customer data at volume, where a breach reaches the people in the dataset as well as the regulator.
Fintech and cybersecurity
Regulated or security-critical, where the requirements come from a regulator or a customer with a very long checklist.
See cyber insuranceThe delivery model matters more than the label. A company that advises on systems and one that runs them are rated differently even where the letterhead is identical, because one of them holds the keys.
Who it’s for
Who Needs Technology Company Insurance?
UK technology companies with customers, contracts and usually employees: software and SaaS businesses, IT consultancies, cloud and managed service providers, data, fintech, cybersecurity and AI companies. It is written for companies rather than one-person freelancers.
Anyone selling under a customer contract
The moment you sign a master services agreement, the insurance clause in it decides what you have to hold.
Businesses holding customer data
Personal data turns an outage into a regulatory event and a claim from the people in the dataset.
Companies with employees
Employers liability becomes compulsory at the first hire who is not a majority shareholder or close family.
Platforms with uptime commitments
Where service levels are contractual, the claim arrives as breach of contract and needs a wording that names it.
Firms selling to regulated or public sector buyers
Those contracts carry the longest insurance clauses and the most carve-outs from the cap.
Teams putting models into production
Where output your customer relies on is generated rather than written, and the contract still holds you to it.
One exemption catches a lot of technology businesses and one trap catches more. A company whose only employee also owns half or more of the shares does not need employers liability, which describes plenty of one-founder companies right up until the first outside hire. The trap is the family-business exemption, which sounds like it helps and does not apply once the business is a limited company. Almost every technology business is. The rules are at employers liability insurance.
The difference that decides whether you are covered
Why a Software Claim Arrives as Breach of Contract
A technology professional indemnity wording names breach of contract, service level agreements and liquidated damages as insured perils. Software claims are overwhelmingly framed as a missed clause rather than as carelessness, so a policy whose trigger is negligence can be the one that does not respond.
| Technology wording | General wording | |
|---|---|---|
| What it is built around | Breach of contract, by name | Negligence, or sometimes a broader civil liability trigger |
| Service level agreements | Named as an insured peril | Not addressed |
| Liquidated damages | Insured, subject to how the figure was set | Not addressed |
| Your code opening a hole | A separate insuring clause for it | Unlikely to reach it |
| Data protection claims | Covered where you were processing | One major wording excludes them outright |
| IP infringement | Covered, usually without the unintentional test | Covered, usually only if unintentional |
One trap is set years before any claim. A technology wording we read only treats a sum as insured liquidated damages if, at the time it was agreed, it was a fair and reasonable estimate of the customer loss. A figure put in as commercial leverage rather than as a genuine forecast falls outside that. The facts are fixed when the contract is signed, but nobody tests them until a claim arrives, and a clause can be perfectly enforceable and still sit outside the policy definition. For how the general product is priced, see professional indemnity costs.
Pricing
How Much Does Technology Company Insurance Cost?
Nobody can price a technology company from the sector name. The rating follows turnover and revenue model, what you build and who buys it, how much customer data and system access you hold, the limits your contracts demand and your claims and incident history.
What the business is
- TurnoverAnd how much of it is recurring.
- What you sellLicence, subscription, days or hardware.
- HeadcountEmployed, contract and offshore.
- TerritoriesWhere your customers are, not where you are.
What you hold and touch
- Customer dataVolume, and how personal it is.
- System accessWhether you hold keys to customer estates.
- Uptime commitmentsService levels you have signed up to.
- Security postureControls, testing and certification.
The cover itself
- Indemnity limitsAs specified, contract by contract.
- Retroactive positionHow far back the cover reaches.
- Cyber sub-limitsThe numbers under the headline figure.
- Claims and incidentsFive years, including near misses.
No figure appears on this page. Nothing independent is published for UK technology premiums, so the numbers circulating are individual brokers summarising the customers they happen to write, and those skew heavily towards very small accounts. A company with enterprise contracts and a data estate bears no relation to that sample. Where this sits inside a packaged commercial combined policy, the schedule is where the real limits are written.
Before you start
What Do I Need for a Tech Insurance Quote?
Turnover and revenue model, headcount, where your customers are, what data and system access you hold, your security controls, the insurance clause from your biggest contract, and five years of claims and incidents.
About the business
- Three years of turnover and the revenue model
- Headcount, including contractors and offshore teams
- Where your customers are based
- Five years of claims, incidents and near misses
About what you handle
- Whether you hold personal data, and roughly how much
- Whether you have privileged access to customer systems
- Uptime or service level commitments you have signed
- Your security controls, testing and any certification
Limits and contracts
- The insurance clause from your largest customer contract
- How long you must maintain cover after it ends
- Any liability carve-outs above the cap
- Your current retroactive date, if you already hold cover
Compare with MyMoneyComparison.com
How to Compare Tech Insurance Quotes
Read the insuring clause before the limit, find the sub-limits inside the cyber section, and check the retroactive date. Two quotes at the same price can be worth very different amounts once those three are answered.
Read the insuring clause, not the headline limit
A professional indemnity section that names breach of contract is worth more than one with a bigger number and a negligence trigger.
Find the sub-limits under the cyber section
Extortion, network interruption and regulatory costs are where the real figures live, and they are often a fraction of the headline.
Check how far back the cover reaches
A policy starting today does nothing for work you delivered last year, and your contracts almost certainly require you to keep cover running for years after delivery.
