Software businesses pay around $45 monthly for insurance on average, with basic coverage starting from $23 to $36 per month.
Get matched with cheap software business insurance below.
Updated: October 24, 2025
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Software business insurance costs $274 to $429 annually on average, with variation across states and coverage types.
Your software company's insurance premiums vary based on your location, past claims, the types of software you develop and total employee count.
Shop multiple business insurers, bundle different policies, raise your deductibles and pay annually to lower your software business insurance expenses.
We found average business insurance costs for Software companies for commonly needed coverage are as follows:
| BOP | $30 | $363 |
| General Liability | $27 | $319 |
| Professional Liability (E&O) | $95 | $1,139 |
| Workers' Comp | $26 | $318 |
Note: We based these rates on small businesses with two employees across 79 major industries, focusing on four coverage types: general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates will vary based on your specific business factors and location.
Select your industry and state to get a customized quote.
Software business insurance cost for general liability insurance varies by state. Maine delivers the best value at $23 monthly, well below the $27 national average, while Hawaii reaches $33 monthly for the same protection.
| Alabama | $26 | $312 |
| Alaska | $28 | $338 |
| Arizona | $25 | $301 |
| Arkansas | $25 | $304 |
| California | $29 | $354 |
| Colorado | $26 | $315 |
| Connecticut | $29 | $345 |
| Delaware | $28 | $341 |
| Florida | $29 | $343 |
| Georgia | $27 | $322 |
| Hawaii | $33 | $390 |
| Idaho | $25 | $301 |
| Illinois | $29 | $348 |
| Indiana | $26 | $310 |
| Iowa | $25 | $302 |
| Kansas | $26 | $308 |
| Kentucky | $25 | $295 |
| Louisiana | $32 | $380 |
| Maine | $23 | $275 |
| Maryland | $25 | $303 |
| Massachusetts | $28 | $333 |
| Michigan | $25 | $301 |
| Minnesota | $25 | $298 |
| Mississippi | $27 | $319 |
| Missouri | $26 | $314 |
| Montana | $26 | $316 |
| Nebraska | $25 | $300 |
| Nevada | $30 | $360 |
| New Hampshire | $26 | $316 |
| New Jersey | $30 | $359 |
| New Mexico | $27 | $319 |
| New York | $31 | $367 |
| North Carolina | $23 | $275 |
| North Dakota | $23 | $276 |
| Ohio | $25 | $295 |
| Oklahoma | $26 | $308 |
| Oregon | $25 | $295 |
| Pennsylvania | $30 | $365 |
| Rhode Island | $29 | $349 |
| South Carolina | $27 | $327 |
| South Dakota | $25 | $297 |
| Tennessee | $26 | $310 |
| Texas | $27 | $320 |
| Utah | $25 | $303 |
| Vermont | $25 | $305 |
| Virginia | $24 | $289 |
| Washington | $30 | $361 |
| West Virginia | $28 | $333 |
| Wisconsin | $26 | $312 |
| Wyoming | $24 | $294 |
Note: We based these general liability rates on software businesses with two employees across different states. Your rates will vary based on your location, claims history and the types of services you provide.
Software businesses have different workers' compensation insurance rates depending on location. Maine has the most affordable coverage at $23 monthly, while New York reaches $31 monthly. State regulations and claim histories drive these pricing differences across the country.
| Alabama | $26 |
| Alaska | $24 |
| Arizona | $25 |
| Arkansas | $25 |
| California | $29 |
| Colorado | $26 |
| Connecticut | $29 |
| Delaware | $28 |
| Florida | $29 |
| Georgia | $27 |
| Hawaii | $28 |
| Idaho | $25 |
| Illinois | $29 |
| Indiana | $26 |
| Iowa | $25 |
| Kansas | $26 |
| Kentucky | $25 |
| Louisiana | $30 |
| Maine | $23 |
| Maryland | $25 |
| Massachusetts | $27 |
| Michigan | $25 |
| Minnesota | $25 |
| Mississippi | $27 |
| Missouri | $26 |
| Montana | $26 |
| Nebraska | $25 |
| Nevada | $30 |
| New Hampshire | $26 |
| New Jersey | $30 |
| New Mexico | $27 |
| New York | $31 |
| North Carolina | $23 |
| Oklahoma | $25 |
| Oregon | $25 |
| Pennsylvania | $30 |
| Rhode Island | $29 |
| South Carolina | $27 |
| South Dakota | $25 |
| Tennessee | $26 |
| Texas | $27 |
| Utah | $25 |
| Vermont | $25 |
| Virginia | $24 |
| West Virginia | $28 |
| Wisconsin | $26 |
Note: We based these workers' comp rates on software businesses with two employees across different states. Your workers' comp requirements and costs will vary by state since each has different regulations.
