The Hartford earned our top spot for the best small business insurer for software companies due to its affordability and coverage. However, we recommend comparing quotes from our other top picks, including NEXT, Simply Business and biBerk.
Best Software Business Insurance
Updated: July 7, 2025
Advertising & Editorial Disclosure
Key Takeaways
The Hartford is the best business insurance company for software firms because it offers the greatest balance of affordability and coverage.
The cheapest overall commercial insurance provider for software businesses for professional liability and BOP is The Hartford, with low monthly rates.
To shop for business insurance for your software business, assess the risks in your industry, consult agents and other similar organizations and compare multiple options.
Best Business Insurance for Software Companies
| The Hartford | 96 | 98 | 91 |
| NEXT Insurance | 95 | 96 | 94 |
| Simply Business | 93 | 95 | 83 |
| biBERK | 91 | 93 | 91 |
| Nationwide | 89 | 86 | 91 |
| Progressive Commercial | 88 | 92 | 81 |
| Hiscox | 88 | 89 | 87 |
| Thimble | 86 | 87 | 81 |
| Chubb | 85 | 80 | 87 |
| Coverdash | 85 | 80 | 83 |
*All scores were based on a software business with two employees across professional liability, general liability, workers' comp and BOP policies.
1. The Hartford
pros
Lowest professional liability rates
Most affordable BOP coverage
Financially stable (A+ AM Best)
cons
Fewer digital features than competitors
COMPANY HIGHLIGHTS
The Hartford is the best overall provider for software businesses, especially those looking for strong professional liability coverage at a great price. At just $85 per month, it offers the lowest professional liability premiums in our study. It also leads in BOP pricing at $21 per month, giving software firms bundled protection for liability and property. Backed by an A+ rating from AM Best, The Hartford is a reliable pick for developers, SaaS providers, and IT consultants who prioritize long-term protection. While the quoting process is more traditional, its underwriting experience makes it ideal for complex risks.
2. NEXT
pros
Strong digital experience
Great customer satisfaction score
Competitive rates across policies
cons
Slightly higher pro liability than top competitor
COMPANY HIGHLIGHTS
NEXT is ideal for tech founders and software developers who want fast, online-first coverage. It offers general liability and workers’ comp at just $17 and $13 per month, respectively, making it one of the most affordable all-around providers. It also ranks high for professional liability at $88 per month and is especially useful for startups and remote teams that value simplicity. With a 4.7-star average review score, NEXT is a favorite among small tech businesses that want convenience without cutting corners. Its policies are easy to manage digitally, which aligns well with software culture.
3. Simply Business
pros
Cheapest general liability insurance
Access to multiple carriers
Easy quoting and comparisons
cons
Customer service varies by insurer
COMPANY HIGHLIGHTS
Simply Business is a strong option for small or early-stage software companies, especially those seeking to compare pricing from multiple carriers. It offers the lowest general liability insurance at $14 per month, making it a solid entry point for independent developers and tech consultants. Its BOP is also priced competitively at $22 per month. Because Simply Business is a broker, users get flexible policy options depending on their niche or platform. Just keep in mind that support and claims handling depend on which carrier you choose through the platform.
Cheapest Business Insurance for Software Firms
Based on our study of business insurance pricing, Simply Business offers the cheapest overall commercial insurance for software companies for general liability. However, this applies only to software companies with two employees, and you may find lower rates elsewhere. Below are the most affordable providers by major coverage types.
Cheapest General Liability Insurance for Software Companies
With an average monthly rate of $14, Simply Business offers the lowest-cost general liability insurance for software companies. Even so, consider getting quotes from the next-most-affordable insurers: The Hartford and biBerk.
| Simply Business | $14 | $173 |
| The Hartford | $16 | $198 |
| biBERK | $17 | $201 |
| NEXT Insurance | $17 | $200 |
| Nationwide | $20 | $240 |
| Progressive Commercial | $20 | $238 |
| Hiscox | $21 | $247 |
| Chubb | $24 | $293 |
| Thimble | $24 | $294 |
| Coverdash | $34 | $406 |
Cheapest Workers' Comp Insurance for Software Companies
For software businesses shopping for workers' comp insurance, Thimble tops our list as the most affordable insurer, with average rates of $11 per month or $136 yearly. However, you may find more affordable rates with Progressive Commercial, Hiscox, biBerk and NEXT.
