You Get Sued for What the Code Does, Not for Anyone Getting Hurt.
Protecting developers, agencies, and their clients
Web and app development firms design, build, integrate, and often host or maintain software for clients — websites, mobile apps, custom platforms, and integrations. The defining feature of the risk is that the work product is code, so a claim almost never involves bodily injury; it involves money. A defective build, a missed launch, a security hole, or a system that goes down costs the client real revenue, and they sue for that financial loss. That is a professional and cyber exposure a general liability policy is built to exclude. A development firm needs coverage built around technology E&O, cyber and data breach, and intellectual property. This is a corner of professional insurance built for how developers actually get sued.
Properly structured coverage protects the firm, its principals, and its clients.
The Developer's Signature Exposures
The defining exposure is technology errors and omissions — professional liability for the software itself. When code is defective, a project blows its deadline or budget, a feature doesn't perform as promised, or a system fails in production and the client loses sales or data, the resulting claim is for pure economic loss, which general liability specifically excludes. Cyber and data-breach exposure sits right beside it, because the firm builds, holds, and often hosts systems containing client and end-user data, so a breach or a vulnerability the firm introduced becomes the firm's liability. Around that sit intellectual-property infringement over code, libraries, and design elements, and contractual liability from the indemnity and performance terms clients demand.
Key Risks in Web & App Development Operations
Development firms face exposure related to:
Defective code or a system failure that costs the client revenue
A missed launch date or blown budget on a fixed-scope project
Software that doesn't perform as the contract promised
A security vulnerability in the delivered product leading to a breach
A breach of client or end-user data the firm hosts or holds
Alleged infringement of copyrighted code, a library, or a design
An indemnity clause pulling the firm into a client's loss
Getting sued for what the code does, not for injury, is what most defines the firm.
Core Coverages for Web & App Development Firms
A properly built development program typically includes:
Technology Errors & Omissions (Professional Liability) — Covers claims that the work was defective, late, or failed to perform — the core financial-loss exposure GL excludes, often combined with tech coverage in one form.
Cyber Liability — Covers breach response, data restoration, and third-party liability when systems the firm builds or hosts are compromised.
Media / IP Liability — Covers infringement and advertising-injury claims over code, content, and design, frequently bundled into tech E&O.
General Liability — Covers ordinary third-party injury and property damage, and satisfies client and lease requirements.
Business Owner's Policy / Property — Covers equipment and office contents and business interruption.
Workers' Comp & EPLI — Cover employees and employment-practices claims in a growing team.
Umbrella / Excess Liability — Adds limits over the primary lines for large-client contracts.
What's Commonly Overlooked
Development programs are most often weakened by:
Carrying only general liability, which excludes the software-error claim entirely
Separating tech E&O and cyber so a single incident falls between them
No media or IP coverage for code and design infringement
Signing client indemnity clauses the policy doesn't back
Hosting client systems with no first-party cyber for the outage
The gaps that hurt most are missing tech E&O and a split between E&O and cyber.
Real-World Claim Examples
A delivered app has a defect that crashes checkout, and the client loses sales
A fixed-bid project misses its launch and the client sues over the lost season
A security flaw the firm introduced leads to a breach of end-user data
A client alleges the firm reused licensed or infringing code
An indemnity clause pulls the firm into the client's downstream claim
Any one of these can be significant, and the software-failure and breach claims are the most distinctive.
Regulatory & Licensing Context
Software development generally requires no occupational license, so the governing framework is contractual and data-driven rather than regulatory. Client master-services agreements and statements of work set performance standards, indemnity, limitation-of-liability, and insurance requirements — commonly minimum tech E&O and cyber limits with the client named as additional insured. Where the firm builds systems that touch regulated data, obligations such as HIPAA, PCI-DSS, and state and international privacy laws flow through to the developer by contract, and IP ownership and open-source-license terms govern the code itself.
Why Proper Placement Matters
Underwriters weigh the services offered — hosting and ongoing maintenance raise exposure over pure build-and-hand-off — client size and industry, contract and indemnity practices, use of engagement terms and limitation-of-liability clauses, revenue, and claims history. Technology risks are written on combined tech-E&O-and-cyber forms through specialty programs that understand software, and placing the two together on one form avoids the gap where an incident is both an error and a breach. Matching limits to the largest client contract and confirming media and IP coverage are the essential steps.
Our Approach
At Cory Washington & Co., we insure web and app developers around the code and the data — placing technology E&O and cyber together so a software failure and the breach it causes are covered by one program, adding media and IP coverage, and sizing limits to the contracts you actually sign. We review your client agreements so the indemnity you accept is backed by the policy. We also insure related businesses, including graphic designers, IT service providers, and technology companies.
You get sued for what the code does, not for anyone getting hurt, which makes a development firm a distinct risk — we build the coverage to match it, tech E&O and cyber together.
All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.
Frequently Asked Questions
How do I get web & app development insurance through Cory Washington & Co.?
Request a quote or contact our team. We start with a short conversation about your operations, analyze your exposures, then negotiate web & app development insurance across multiple carriers that compete for your account and present options with the trade-offs explained. Cory Washington & Co. LLC is licensed in all 50 states.
How are web & app development insurance premiums priced?
There is no flat rate. The cost of web & app development insurance reflects your industry, your size (payroll and revenue), your claims history, and the limits and deductibles you choose. We market your account to multiple carriers, compare the real quotes side by side, and explain what is driving each number so you can weigh coverage against price with confidence.
Is web & app development insurance mandatory?
Requirements vary. Web & app development insurance may be mandated by statute, or required under your contracts, leases, or loan agreements — and in many cases it is simply prudent given the risks involved. We look at your specific obligations and exposures, then recommend the coverage and limits that fit.
What if another agency has already declined or non-renewed my coverage?
Difficult, specialty, and previously-declined placements are a core part of our work. We access excess & surplus (E&S) and specialty markets that many generalist agencies cannot, and we explain the trade-offs clearly so you can decide with confidence.
Available in all 50 states. See how requirements differ in California, Texas, Florida, New York, or choose your state.