Describe the business once and specialist UK brokers can come back to you. MyMoneyComparison.com is an introducer rather than a broker, so we do not sell the policy or recommend one. Our editorial policy sets out how we work.
Cutting costs
How Can I Reduce the Cost of Tech Insurance?
Evidence your security controls, describe the business precisely, push back on uncapped indemnities at contract stage and buy the limit your contracts actually require. Reviewing the excess helps too.
Evidence your security controls
Multi-factor authentication, backups you have actually restored from, and a tested incident plan. Cyber underwriters price this directly.
Negotiate the contracts you can
An uncapped indemnity you agreed to is an exposure no policy removes. Pushing back at contract stage is cheaper than insuring the consequence.
Describe the business precisely
A vague description gets rated for the worst thing it could mean. Splitting consultancy from managed services usually prices better.
Buy the limit the contracts need
Not the biggest one available, and not one below what your largest customer specified, because that is a deal you cannot close.
Keep the incident record straight
Underwriters would rather see a near miss you handled than discover it later. Undisclosed history is what hardens a renewal.
Review the excess
Absorbing the small first-party costs yourself, rather than claiming them, can take a visible amount off the premium.
If the company also has an office with staff and visitors, that side sits with office insurance.
Jargon buster
Tech Insurance Jargon, Explained
The words that appear on a technology schedule, in plain English. There is a longer general list in our insurance jargon buster.
- Technology professional indemnity
- A wording that insures breach of contract and service levels, not only negligence.
- Claims-made
- Cover answering claims made during the policy year, whatever year the work was done. Cyber first-party cover works differently.
- Retroactive date
- The point before which past work is not covered, however long you have held a policy.
- Run-off
- Cover kept running after a contract or the business ends, so late claims still land somewhere.
- Liquidated damages
- A sum fixed in the contract for a failure, insurable only if it was a genuine estimate of loss.
- Dependent business interruption
- Cover for an outage at a provider you rely on rather than at your own systems.
- Sub-limit
- A smaller cap sitting inside the headline limit, applying to one named cover.
- Uncapped indemnity
- A contractual promise carved out of the liability cap, so it has no ceiling.
Why MyMoneyComparison.com
Comparing Specialist Technology Cover
MyMoneyComparison.com is an FCA-authorised UK comparison service that introduces companies to specialist brokers. We do not sell insurance and we do not give advice: the broker you choose arranges the policy. Comparing is free and there is no obligation.
Form for the whole company
Describe the business, what it sells and the limits its contracts demand once, instead of repeating yourself to every broker in turn.
Advice given
We are an introducer, not a broker. We do not sell policies and we do not recommend one. Read our editorial policy.
Authorised and regulated
MyMoneyComparison.com Ltd appears on the FCA register under FRN 916241.
Comparing since
A UK company since 2013, working with specialist brokers across the country.
FAQs
Technology Company Insurance FAQs
The questions UK technology companies ask most.
What is technology company insurance?
What does technology company insurance cover?
Is general professional indemnity enough for a software company?
Are liquidated damages insurable?
What is an uncapped indemnity and why does it matter?
Does the policy cover patents?
Does my liability cap affect my insurance?
What happens if my cloud provider goes down?
Is dependent business interruption standard in cyber policies?
What about a global outage rather than one provider?
How large can a UK data protection fine be?
Is it really four per cent of global turnover?
Can a data protection fine be insured?
What about claims from the people whose data was exposed?
Does cyber insurance pay a ransom?
Has the UK banned ransom payments?
Is cyber incident reporting mandatory?
Does paying a ransom reduce a regulatory fine?
Is there a UK AI Act?
Are insurers excluding AI?
Is any of it a legal requirement?
What is the penalty for not having employers liability insurance?
How much does technology company insurance cost?
Ready when you are
Compare Tech Quotes
Tell us what the business builds, who buys it and the limits your contracts demand, and specialist UK brokers can come back with quotes. Free to use, with no obligation to buy.
- AI, software, SaaS, IT, cloud and data
- Professional indemnity and cyber
- FCA authorised and regulated
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About this page
This page sets out what technology company insurance is, what it reaches, where its seams are and what drives the price, for UK software, SaaS, IT, cloud, data, fintech and AI businesses with customers and contracts rather than one-person freelancers. It is general information and not advice. Wordings differ sharply in this sector, so read your own schedule and take the questions raised here to your broker. For the general product see professional indemnity insurance, for the standalone version of the cyber section see cyber insurance, and for the office itself see office insurance.
How we researched this page
- Two mainstream UK technology professional indemnity wordings, and one general professional indemnity wording to compare them against
- Two cyber wordings, for the extortion, dependent business interruption and regulatory cost positions and their sub-limits
- A published public sector call-off contract, for how liability caps and uncapped indemnities are actually drafted
- The UK data protection regulator published fining guidance, and its 2022 joint statement with the National Cyber Security Centre on ransom payments
- Health and Safety Executive guidance on compulsory employers liability insurance
No example premiums appear here, because we could find no UK body collecting and publishing pricing for this sector. Where wordings differ we say so rather than picking one and calling it the market. Four things in wide circulation are corrected on this page: that a general professional indemnity policy answers a software claim, that the data protection maximum for a normal business is a percentage of global turnover, that the UK has banned ransom payments, and that insurers are excluding artificial intelligence.
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