E&O Further Reading
How Much Does Technology Errors and Omissions Insurance Cost?

The cost of technology Errors and Omissions Insurance will vary from IT business to IT business. But let's talk generally about what you can expect to pay and look at some sample insurance quotes to help you budget for your small business insurance.

Sample Insurance Quotes for IT Professionals

Sample Insurance Quotes for IT Professionals

Let's start with the basics. Below you'll find ballpark insurance cost estimates for many types of tech businesses. You can visit our full list of sample insurance quotes for more details, but here's a quick glimpse at typical E&O insurance premiums for:

  • Database administrators (DBAs): $700 – $1,315
  • IT consultants: $700 – $1,118
  • IT staffing and placement businesses: $810 – $2,456
  • Mobile developers: $700 – $1,635
  • Network security consultants: $579 – $1,185
  • Software / App developers: $700 – $1,215
  • Web developers: $700 – $1,291
  • Web hosts: $700 – $1,791

These quotes show typical annual premiums for each business (i.e., how much you can expect to pay for E&O each year). If you break down this cost by month, it might come out to something like $60 to $200 a month, depending on your area of IT.

Why are these sample insurance quotes listed by specialty? Tech businesses face different risks. If you run a web hosting business that stores terabytes of data for hundreds of clients, you might have bigger risks than a part-time IT consultant who only works with a few clients. IT staffing businesses have to worry about liabilities that come with recommending contractors to clients.

Your insurance should be customized for your business. At Insureon, we help thousands of tech businesses find insurance, so we know how important it is to find insurance that can…

  • Meet requirements outlined in client contracts.
  • Protect you from tech lawsuits.
  • Cover third-party cyber liability lawsuits (for more on client data breach lawsuits, see "Understanding Third-Party Cyber Liability").

Having insurance customized to your area of tech can lend your business valuable financial protection.

The Inner Workings of an IT Insurance Quote

The Inner Workings of an IT Insurance Quote

At some point, you'll want to get insurance quotes for your business. How do you go about doing that?

The simplest way: fill out an online insurance application. You'll have to supply basic information about your business, including…

  • Your location.
  • Projected revenue.
  • Number of employees.
  • Details about prior E&O Insurance claims (if any).

Once you've supplied that info, you'll get free quotes emailed to your business from top-rated insurance carriers.

The quotes you receive aren't set in stone. You may be able to adjust the cost of your insurance; by talking with your agent, you may be able to lower your premiums by increasing your deductible. You'll have to pay more for a claim, but may pay less in annual costs. It's not always a smart move to do this, but it's an option budget-minded tech companies can consider.

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