Professional indemnity
IT liability cover pays your clients' financial losses from programming, consulting and administration and defends unjustified claims.
Insurance broker / Business types / IT, media and creative
Insurance for IT service providers, system integrators and software developers in Germany
An update takes down the client's stock management system, a backup script has been running into the void for months, an admin forgets the installation on half the machines: IT mistakes hardly ever cost hardware, they cost the client's revenue. That is why ordinary public liability cover is not enough here. This page explains what you need and what it costs.
The question almost everyone asks first
Do I need IT liability and cyber insurance, or is one enough?
They are two different things. IT liability pays when your mistake causes a loss for a client and the client claims against you. Cyber insurance pays your own costs when you are attacked: forensics, recovery, downtime. If you manage client systems you need both, because an attack on you hits your clients straight away.
What goes wrong in this trade
- 01
Faulty software
A bug in the till system, a wrong rounding rule in the invoicing software or a faulty update costs the client revenue, rework and trust.
- 02
Data loss
A migration script deletes client data and the backup had been broken for weeks. Recovery and extra costs quickly reach six figures.
- 03
Administration
Missed patches, wrongly set permissions or a security update that was never installed open the door to attackers in the client's network.
- 04
Third party rights
Third party code, libraries with the wrong licence or images in an app lead to formal cease and desist letters (Abmahnungen) and damages for copyright and trade mark infringement.
- 05
An attack on you
If you hold remote maintenance access to many clients, you are a worthwhile target. One compromised account opens every client network at once.
- 06
Hardware at the client's site
A server slips out of the rack during installation, or a water pipe is drilled while laying cables.
Compared with other trades, 1 low to 5 high.
The insurance you need
Essential
Cyber insurance
Covers your own costs after an attack: forensics, recovery, downtime and reporting duties.
Strongly advised
Business liability
For injury and property damage at the client's site; good IT tariffs combine both in one policy.
Electronic equipment
Replaces servers, laptops and test devices after breakage, power surges and theft.
Occupational disability
For freelancers the most important private cover, because without your ability to work there is no income.
Depends on the business
D&O insurance
For managing directors of a software company who are personally liable for bad decisions and inadequate IT security.
Business legal expenses
For disputes over acceptance, fees and employment contracts, which are common in software projects.
What it costs: example prices
The premium depends on turnover, activity and the sum insured. Administration and work close to data centres cost more than pure consulting or web development.
| Insurance | Example | Typical range |
|---|---|---|
| Professional indemnity | IT freelancer, turnover 80,000 euros, 500,000 euros for financial loss with public liability | around 300 to 900 euros a year |
| Professional indemnity | Software company with ten staff, turnover 1.5 million euros, 2 million euros cover | around 2,500 to 6,000 euros a year |
| Cyber insurance | Sole trader up to 70,000 euros turnover, 100,000 euros cover | around 300 to 500 euros a year |
| Electronic equipment | Servers, laptops and test devices worth 30,000 euros | around 150 to 450 euros a year |
| D&O insurance | Management of an IT GmbH, 1 million euros cover | around 600 to 1,500 euros a year |
For comparison: A freelancer's IT liability cover costs about as much a year as three to ten billed developer hours.
Guide prices excluding German insurance premium tax, as of September 2026, from published tariff examples; the figures for the software company, electronics and D&O are guide values from our own quoting experience. We obtain the exact quote for you.
Sources of the price examples
Our suggestions: three packages
01
Freelancer
For: Developer, admin or consultant without employees
- Professional indemnity
- Business liability
Together around 300 to 900 euros a year
Request this package02
System integrator
For: IT service provider with a team, remote maintenance and client networks
- Professional indemnity
- Business liability
- Cyber insurance
- Electronic equipment
Together around 2,000 to 5,000 euros a year
Request this package03
Software company
For: GmbH with its own products, development and a management team
- Professional indemnity
- Business liability
- Cyber insurance
- Electronic equipment
- D&O insurance
- Business legal expenses
Together around 5,000 to 12,000 euros a year
Request this packageThe worst day at a system integrator
Six things that really happen to IT service providers, all on a single Monday. Tap through the day and see who pays.
