Insurance for Tech, Software & IT Services
In tech, your product is often invisible — but the risks are very real. Downtime, data breaches, or a missed deadline can trigger expensive claims.
Common Risks
- Data breaches or hacks affecting clients.
- Project delays causing client losses.
- Service outages or system downtime.
- Intellectual property disputes.
- Employee errors impacting clients.
Covers You Might Need
Professional Indemnity
Covers mistakes in your service or code that cause client losses. If a software bug you introduced brings down a client’s e-commerce site for a weekend, they can claim for lost sales.
Cyber Insurance
Protects against data breaches, ransomware, and cyber incidents. Example: A hacker locks your client’s database — this policy helps pay for recovery, notifications, and legal costs.
Public Liability
Covers injuries or property damage during your work. Think spilling coffee on a client’s laptop during a meeting.
Business Interruption
Covers lost income if your operations are halted after an insured event. Even tech companies need this — a fire in your office can stop work for weeks.
Management Liability
Protects directors and officers against claims of mismanagement or regulatory breaches.
Why Work with Luma
We get that “tech insurance” isn’t one-size-fits-all. We’ll tailor cover that works for your business model, not against it.
FAQs
Does Professional Indemnity cover "Bad Code"?
It covers the fallout of that code. If a bug you missed causes a client’s platform to crash during their biggest sales event, or if a logic error leads to massive data loss, they’ll look to you for the bill. Professional Indemnity steps in to handle the legal costs and damages so a single “oops” in production doesn’t bankrupt your business.
What happens if I accidentally use someone else's IP?
IP disputes are the tech world’s version of a fence dispute, but way more expensive. If a competitor claims your software’s UI or logic infringes on their copyright or patent, the legal fees to fight it are astronomical. Our tech-specific policies can include cover for IP infringement claims, so you can keep building without looking over your shoulder.
If my SaaS goes down, does my insurance pay for the lost revenue?
This is where Cyber Insurance and Business Interruption shake hands. If a hack or a server failure takes your service offline and your customers demand refunds or SLA credits, the right policy helps cover those losses and the costs to get the “All Systems Nominal” green light back on.
Do I need insurance if all my stuff is in the Cloud?
The Cloud is just someone else’s computer—and they can get hacked or fail too. While AWS or Azure have their own insurance, they don’t cover your liability to your clients if their data is leaked from your specific app. Cyber insurance fills the gap between “their infrastructure” and “your responsibility.”
Why do brokers always hide their fees in the fine print?
Because they think tech founders have deep pockets and won’t notice a 20-30% commission tacked onto the premium. At Luma, we’re as transparent as an open-source repo. We strip out those hidden commissions so you pay the real price for the cover, plus a clear fee for our advice. No “premium-hiking,” just fair code.