A US brokerage is offering insurance against the possibility of being sued for using non-commercial software.

R J Kiln & Co, an international insurance group, is underwriting the policies which indemnify the user for up to $10m.

Users are covered for loss of profits if they have to stop using open source code, any impaired valuation of an acquisition agreement exchanging open source software, and in certain circumstances some of the costs of replacing code.

Matthew Hogg, an R J Kiln & Co underwriter, said: "Worldwide, more than 30 legal claims involving infringement of open source licences have been brought against corporations in the past two years.

"In every known case, plaintiffs have prevailed in enforcing their rights to restrict the use of their code."

Any business wanting a policy will have to be assessed by US firm Open Source Risk Management.

The company tried to market an open source insurance policy in the US last year at the height of the SCO legal battle.