How Much Does Technology Insurance Cost
for IT Businesses, Consultants, & Subcontractors?

Irrespective of business size or policies purchased, the average cost of small business insurance for IT firms in 2014 was $701.64. The median cost was $600.34.

Of course, the big-picture summary only tells you so much about what you can expect from the insurance-buying process. If you’re interested in a more detailed look at how much technology insurance costs and what businesses like yours are buying, take a look at the pricing breakdown on the rest of this page.

Or if you’d prefer, check out pricing details for some of the specific IT professions we serve by clicking the links below.

When you submit your online insurance application, one of Insureon's IT insurance agents emails you insurance quotes from different providers. It's always helpful to work with a company like insureon, which partners with multiple insurance providers to find the most competitive quotes so you can choose the one that works for your business.

What Goes into the Cost of Technology Insurance?

The price of your insurance reflects the size of your business, the kind of cyber liability and data risks you have, and other factors. Larger businesses that have larger contracts naturally have higher premiums. But your location, expertise, and claims history also affect the cost of your policies.

While the cost of Technology Errors and Omissions Insurance, General Liability Insurance, and other technology policies varies from one business to the next, we've compiled some data on coverage costs that are typical for small IT businesses — independent contractors, one-person operations, and those with a few employees or contractors.

Number of Policies Dictates Cost

Number of Policies Dictates Cost

IT professionals tend to buy one or two types of coverage, though some buy as many as five.

As with anything, the more insurance policies you buy, the more you can expect to pay. But how much more? Read on to get an idea of how your costs will be affected by buying multiple policies.

Cost of 1 Insurance Policy

The majority of insureon customers (53 percent) buy just one policy. Of those who do…

  • 37% buy General Liability Insurance.
  • 18% buy a Business Owner's Policy (BOP).
  • 20% buy Errors & Omissions.
  • 22% buy Workers' Compensation.
  • 2% buy a Fidelity Bond.

The average cost for businesses that buy just one insurance policy is $638.29 per year, and the median is $469.00.

Cost of 2 Insurance Policies

For IT firms that buy two policies, the average annual cost is $1,312.88 (the median is $1,125.00). The most popular two-policy combinations are…

  • 34%: General Liability + Workers' Comp
  • 26%: General Liability + Errors & Omissions
  • 17%: Business Owner's Policy (BOP) + Errors & Omissions
  • 14%: Business Owner's Policy (BOP) + Workers' Comp

Cost of 3 Insurance Policies

For businesses that buy three policies, the average yearly cost is $2,316.12 (the median cost is $1,887.00). The most popular three-policy combinations are…

  • 51%: General Liability + Errors and Omissions + Workers' Compensation
  • 31%: General Liability + Errors and Omissions + Fidelity Bond
  • 7%: Business Owner's Policy + Errors and Omissions + Workers' Compensation
Policy Type Affects Cost

Policy Type Affects Cost

Of course, it's not just the number of policies you buy that affects the price – the type of coverage also matters. Just as window locks, door locks, and security systems come with different price tags, so do insurance policies that offer protection for different parts of your business.

One of the most popular (and least expensive) types of coverage we sell, General Liability Insurance, comes with an average yearly cost of just $513.57. This policy can help a business cover costs associated with third-party injuries and property damage. This policy might offer benefits if, for example, a client trips and falls in your office.

Another popular policy, Errors & Omissions Insurance, tends to come with a slightly higher cost, averaging $817.32 per year. Why? Because E&O policies can offer coverage when a client sues over financial losses associated with an IT professional's work. The potential loss and lawsuit costs are greater here, and the cost of this policy reflects that.

Take a look at the following chart to see where other technology insurance policies fall on the price spectrum.

General Liability Insurance?

How Much is General Liability Insurance for IT Professionals?

What do they choose?

Like most businesses in the industries Insureon serves, IT professionals prefer General Liability Insurance policies with limits of $2 million / $1 million. To give a better idea of limits chosen by our IT customers:

  • 85% buy $1 million / $2 million
  • 1% buy $2 million / $2 million
  • 14% buy $2 million / $4 million

Breakdown of Cost for a $1M / $2M Policy

The average price of a $1 million / $2 million General Liability Insurance policy for IT professionals is $513.57 per year, with a median price of $425. The average price of a $1M / $2M General Liability insurance policy for small businesses in all industries is $576.08.

To see how the cost of General Liability Insurance for technology companies compares with other industries, visit Insureon's General Liability Insurance Cost Analysis New browser window icon..

Errors and Omissions Insurance?

How Much is Errors and Omissions Insurance for IT Professionals?

What do they choose?

The most popular E & O policy has limits of $1 million / $1 million.

How much do they pay?

Breakdown of cost for $1M / $1M E & O Policy

The average price of a $1M / $1M E & O Policy for an IT professional is $871.32 annually; $805 is the median price. For all small businesses, the average price of a $1M / $1M E & O Policy is $967.38.

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

Ballpark Estimates for Technology Insurance Prices

For each of the IT professions we cover, we crunched the numbers and found a typical price range our IT clients pay for their premiums. While your premium costs might be different, these insurance cost estimates give you a ballpark number that can help you budget.

Choose your specialty to find out how much business insurance might cost for you.

Business Intelligence and Data Miners | Computer Repair and Installation Companies | Database Admins (DBAs) | Digital Advertising and Internet Marketing Firms | IT Consultants | IT Staffing and Placement Businesses | IT Project Managers and Quality Assurance Professionals | Mobile Developers | Network and Security Consultants | SEO / SEM Professionals | Software and Application Developers | Telecommunications / Cabling Installers and Maintenance Professionals | Web Developers | Web Hosting Companies

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