| Thimble | $11 | $136 |
| Progressive Commercial | $12 | $146 |
| biBERK | $13 | $160 |
| Coverdash | $13 | $155 |
| Hiscox | $13 | $152 |
| NEXT Insurance | $13 | $158 |
| Simply Business | $13 | $151 |
| The Hartford | $13 | $154 |
| Nationwide | $14 | $170 |
| Chubb | $15 | $183 |
Cheapest Professional Liability Insurance for Software Companies
The Hartford offers the most affordable professional liability insurance options for software companies, with low average monthly rates of $85. You may also want to compare prices from other low-cost providers like NEXT, Progressive Commercial and Thimble.
| The Hartford | $85 | $1,019 |
| NEXT Insurance | $88 | $1,051 |
| Progressive Commercial | $90 | $1,085 |
| Thimble | $92 | $1,104 |
| Hiscox | $94 | $1,129 |
| Simply Business | $94 | $1,127 |
| Coverdash | $96 | $1,150 |
| biBERK | $98 | $1,179 |
| Nationwide | $103 | $1,232 |
| Chubb | $111 | $1,332 |
Cheapest BOP Insurance for Software Companies
The Hartford provides the most affordable business owner's policy (BOP) coverage for software companies, with an average yearly cost of $250 for bundled general liability and property protection. That’s a savings of roughly $9 annually compared to Simply Business, the second most affordable option.
| The Hartford | $21 | $250 |
| biBERK | $22 | $260 |
| Simply Business | $22 | $259 |
| NEXT Insurance | $24 | $292 |
| Nationwide | $30 | $362 |
| Progressive Commercial | $30 | $358 |
| Hiscox | $31 | $370 |
| Chubb | $36 | $437 |
| Thimble | $38 | $456 |
| Coverdash | $49 | $590 |
What Type of Coverage Do You Need for a Software Business?
Most companies with employees are legally required to carry workers' comp insurance, and businesses that use vehicles must have commercial auto coverage. Many clients or contracts also require businesses to carry general liability insurance before starting work. A surety bond may also be necessary in certain industries, especially when contracts require guarantees of service or compliance.
RECOMMENDED SOFTWARE BUSINESS COVERAGE
General liability insurance is strongly recommended for software companies because it covers common risks like bodily injury, property damage, and legal defense costs. Professional liability insurance is also a smart option for businesses that work under client contracts or provide specialized services. It becomes especially useful for companies offering specialized services or handling large contracts where the risk of disputes is higher.
Coverage Recommendations by Software Company Type
We've broken down risk considerations and coverage recommendations by software business type, ordered from highest to lowest risk for claims frequency. Businesses with higher risk exposure should consider broader coverage options to ensure adequate protection.
Software Company Type | Coverage Types Recommendation | Most Common Insurance Claims | Most Common Reasons For Litigation |
|---|---|---|---|
SaaS Platforms Handling User Data | Professional Liability (high limits), Cyber Liability (high limits), General Liability, BOP, EPLI, Tech E&O | Data breaches, downtime-related losses, service errors, copyright infringement | Client lawsuits over lost revenue, security failures, SLAs, user privacy violations |
Custom Software Development Firms | Professional Liability, General Liability, BOP, Workers’ Comp, Tech E&O, Commercial Auto (if visiting clients) | Bugs causing client losses, missed deadlines, third-party code issues | Breach of contract, IP disputes, negligence, scope creep conflicts |
Managed IT & Software Support Providers | General Liability, Professional Liability, Cyber Liability, Workers’ Comp, BOP | Hardware damage during service, data loss, misconfigured networks, employee injuries | Service disruption lawsuits, liability for system failures, physical damage or access-related issues |
App Developers (Freelance or Small Studio) | Professional Liability, Cyber Liability, General Liability, Business Personal Property | App failure, user complaints, ad network disputes, hardware theft | Lawsuits from clients or users, store policy violations, revenue loss claims |
Software Consultants or API Integrators | Professional Liability, General Liability, Cyber Liability, Tools & Equipment, Tech E&O | Faulty recommendations, poor implementation, platform incompatibility | Client claims over failed integrations, misadvice, contractual disputes |
Solo Software Engineers (Remote/Freelance) | Professional Liability, General Liability (basic), Cyber Liability (optional), BPP | Missed milestones, communication gaps, delivery delays, laptop/equipment issues | Contract breaches, failure to meet expectations, ghosting or unavailability claims |
How to Get the Best Cheap Business Insurance for Your Software Company
Here's a step-by-step method for finding the best and cheapest business insurance for your software company.
- 1
Decide on coverage needs before buying
Consider risks specific to your business for claims, get advice from similar businesses, talk to agents and research the types of business insurance. This will give you a balanced perspective on your coverage needs and prevent you from being convinced to get excessive coverage.
