Web Developer Professional Indemnity Insurance

Premiums typically range from $500 to $5,000 per year for freelancers and small agencies depending on revenue, services offered and claims history. A freelance developer earning under $200,000 can often secure $1 million in cover for under $1,500 per year. Request a free quote through Shielded for pricing specific to your business.

Most PI policies cover third-party claims arising from a data breach caused by a security vulnerability in your code. However, first-party costs such as forensic investigation, customer notification and credit monitoring may require a separate cyber liability extension. If you handle sensitive data, discuss cyber cover options with your broker.

Yes. If a coding error or bug you introduced causes website downtime and your client suffers financial loss as a result, the claim would typically be covered under a PI policy. This includes lost revenue, recovery costs and any consequential losses flowing from the downtime.

Yes. Claims arising from disputes about whether the delivered website or application meets the agreed functional specifications are a core coverage area of web developer PI insurance. This includes claims for the cost of remedial work, alternative developer costs and any financial loss caused by the alleged shortfall.

Most freelance web developers carry between $1 million and $2 million in PI cover. Small to mid-sized agencies typically carry $2 million to $5 million. The appropriate limit depends on your project values, client requirements and the nature of the systems you build. Enterprise and e-commerce developers should consider higher limits.

Yes. Most IT and technology PI policies cover web development, mobile app development, software engineering and related digital services under a single policy. Ensure your policy wording explicitly lists all the services you provide to avoid coverage gaps.

PI insurance typically covers claims alleging intellectual property infringement in your delivered work, including claims arising from the use of open-source or third-party code components. However, deliberate infringement or knowing violation of licence terms may be excluded. Maintaining compliance with open-source licences is important for both coverage and risk management.

Professional indemnity (PI) insurance protects professionals and businesses against claims arising from negligent acts, errors, omissions or breaches of professional duty in the provision of services or advice. It covers legal defence costs, settlements and damages awarded against you. PI insurance operates on a claims-made basis, meaning the policy in force when the claim is made responds – not the policy in force when the work was performed.

Any professional who provides advice, designs, recommendations or services to clients should carry PI insurance. This includes accountants, architects, engineers, lawyers, financial planners, mortgage brokers, IT consultants, real estate agents, builders, health practitioners, management consultants and many more. For many professions, PI insurance is mandatory under Australian legislation or industry body requirements.

PI insurance premiums depend on your profession, annual revenue or fee income, claims history, limit of indemnity required and the scope of services you provide. A sole practitioner consultant might pay $500 to $2,000 per year for $1M cover, while a mid-size engineering or accounting firm could pay $5,000 to $20,000+ for $5M to $10M cover. High-risk professions like financial planning or building design attract higher premiums.

PI insurance typically covers legal defence costs (solicitors, barristers, court fees), damages or settlements awarded to the claimant, investigation costs from regulatory bodies, breach of professional duty, negligent acts or omissions, unintentional breach of confidentiality, loss or damage to client documents, and defamation arising from professional activities. Cover extends to past work through retroactive dates.

Yes, for many regulated professions in Australia. Mandatory PI insurance requirements apply to solicitors, financial advisers (AFSL holders), mortgage brokers, accountants (registered tax agents), architects, building practitioners in most states, real estate agents, migration agents, customs brokers, and various health practitioners. Requirements vary by state and professional body – check your specific obligations.

Professional indemnity covers financial loss caused by your professional advice or services – for example, an accounting error that costs a client money. Public liability covers physical injury or property damage caused by your business operations – for example, a client tripping over a cable in your office. Most professionals need both, but they cover fundamentally different risks.

PI insurance operates on a 'claims-made' basis, meaning the policy that responds is the one in force when the claim is first made or notified – not the policy that was in force when the work was performed. This is why continuous, unbroken cover is essential. If you change insurers or let your policy lapse, you may lose cover for past work. Run-off cover is available for professionals who retire or close their practice.

The limit of indemnity you need depends on your contractual obligations, regulatory requirements and risk exposure. Many contracts require $1M, $2M, $5M or $10M minimum cover. Regulatory requirements vary by profession – for example, AFSL holders have specific minimums set by ASIC. Consider your largest client contracts and the potential financial impact of a claim when selecting your limit.

Contact us at Shielded Insurance on 1800 97 98 99 or your insurer directly. With PI insurance, early notification is critical – you must notify your insurer of any claim or circumstance that could give rise to a claim as soon as you become aware of it. Late notification can jeopardise your cover. Never admit liability or attempt to settle a claim without insurer approval.

We access a broad range of Australian domestic markets, specialist underwriting agencies and international capacity including Lloyd's of London syndicates. This allows us to place cover for standard professions through to complex or hard-to-place risks. As brokers, we compare multiple options to find competitive and suitable cover for your profession and risk profile.