Business Insurance for IT Consultants
IT Project Management and Business Consulting
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How much does IT consultant business insurance cost?

Small business owners can save money on commercial insurance by comparing quotes from different providers with Insureon. IT consultant insurance costs depend on the type of policy, coverage limits, deductibles, and factors such as your business's location and number of employees.

Top IT consultant insurance policies and their cost

Here are the top insurance policies purchased by IT consultants and their average monthly costs:

Our figures are sourced from the median cost of policies for IT consultants who apply for quotes with Insureon. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.

General liability insurance icon

General liability insurance

IT consultants pay an average of $30 per month, or $363 per year, for a general liability insurance policy.

This policy helps pay for legal costs from accidents that damage a client's property or cause a bodily injury. It also covers slander and other advertising injuries, such as a claim that an employee at your consulting firm made a derogatory statement about a competitor on social media.

This is the average general liability policy for IT consultants who buy from Insureon:

Premium: $30 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Insureon’s licensed agents typically recommend a business owner’s policy (BOP), which combines general liability coverage with commercial property insurance at a discount to protect your computers and other business property.

For IT consultants, the average premium for a business owner's policy is $46 per month or $546 per year. You can also add business interruption insurance to protect against financial losses from a forced closure due to a fire or storm.

General liability insurance costs depend on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic, and any subcontractors or additional insured endorsements. Learn more about how your premium is calculated.

Errors and omissions insurance icon

Technology errors and omissions insurance

IT consultants pay an average of $65 per month, or $785 annually, for tech E&O insurance. This policy bundles errors and omissions insurance with cyber insurance at a lower cost than buying the policies separately.

Errors and omissions insurance provides financial protection against claims of professional negligence, such as failure to fulfill the terms of a contract. It's also referred to as professional liability insurance.

Tech E&O adds third-party cyber insurance to this coverage, which extends protection in case your advice or software recommendation leads to a data breach or cyberattack at a client's business.

This is the average E&O insurance for IT consultants who buy from Insureon:

Insurance premium: $65 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $2,500

The cost of errors and omissions insurance depends on factors such as the coverage limits you choose, the size of your business, your claims history, and the type of projects you manage.

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Cyber insurance

IT consultants pay an average of $164 per month, or $1,964 per year, for cyber insurance. This policy is vital for any business that stores personal information, such as customers' credit card numbers, Social Security numbers, or email addresses.

Cyber insurance covers the cost of complying with your state's data breach laws after a cyber incident. It can pay for legal fees, customer notification costs, and other expenses related to a data breach or cyberattack. You may also see this policy referred to as cyber liability insurance or cybersecurity insurance.

The cost of cyber insurance primarily depends on the amount of personal information handled by your IT consulting company.

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Fidelity bond icon

Fidelity bonds

The average cost of a fidelity bond is $110 per month for IT consultants, or $1,316 annually. Some clients, especially in the financial services industry, may require a bond before they will work with your consulting business.

Fidelity bonds reimburse your client if one of your employees commits fraud, theft, or forgery, including illegal electronic funds transfer. This amount must be paid back to the company that issued the bond.

The cost of a fidelity bond is typically a small percentage of the bond amount.

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Workers' compensation insurance

IT consulting firms pay an average of $33 per month or $399 annually for workers' compensation insurance. This policy covers medical expenses and disability benefits when you or an employee suffers a work-related injury or illness.

Businesses that have employees typically must purchase workers' comp to comply with state requirements and avoid penalties. It's also recommended for sole proprietors and independent contractors, as health insurance plans can deny claims for injuries related to your job.

Most policies include employer's liability insurance, which covers legal defense costs related to workplace injuries.

The cost of workers' comp depends on several factors, primarily the number of employees and their occupational risks.

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Commercial auto insurance

IT consultants pay an average of $190 per month, or $2,282 per year, for commercial auto insurance. This type of business insurance pays for property damage and medical bills from accidents involving your company vehicle. It can also cover vehicle theft, vandalism, and weather damage.

Most states require this type of insurance for vehicles owned by an IT consulting firm. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial car insurance depends on several factors, including the policy limits you choose, coverage options, the number and value of your vehicles, and the driving records of anyone permitted to drive.

How do I get affordable IT consultant business insurance?

Insureon can help IT consultants find affordable insurance coverage in three easy steps:

  1. Fill out a free online application with details about your business.
  2. Compare custom quotes from top-rated U.S. insurance providers.
  3. Select a policy and pay the premium to begin coverage.

You can consult a licensed insurance agent for questions about your risks, state insurance requirements, and the best coverage for your business needs. Once you've bought a policy, you can download a certificate of insurance for proof of coverage. Most small business owners can get insured within 24 hours of applying for quotes.

Updated: October 27, 2023
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