- 2
Research costs
To ensure you get the best deal, research average costs for your business profile and determine which providers offer the cheapest rates overall. This will give you a measuring stick for how much you're saving when comparing quotes and which companies to start with.
- 3
Look into company reputations and coverage options
To further narrow your list, research what customers say on online rating sites and forums to get a more comprehensive look at company services. Also, to align with your coverage needs and future ones, research coverage options to ensure you're covered for the right items.
- 4
Compare multiple quotes through different means
The tried-and-true method for finding the best deal is to compare multiple quotes for apples-to-apples coverage. Pricing differs by your comparison method, whether with captive agents, comparison sites, company websites or independent agents.
- 5
Reassess annually
Your business situation will change, influencing your rates and coverage needs. Repeat these steps annually to ensure you still have the best deal.
How to Decrease Your Software Business's Liability Risk
Minimizing risk is key to keeping your software business thriving and your insurance costs low. We've organized effective risk mitigation strategies by risk level to help you manage liability and reduce expenses.
Software Business Risk Type | Included Types of Software Businesses | Risk Mitigation Tactics |
|---|---|---|
Highest | SaaS platforms, data-centric software firms, managed IT providers | Use encrypted cloud infrastructure and regularly audit for vulnerabilities. Require clients to sign service-level agreements with disclaimers for outages or third-party breaches. Maintain high-limit cyber and E&O policies. Train staff in data handling, access control, and security protocols. |
Moderately High | Custom software developers, app studios, API integration firms | Require formal change-order documentation for all project adjustments. Use source code versioning and testing documentation. Clearly outline scope, timeline, and liability limits in contracts. Carry professional liability and Tech E&O insurance. |
Moderate | Software consultants, system integrators, white-label development firms | Deliver written recommendations and disclaimers with all services. Use contracts with indemnification and arbitration clauses. Secure client credentials in password vaults. Regularly back up integration logs and implementation plans. |
Moderately Low | Freelance app developers, independent engineers, small tool vendors | Use version-controlled deployment logs and track client approvals. Clarify delivery terms and maintenance responsibilities in contracts. Maintain liability coverage even for part-time or open-source work. |
Lowest | Solo engineers or consultants working remotely or on short-term gigs | Always use engagement letters or lightweight contracts. Store all code and deliverables in cloud repositories with audit trails. Secure laptops and hardware with physical and digital safeguards. Use cyber liability as added protection even if risk seems low. |
Best Insurance for Software Business: Bottom Line
The Hartford is the best insurer for software business insurance, while it also offers the cheapest professional liability and BOP coverage. We also recommend getting quotes from NEXT and Simply Business. For the best deal, talk to agents, research providers and pricing, and compare multiple quotes side by side.
Software Business Insurance: FAQ
This section addresses frequently asked questions about business insurance tailored for software companies.
Who offers the best software business insurance overall?
The Hartford offers the best business insurance for software companies, excelling in customer service and achieving an impressive MoneyGeek score of 96 out of 100. NEXT Insurance follows closely with a score of 95.
Who has the cheapest business insurance for software companies?
Here are the cheapest business insurance companies for software businesses by coverage type:
- Cheapest general liability insurance: Simply Business at $14 per month
- Cheapest workers' comp insurance: Thimble at $11 per month
- Cheapest professional liability insurance: The Hartford at $85 per month
- Cheapest BOP insurance: The Hartford at $21 per month
What business insurance is required for software organizations?
Workers' compensation insurance (if you have employees) and commercial auto insurance (if you own business vehicles) are legally required for software businesses and vary by state. Although not mandated by law, most commercial clients and property leases necessitate general liability insurance and surety bonds.
How much does software business insurance cost?
Business insurance costs for software companies vary depending on your products, team size, and risk profile. For two-person teams, here are the average monthly premiums by coverage type:
- General liability: $21 per month
- Workers comp: $13 per month
- Professional liability: $95 per month
- BOP insurance: $30 per month
How We Chose the Best Software Business Insurance
We selected the best business insurer for software companies based on the following criteria:
- Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better it performs.
- Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
- Coverage (15% of score): We scored business insurance for this category based on the flexibility, payment and actual coverage options.
- Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely a company is to pay out claims compared to the competition.
All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:
- Three-person business with two employees
- Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
- $150,000 in payroll
- $300,000 annual revenue
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- AM Best. "Hartford Fire Insurance Company." Accessed June 16, 2025.
- NEXT. "Customer Reviews." Accessed June 16, 2025.