How Much Is Business Insurance
for IT Staffing and Placement Businesses?

IT staffing and placement firms are in a precarious position: they can be liable for mistakes made by the consultants, contractors, and temporary workers they send to clients. Fortunately, you can get insurance to cover this liability and protect your business from lawsuits.

We've looked at the cost of small business insurance for thousands of other staffing and placement companies. The cost estimates we've included below represent the range of costs for a typical IT staffing company. Your actual costs may vary, but these numbers can give you a rough estimate.

HOW MUCH IS
General Liability Insurance?

How Much Does General Liability Insurance Cost?

General Liability Insurance protects IT staffing firms from lawsuits (filed by nonemployees) over property damage, bodily injuries, slander, libel, and copyright infringement. A contractor you send to a client could spill their drink on a server, knock over a laptop, or cause other damage while working onsite. General Liability Insurance covers these and a number of other basic business risks.

The median cost of General Liability Insurance for an IT staffing agency is $425 to $542 in annual premiums.

Median Premiums, Limits and Deductibles on General Liability Insurance for IT Staffing and Placement Businesses
Name USD

Median policy premium:

$425 - $542

Median policy limit:

$2 million

Median policy deductible:

None

To see how the cost of General Liability Insurance for IT staffing and placement firms compares with other industries, visit Insureon's General Liability Insurance Cost Analysis New browser window icon..

HOW MUCH IS
a Business Owner's Policy?

How Much Do Business Owner's Policies Cost?

How much does basic business insurance cost an IT staffing firm? A Business Owner's Policy bundles General Liability (see above) and Property Insurance — two policies nearly every business needs. When you purchase these policies together in a BOP, insurers offer you a discount on your rates.

Property Insurance helps small-business owners repair or replace business property after a loss event, such as a fire, theft, or windstorm.

The typical IT staffing / placement agency pays $500 to $751 in annual premiums for its Business Owner's Policy.

Median Premiums, Limits and Deductibles on Business Owner's Policies for IT Staffing and Placement Businesses
Name USD

Median policy premium:

$500 - $751

Median policy limit:

$2 million

Median policy deductible:

$250

HOW MUCH IS
Commercial Auto Insurance?

How Much Does Commercial Auto Insurance Cost?

IT staffing firms can get insurance for their business vehicles through a Commercial Auto Insurance policy. If you or one of your employees is in an accident while driving for work, your business can be liable for damages, repair costs, and medical expenses. Commercial Auto Insurance pays for these and other costs related to an auto accident.

A typical tech staffing / placement firm can pay between $1,331 and $3,313 a year for its Commercial Auto Insurance.

Median Premiums, Limits and Deductibles on Commercial Auto Insurance for IT Staffing and Placement Businesses
Name USD

Median policy premium:

$1,331 - $3,313

Median policy limit:

Varies

Median policy deductible:

None (liability only)

HOW MUCH IS
E&O Insurance?

How Much Does Errors and Omissions Insurance Cost?

Errors and Omissions Insurance (aka Professional Liability Insurance) protects your staffing business from mistakes and contractor errors, covering your lawsuit risk when you recommend an IT worker to a client. Remember: you can be sued if a temporary worker you recommend makes a mistake, botches a job, or costs your clients money. E&O coverage protects you from these and other lawsuits related to your professional responsibilities.

The typical staffing firm pays between $810 and $2,456 in annual E&O Insurance premiums.

Median Premiums, Limits and Deductibles on E&O Insurance for IT Staffing and Placement Businesses
Name USD

Median policy premium:

$810 - $2,456

Median policy limit:

$1 million

Median policy deductible:

$2,500

To see how the cost of Errors and Omissions Insurance for IT staffing and placement firms compares with other industries, visit Insureon's Professional Liability Insurance Cost Analysis New browser window icon..

HOW MUCH IS
a Fidelity Bond?

How Much Do Fidelity Bonds Cost?

Some clients require you to have a Fidelity Bond, which is an insurance policy that protects clients from a loss if you or one of your employees / subcontractors commits a crime or attempts to steal data or money from the client.

If you work with clients in the financial services (investing, banking, etc.), they'll often require you to have this coverage. It's part of the standards that these industries have for protecting their customers' money and financial records.

Fidelity Bond coverage ranges from $1,048 to $1,847 in yearly premiums for IT staffing agencies.

Median Premiums, Limits and Deductibles on Fidelity Bond Insurance for IT Staffing and Placement Businesses
Name USD

Median policy premium:

$1,048 - $1,847

Median policy limit:

Varies

Median policy deductible:

$10,000

HOW MUCH IS
Workers' Comp?

How Much Does Workers' Compensation Insurance Cost?

State laws usually require businesses to cover their employees / contractors with Workers' Compensation Insurance. Some clients work exclusively with IT staffing agents whose contractors have this coverage. Because IT Workers' Comp is usually mandated by state law, many of your clients don't want to pay to cover their temporary workers. Instead, they charge you if they have to add one of your workers to their policy.

Workers' Comp for an IT placement agency typically costs $397 to $696 in annual insurance premiums.

Median Premiums, Limits and Deductibles on Workers' Comp Insurance for IT Staffing and Placement Businesses
Name USD

Median policy premium:

$397 - $696

Median policy limit:

$1 million

Median policy deductible:

None

For more information about your state's requirements, check out our guide to Workers' Compensation Insurance laws New browser window icon..

To see how the cost of Workers' Compensation Insurance for IT staffing and placement firms compares with other industries, visit Insureon's Workers' Compensation Insurance Cost Analysis New browser window icon..

Get Free Insurance Quotes

Free Insurance Quotes for IT Staffing / Placement Firms

For a free cost estimate on any of the policies listed above, fill out our online insurance application or contact a tech insurance agent at 1-800-688-1984.

Grab-n-Go Information

IT Contracts eBook
Get It in Writing: The IT Professional's Guide to Essential Contracts
Browse eBook
Sample certificates
See a sample Certificate of Liability Insurance, the proof of coverage you need for most contracts.
View Sample
Sample Quotes & Cost Estimates
See what insurance really costs: actual quotes by policy & specialty.
Get Estimates
Ask A Question
Submit your questions about construction insurance and get answers from our experts.
Read Answers