Have an iOS application development contract and the client requires us to carry $2 mil Professional Indemnity Insurance. Is this a common request?

Yes. Application developers should absolutely carry Professional indemnity insurance.

This policy protects you from business-related lawsuits. It covers many types of business lawsuits, such as:

• Lawsuits alleging negligence, or errors and omissions - e.g. if you make mistakes in your app and these mistakes cause your clients to suffer losses
• Defamation lawsuits
• IP infringement lawsuits
• and much more

This type of insurance can pay for:
1. Lawyer’s fees
2. Legal damages or settlements

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Lawyer’s fees and damages in a lawsuit can easily be hundreds of thousands to millions of dollars. Having this coverage will prevent you from having to pay these costs out your own pocket.