Damage so far€248,000
-
After your overnight update, a wholesaler's stock management system will not start. Two days without shipping.
-
During a data migration for a CRM client, contacts were deleted and the backup was broken. Re-entry and extra costs.
-
During installation in the client's server room a server slides off its rails and damages the unit next to it.
-
Your remote maintenance account has been taken over. Forensics, password changes at 40 clients and three days of emergency operation.
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Power surge after a lightning strike: the test server and two workstations in the office are destroyed.
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A client refuses acceptance and payment of a project, and you sue for the final instalment.
Which package would you have had?
Illustrative amounts before any excess. Whether and how much is paid depends on the policy terms.
Practical tips from your broker
- Describe your activities precisely: development, administration, hosting, consulting and training are insured separately in many tariffs.
- Choose at least 500,000 euros for financial loss, and often 1 to 3 million euros for contracts with large corporations, as the framework agreement requires.
- Make sure infringements such as copyright, trade mark and data protection violations are included.
- Negotiate liability caps and exclude lost profit in your contracts where possible; no insurer pays contractual penalties.
- Check for worldwide cover if your software runs abroad or you work for clients in the USA.
- Protect your own access to client networks with multi-factor authentication; many cyber insurers ask about this before accepting you.
Why NAMMERT for your business
We read IT clauses closely
As a broker we compare several insurers and check that your activities, infringements and cover abroad are really written into the policy.
Claims handling first hand
In boat insurance we settle claims ourselves. We know how to report a claim so that the insurer quickly provides forensics and a lawyer.
Company and private together
IT liability, cyber, company cars, income protection and pensions are looked after in one place.
Family business since 1989
Free of charge for you, as the insurer pays our commission. You have fixed contacts, not just a customer portal.
Questions and answers
Frequently asked
What is the difference between IT liability and public liability?
Public liability pays for injury and property damage. IT liability also pays pure financial losses, such as a client's lost revenue after a programming error. For IT service providers it is the more important part.
What does IT liability insurance cost?
For freelancers, sound tariffs start at around 300 euros a year and go up to a few thousand euros depending on turnover and sum insured. Software companies with a team usually pay several thousand euros.
Do I need my own insurance as a freelancer working through an agency?
Yes, project agencies usually require proof of your own IT liability cover with a minimum sum. The agency's policy generally only protects its own employees.
Are cease and desist letters over open source licences covered?
If infringements are included, the insurer handles the defence and pays justified claims. Deliberate infringements are never insured.
Does the insurer pay availability guarantees from my SLA?
Generally not. Promises beyond statutory liability, contractual penalties and flat-rate damages are excluded.
Is cyber insurance more expensive for IT firms?
Often yes, because IT service providers with access to many clients carry a higher risk. Multi-factor authentication, off-site backups and documented patching lower the premium.
NAMMERT insurance broker
Request quotes for IT service provider
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We will be in touch within one working day. If it is urgent: +49 3375 29 12 77.
Related trades
Who pays if my client receives a cease and desist letter over an image on the website?
Does the insurer pay the service credits from my SLA?
How high should my sum insured be?
Official classification
This page covers the following classes of the German WZ 2025 (identical to NACE at four digits):
- 58.21 Verlegen von Computerspielen
- 58.29 Verlegen von sonstiger Software
- 62.10 Programmierungstätigkeiten
- 62.20 Erbringung von Dienstleistungen der IT-Beratung sowie des Betriebs von Datenverarbeitungseinrichtungen
- 62.90 Erbringung von sonstigen Dienstleistungen der Informationstechnologie
Source: Federal Statistical Office of Germany (Destatis), WZ 2025. All business types
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