Computer software engineers develop programs for servers, desktops, intranets or mobile devices by writing, testing and maintaining code. They test, modify and support software to meet clients’ needs, but even well-tested work can lead to claims when a bug, missed requirement or design error causes a loss. Most computer software engineering firms maintain commercial general liability coverage, but those policies typically exclude claims that arise from professional services or advice. Professional liability (errors & omissions) insurance tailored to software engineers adds protection for service-related exposures such as system failures, data breaches and intellectual property disputes. For more detailed plan options, see our Computer Software Engineer Professional Liability Insurance storefront: Computer Software Engineer Professional Liability Insurance. Common exposures and what professional liability can cover - Loss of business income: If a launched update contains a bug that causes a client’s system to crash and the client loses revenue, a claim for those lost earnings and defense costs may follow. Professional liability can cover defense and settlements for covered claims. - Copyright and IP disputes: A competitor or third party may claim your code, libraries or design infringe their rights. Professional liability may respond to allegations of infringement or negligence related to delivered software. - Data breach and privacy incidents: A glitch or insecure integration that allows unauthorized access to client data can lead to privacy claims and regulatory inquiries. - Service-related errors: Mistakes in documentation, training or deployment (for example, an irreversible deletion caused during cutover) can prompt claims for financial damage. How this coverage complements other policies Professional liability complements, rather than replaces, commercial general liability and property coverage. For broader engineering firm needs you may also consider related policies like Engineers Liability Insurance or specialized cyber and technology E&O coverages for custom development projects. If you do custom system builds, consider reviewing options under Custom Computer Programs and Systems Software Development Insurance as part of a layered protection strategy. Underwriting considerations and common limits/exclusions Insurers evaluate factors such as annual revenue, contract types, use of third‑party code, development lifecycle controls, subcontractor management and prior claims. Typical limitations include intellectual property exclusions, contractual liability carve-outs, and retroactive date restrictions. Aggregate limits, defense inside/outside the limit and per‑claim sublimits are common policy features to review. Risk management tips (brief) - Maintain change logs and testing records. - Use clear client contracts with defined deliverables and acceptance criteria. - Provide training and backup/restore procedures to reduce post‑deployment errors. If you provide software development, deployment or consulting services, professional liability insurance helps protect your business and personal assets against service-related lawsuits. Our local, independent insurance agents can help you compare options and understand policy language. Get in touch now. Frequently Asked Questions

Frequently Asked Questions

Do general liability policies cover software errors?

No. Commercial general liability generally covers bodily injury and property damage, not claims arising from professional services or faulty software—professional liability or technology E&O is designed for those risks.

Will professional liability cover a data breach?

It depends on the policy. Some technology E&O policies include cyber and privacy-related coverages, while others exclude certain regulatory fines or breach response costs. Review the policy terms and endorsements.

How do insurers price software professional liability?

Underwriting looks at revenue, contract types, code provenance (use of third‑party libraries), security practices, team experience and prior claims. Better controls and clear client contracts can lower risk and influence pricing.

Still have questions? Talk to a local insurance expert.