App Developer Insurance
Smartphone / Mobile Phone / Tablet Application Development
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How much does app developer insurance cost?

Small business owners can save money on commercial insurance by comparing quotes from different providers with Insureon. Mobile app insurance costs depend on the type of policy, coverage limits, deductibles, and factors such as your business's location and number of employees.

Top app developer insurance policies and their cost

Here are the top insurance policies purchased by mobile app developers and their average monthly costs:

Our figures are sourced from the median cost of policies for app developers who apply for quotes with Insureon. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.

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Technology errors and omissions insurance

App developers pay an average of $68 per month, or $810 annually, for tech E&O insurance. This policy bundles errors and omissions insurance with cyber insurance at a lower cost than buying the policies separately.

Errors and omissions insurance, also known as professional liability insurance, provides financial protection against claims of professional negligence. For example, a newly released Android or Apple app might cause a customer's smartphone to crash and lose important data, which could result in a lawsuit.

Tech E&O adds third-party cyber insurance to this coverage, which extends protection in case a vulnerability in your app leads to a data breach or cyberattack at a client's business.

This is the average E&O insurance for app developers who buy from Insureon:

Insurance premium: $68 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $2,500

The cost of errors and omissions insurance depends on factors such as the coverage limits you choose, the size of your business, and the type of apps you work on.

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Cyber insurance

App developers pay an average of $170 per month, or $2,041 per year, for cyber insurance. This policy is vital for app development startups that store personal information, such as customers' credit card numbers, Social Security numbers, or email addresses.

Cyber insurance covers the cost of complying with your state's data breach laws after a cyber incident. It can pay for legal fees, customer notification costs, and other expenses related to a data breach or cyberattack. You may also see this policy referred to as cyber liability insurance or cybersecurity insurance.

The cost of cyber insurance primarily depends on the amount of personal information handled by your app company.

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General liability insurance

App developers pay an average of $29 per month, or $350 per year, for general liability insurance.

This policy helps pay for legal defense costs from accidents that damage a client's property or cause a bodily injury. It also covers lawsuits related to slander and libel, such as a claim that an employee at your app development agency made a derogatory statement about a competitor on social media.

This is the average general liability insurance policy for developers who buy from Insureon:

Premium: $29 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Insureon’s licensed agents typically recommend a business owner’s policy (BOP), which combines general liability insurance with commercial property insurance at a discount to protect your computers and other business property.

For app developers, the average premium for a business owner's policy is $46 per month or $550 per year. You can also add business interruption insurance to protect against financial losses from a forced closure due to a fire or storm.

The cost of general liability insurance depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic, and any subcontractors or additional insured endorsements. Learn more about how your premium is calculated.

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Fidelity bonds

The average cost of a fidelity bond is $110 per month for app developers, or $1,316 annually. Some clients, especially in the financial services industry, may require a bond before they will work with your app development business.

Fidelity bonds reimburse your client if one of your employees commits fraud, theft, or forgery, including illegal electronic funds transfer. This amount must be paid back to the company that issued the bond.

The cost of a fidelity bond is typically a small percentage of the bond amount.

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Workers' compensation insurance

App developers pay an average of $32 per month or $386 annually for workers' compensation insurance. This policy covers medical expenses and disability benefits when you or an employee suffers a work-related injury or illness.

App development companies that have employees typically must purchase workers' comp to comply with state requirements and avoid penalties. It's also recommended for sole proprietors, as health insurance plans can deny claims for injuries related to your job.

Most policies include employer's liability insurance, which covers the cost of lawsuits related to workplace injuries.

The cost of workers' comp depends on several factors, primarily the number of employees and their occupational risks.

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Commercial auto insurance

Small tech companies pay an average of $198 per month, or $2,375 per year, for commercial auto insurance. This policy can pay for property damage and medical bills in an accident involving your company vehicle. It can also cover vehicle theft, vandalism, and weather damage.

Most states require this type of insurance for vehicles owned by an app development business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial car insurance depends on several factors, including the policy limits you choose, coverage options, the number and value of your vehicles, and the driving records of anyone permitted to drive.

How do I get affordable app developer business insurance?

Insureon can help mobile app developers, web developers, and software engineers find affordable insurance coverage in three easy steps:

  1. Fill out a free online application with details about your business.
  2. Compare custom quotes from top-rated U.S. insurance providers.
  3. Select a policy and pay the premium to begin coverage.

You can consult a licensed insurance agent for questions about your risks, state insurance requirements, and the best coverage for your business needs. Once you've bought a policy, you can download a certificate of insurance for proof of coverage. Most small business owners can get insured within 24 hours of applying for quotes.

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Updated: October 18, 2023
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