The short answer
Hardware installation or other on-site work can change a software company’s liability exposures and underwriting classification. Disclose the physical work, equipment, subcontractors and locations. Review products-completed operations and relevant exclusions, rather than assume software-only coverage extends to installation work. Budget and timing examples are illustrative.
Use this guide to prepare questions, not to establish coverage. Any unsourced costs, limits or timing ranges are illustrative planning examples, not quotes, verified market averages or carrier commitments.
Why on-site installs change general liability
Software-only companies are rated as office risks, because almost nothing they do can injure someone or damage property. Installation work changes that. Your team now works in customer buildings, and your work stays behind after you leave. Hardware adds products liability on top.
Carriers rate this with a different class and often a different market. Some software-focused programs decline installation work entirely.
Products and completed operations, explained
| Exposure | Example | Coverage part |
|---|---|---|
| Ongoing operations | A technician damages a ceiling during install | Premises and operations |
| Completed operations | A mounted device falls a month later | Products-completed operations aggregate |
| Products | Your hardware overheats and causes a fire | Products-completed operations aggregate |
| Your own work | Redoing a faulty install | Usually excluded |
The last row surprises founders. General liability pays for damage your work causes to other property, not the cost of fixing your own work.
Customers who know about the installs will often ask for completed operations additional insured status, the CG 20 37 form or its equivalent. See how completed operations endorsements work.
What else on-site work adds to your insurance program
- Workers’ comp: installers are rated in installation classes, not the office clerical class, at much higher rates.
- Auto: driving to customer sites in company vehicles needs commercial auto; personal cars need hired and non-owned auto.
- Subcontractors: if subs do the installs, collect their certificates and require them to name you as additional insured.
- Contract wording: check whether the customer’s exhibit was written for software or for contractors. The second is stricter.
How much general liability costs with on-site installs
Software plus installs typically pays $1,800 to $4,800 a year for general liability. A seed-stage software-only company pays $500 to $1,200. The spread depends on how much revenue comes from installs and what you install. Illustrative annual budgeting ranges, not quotes or measured placement averages. Actual pricing requires underwriting; taxes and fees may be additional. For the full program by stage, see startup insurance cost by funding stage.
Who can write software plus installation work
Online platforms built for software companies often stop at the first installation question. StartupInsurance.ai places companies that do both with markets that rate the installs correctly, so the policy doesn’t fail at the first claim. For the standard software side, see general liability coverage for startups and how to meet a $1M/$2M requirement with a same-day certificate.
Get a contract check
Send us the contract and a short description of the install work. We provide an initial written review within one business day after receiving the necessary information, with questions and next steps. Carrier quotes, coverage decisions and policy changes may take longer. Get a free contract check.
A few more answers
Frequently asked questions
Does my general liability cover installs done by a subcontractor?
It can cover your liability for their work, but carriers expect subs to carry their own insurance. Collect a certificate from each sub, and require them to name you as additional insured.
What is the "your work" exclusion?
It excludes damage to your own completed work. If a bad install damages the customer's server room, GL can respond to the server room. Redoing the install itself is your cost.
Will a premium audit charge me for uninsured subcontractors?
Often, yes. At audit, carriers can count payments to subcontractors without their own insurance as your payroll or revenue. That can raise the premium after the policy year ends.
Can I put installs in a separate company to protect my software rates?
Some companies do, with separate policies for each entity. It only works if contracts name the right entity for each kind of work. Talk to counsel before restructuring.
Does Tech E&O cover a failed installation?
It depends on how the policy defines your technology services. Financial loss from a failed install can be a Tech E&O claim if installation is listed. Physical damage remains a general liability claim.
General information, not a coverage determination or legal advice. Unless a specific source is identified, prices and timing ranges are illustrative planning examples—not measured market averages, quotes or guarantees. Policy wording, carrier, state and your company’s operations determine what applies.