Your professional liability cost varies by location. Nationwide, businesses pay an average of $95 monthly for this coverage. Maine offers the most affordable rates at $82 monthly, while Washington commands the highest premiums at $110 monthly.
| Alabama | $94 |
| Alaska | $84 |
| Arizona | $90 |
| Arkansas | $92 |
| California | $105 |
| Colorado | $96 |
| Connecticut | $102 |
| Delaware | $103 |
| Florida | $104 |
| Georgia | $99 |
| Hawaii | $95 |
| Idaho | $90 |
| Illinois | $105 |
| Indiana | $94 |
| Iowa | $91 |
| Kansas | $92 |
| Kentucky | $87 |
| Louisiana | $105 |
| Maine | $82 |
| Maryland | $91 |
| Massachusetts | $100 |
| Michigan | $88 |
| Minnesota | $90 |
| Mississippi | $94 |
| Missouri | $92 |
| Montana | $95 |
| Nebraska | $89 |
| Nevada | $106 |
| New Hampshire | $94 |
| New Jersey | $109 |
| New Mexico | $96 |
| New York | $108 |
| North Carolina | $82 |
| North Dakota | $83 |
| Ohio | $88 |
| Oklahoma | $88 |
| Oregon | $88 |
| Pennsylvania | $108 |
| Rhode Island | $105 |
| South Carolina | $99 |
| South Dakota | $88 |
| Tennessee | $93 |
| Texas | $97 |
| Utah | $91 |
| Vermont | $91 |
| Virginia | $88 |
| Washington | $110 |
| West Virginia | $99 |
| Wisconsin | $93 |
| Wyoming | $87 |
Note: We based these professional liability rates on software businesses with two employees across different states. Your actual rates will depend on your services offered and location.
Software business insurance costs vary based on your state, with business owner's policy coverage showing the widest range. You'll find BOP insurance cost differences from $26 in North Dakota to $36 in New York for the same coverage level.
| Alabama | $30 |
| Alaska | $28 |
| Arizona | $29 |
| Arkansas | $29 |
| California | $34 |
| Colorado | $30 |
| Connecticut | $33 |
| Delaware | $32 |
| Florida | $33 |
| Georgia | $31 |
| Hawaii | $33 |
| Idaho | $29 |
| Illinois | $34 |
| Indiana | $30 |
| Iowa | $29 |
| Kansas | $29 |
| Kentucky | $28 |
| Louisiana | $34 |
| Maine | $26 |
| Maryland | $29 |
| Massachusetts | $31 |
| Michigan | $29 |
| Minnesota | $29 |
| Mississippi | $31 |
| Missouri | $30 |
| Montana | $30 |
| Nebraska | $29 |
| Nevada | $35 |
| New Hampshire | $29 |
| New Jersey | $34 |
| New Mexico | $30 |
| New York | $36 |
| North Carolina | $26 |
| North Dakota | $26 |
| Ohio | $28 |
| Oklahoma | $29 |
| Oregon | $28 |
| Pennsylvania | $35 |
| Rhode Island | $33 |
| South Carolina | $31 |
| South Dakota | $28 |
| Tennessee | $30 |
| Texas | $31 |
| Utah | $28 |
| Vermont | $29 |
| Virginia | $27 |
| Washington | $34 |
| West Virginia | $31 |
| Wisconsin | $30 |
| Wyoming | $28 |
Note: We based these BOP rates on software businesses with two employees across different states. Your actual rates will vary based on your business size, location, and coverage needs.
Software business insurance costs vary by provider, ranging from $37 to $60 per month. These price differences reflect each insurer's specific market focus and risk appetite, which shifts over time based on profitability and coverage expansion opportunities.
| Chubb | $51 | $611 |
| Coverdash | $52 | $621 |
| Hiscox | $43 | $519 |
| NEXT Insurance | $38 | $459 |
| Nationwide | $46 | $549 |
| Progressive Commercial | $42 | $501 |
| Simply Business | $39 | $469 |
| The Hartford | $37 | $443 |
| Thimble | $60 | $726 |
| biBERK | $41 | $494 |
Software business insurance costs depend on multiple factors insurers review when determining your policy rates:
Data privacy laws and regulatory requirements shift dramatically by jurisdiction. Companies operating in states with strict privacy regulations like California or serving international markets face different compliance burdens that influence insurance pricing.
