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How much does IT staffing agency insurance cost?
Small business owners can save money on commercial insurance by comparing quotes from different providers with Insureon. IT staffing 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 staffing agency business insurance policies and their costs
Here are the top insurance policies purchased by IT staffing agencies and their average monthly costs:
- Technology errors and omissions insurance (tech E&O): $110 per month
- Cyber insurance: $207 per month
- General liability insurance: $37 per month
- Fidelity bonds: $119 per month
- Workers' compensation: $40 per month
- Commercial auto insurance: $250 per month
Our figures are sourced from the median cost of policies for IT staffing agencies that 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.
Technology errors and omissions insurance
IT staffing companies pay an average of $110 per month, or $1,323 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, also known as professional liability insurance, provides financial protection against claims of professional negligence.
For example, if you fail to conduct a background check and recommend a bad hire, you could find yourself facing a lawsuit.
Tech E&O adds third-party cyber insurance to this coverage, which extends protection in case a vulnerability in your IT staffing services leads to a data breach or cyberattack at a client's business.
This is the average E&O insurance for IT staffing agencies that buy from Insureon:
Insurance premium: $110 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, and the type of data you work on.
Cyber insurance
Technology staffing agencies pay an average of $207 per month, or $2,488 annually, for cyber insurance. This policy is vital for IT staffing agencies that store 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 staffing company.
General liability insurance
IT staffing businesses pay an average of $37 per month, or $446 annually, for general liability insurance.
This policy helps pay for legal defense costs from accidents that damage a client's property or cause bodily injury. It also covers lawsuits related to slander and libel, such as a claim that an employee at your IT staffing agency made a derogatory statement about a competitor on social media.
This is the average general liability insurance policy for IT staffing companies who buy from Insureon:
Premium: $37 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 insurance with commercial property insurance at a discount to protect your computers and other business property.
For technology staffing agencies, the average premium for a business owner's policy is $59 per month or $707 annually. You can also add business interruption insurance to protect against financial losses from a forced closure due to a fire or storm.
The cost of general liability insurance depends 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.
Find insurance quotes for IT staffing agencies
Fidelity bonds
The average cost of a fidelity bond is $119 per month for IT staffing agencies, or $1,426 annually. Some clients, especially in the financial services industry, may require a bond before they will work with your IT staffing company.
Fidelity bonds reimburse your client if one of your employees commits fraud, theft, forgery, or 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.
Workers' compensation insurance
IT staffing agencies pay an average of $40 per month or $475 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.
IT staffing companies that have employees typically must purchase workers' comp to comply with state requirements and avoid penalties. It's also recommended for sole proprietors, as health insurance plans can deny claims for injuries related to your job.
Most policies include employer's liability insurance, which covers the cost of lawsuits related to workplace injuries.
The cost of workers' comp depends on the number of employees and their occupational risks, among other factors.
Commercial auto insurance
IT staffing companies pay an average of $250 per month, or $3,001 annually, for commercial auto insurance. This policy can pay for property damage and medical bills in an accident 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 staffing agency. 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.
Key factors influencing policy costs
Your insurance provider calculates your IT staffing business insurance premiums based on a number of factors, including:
- Type of data you handle: IT staffing agencies that work with clients that handle sensitive data, such as financial information or medical records, may see higher premiums than other types of businesses.
- Services offered: IT staffing companies that place contractors with higher-risk companies, such as those in cybersecurity or software development, may see higher premiums compared to other staffing businesses.
- Number of employees: If you have multiple full-time employees or contractors on staff, this could increase premiums due to a higher risk of accidents or property damage.
- Location: If your IT staffing company is located in an area that is more prone to natural disasters, frequent foot traffic, or elevated crime rates, you may have to pay higher insurance costs than those who are located in areas where these factors are less present.
- Security measures: IT staffing agencies that maintain more strict risk management practices could see lower rates than companies with fewer security measures in place.
- Coverage limits and deductibles: Higher coverage limits and lower deductibles on your policy will typically increase premium costs, while lower limits and a higher deductible can help keep IT staffing insurance rates lower.
- Business size and revenue: Insurance companies may assume that an IT staffing agency that is making more money will also face increased industry exposure, which can generate higher premiums.
- Type of business structure: A small IT staffing company with a few employees may not have to pay as much for insurance as a larger staffing agency with several employees and contractors.
- Business equipment and property: IT staffing businesses that contract with companies that use valuable computers, security infrastructures, or other systems are likely to see increased premiums. Similarly, any equipment that is frequently used could cost more to insure than items that are used less often.
- Types of insurance coverage purchased: Some policies are required for IT staffing agencies to work with certain clients. These required policies often are needed to cover more expensive accidents and lawsuits, which tend to cost more than basic coverages.
- Claims history: An IT staffing business with a lengthy list of previous insurance claims will likely pay more for insurance than a company with no claims history.
How do I get affordable IT staffing agency insurance?
Insureon can help IT staffing agencies, IT consultants, and employment agencies find affordable insurance coverage in three easy steps:
- Fill out a free online application with details about your business.
- Compare custom quotes from top-rated U.S. insurance providers.
- 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 (COI) for proof of coverage. Most small business owners can get insured within 24 hours of applying for quotes.
What our customers are saying
Updated: June 18, 2026
The average costs on this page were derived from our data on small business owners in the IT staffing field who purchased policies through Insureon. Most of our customers have less than five employees, annual revenue ranging from around $50,000 to more than $200,000, and five years or less in business.
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