Data breaches and software failures trigger expensive professional liability claims. Previous incidents involving compromised customer data, service outages or IP disputes continue affecting your premiums long after technical issues are resolved.
Building internal productivity tools carries minimal risk compared to customer-facing platforms. Companies developing healthcare software, financial systems or products handling sensitive data face substantially higher cyber and errors-and-omissions exposure.
Tech workers face relatively low physical injury risks, keeping workers' comp costs modest. However, employment practices liability becomes more relevant as headcount grows, particularly around wrongful termination and discrimination claims.
SaaS products with subscription models present different exposures than custom development work. Companies offering consulting, implementation services or managing client infrastructure assume broader responsibility that requires enhanced professional liability coverage.
Customer base and transaction volume signal your data exposure to insurers. Bootstrapped startups with 500 users and $200,000 in revenue face entirely different underwriting than growth-stage companies serving 50,000 customers at $5 million annually.
Cyber insurance and tech errors-and-omissions policies protect against data breaches and software failures. Most companies start with $1 million in coverage, though enterprise clients often demand $5-10 million in limits before signing contracts.
Security certifications like SOC 2 and compliance with industry standards demonstrate risk management maturity. Companies with documented security programs, regular audits and incident response plans qualify for better cyber insurance rates than those without formal protocols.
Reducing software business insurance costs calls for targeted comparison shopping and consistent risk management. Our step-by-step guide lays out practical steps to secure cheap business insurance for your software business and improve your long-term risk profile.
Software companies need professional liability (E&O) for code errors, bugs, and missed deadlines, causing client losses, cyber liability for data breaches and ransomware attacks, and general liability for basic business operations.
Add intellectual property coverage for copyright infringement claims, media liability if you create content, employment practices liability for wrongful termination and business interruption for revenue loss during system outages or cyber incidents.
Software insurance costs vary based on whether you're SaaS, enterprise software, mobile apps, or consulting. Tech-focused insurers understand software development risks, service level agreements, and intellectual property disputes better than general carriers.
Combining professional liability, cyber insurance, and general liability saves 16% to 24% compared to purchasing separately. Many insurers offer tech company packages that include intellectual property and media liability at reduced bundle rates.
Higher E&O deductibles of $5,000 to $25,000 can reduce premiums by 22% to 35%, but consider your largest contract values and claim history. Keep cyber liability deductibles moderate since breach response costs, forensics, notification and credit monitoring, accumulate quickly even before lawsuits materialize.
Monthly installment plans add 5% to 11% in processing fees, which, on a $12,000 tech policy, costs $600 to $1,320 extra annually. Paying upfront removes these charges and earns 6% to 9% discounts from technology carriers.
Review your policy whenever you hire developers, launch new products, or increase your user base and revenue. If you've implemented security certifications like SOC 2, enhanced testing protocols or improved incident response plans, these improvements can qualify for premium discounts.
Monthly software business insurance premiums range from $23 to $36, with location, claims history and business size influencing your actual cost. To find the most affordable coverage, compare insurers, bundle policies, raise deductibles and consider paying your policy annually.
Software business owners commonly ask about insurance costs. We answered the most frequent questions below:
Workers' compensation is the most affordable at $26 monthly, though it only covers workplace injuries. Most software companies require general liability insurance ($27 monthly) for protection against third-party lawsuits and property damage.
You'll pay more in these states. General liability in California runs $29 monthly (vs. $27 national average), and BOP costs $34 monthly (vs. $30 average). New York is similar at $31 and $36, respectively.
Bundling your software business insurance policies delivers greater savings compared to purchasing individual coverage. Insurance carriers provide discounts when you package general liability, commercial property and commercial auto insurance together with a single provider.
Higher premiums result from factors like handling sensitive client data, cyber security vulnerabilities, potential intellectual property disputes, errors and omissions exposure, and storing valuable digital assets.
A $500 deductible means lower out-of-pocket costs per claim but higher monthly premiums. Consider your business's financial capacity and claim frequency expectations when deciding.
Workers' compensation costs for software businesses vary by state, spanning from $23 monthly in Maine to $31 monthly in New York for location-based planning.
Yes, BOP insurance is worth it for software companies. BOP costs $30 monthly and packages general liability, commercial property, and business interruption coverage together. This bundled approach saves money compared to purchasing individual policies while offering unmatched convenience for software businesses.
Shop annually when your policy renews. Compare quotes from three or more insurers to find savings, especially after adding staff or expanding your service offerings.
We collected software business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
We used a typical small software business profile requiring comprehensive coverage. We chose companies offering broad national coverage and online quote capabilities, prioritizing insurers that serve the software industry.
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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
