How Much Does IT Consultant Insurance Cost? 2026 Rates

U.S. IT consultants can expect to pay between $360 and $600 annually for comprehensive business insurance, averaging $30 to $50 per month. The primary cost drivers are the services offered, business size, location, claims history, coverage limits, and cybersecurity risk.

How Much Does IT Consultant Insurance Cost?

In the U.S., IT consultants usually spend around $360 to $600 a year ($30 to $50 per month) for full business insurance. This is only an average estimate, your real cost could change depending on your specific business. 

If you work as an IT consultant, having the right business insurance is important to protect yourself and your clients. The cost of insurance can vary depending on the types of coverage you need, the risks involved, and the size of your business. 

Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• Property size and value (affects commercial property coverage)
• Past claims history (insurers charge more if you’ve filed claims)
• Location (affects commercial property coverage)
• Services offered (affects professional liability)
• Business interruption coverage and other add-ons

Knowing what affects your insurance cost can help you figure out the coverage your IT consulting business really needs and plan for the actual expenses of keeping your business protected. 

Average IT Consultant Insurance Costs For Coverage Types

IT consultants need different types of insurance to protect their business, like general liability, property coverage, and professional liability.  Here’s a closer look at the major coverages most IT consultants need.

• General liability insurance: $30 per month
• Technology errors and omissions insurance (tech E&O): $70 per month
• Workers’ compensation insurance: $36 per month
• Commercial auto insurance: $200 per month
• Fidelity bonds: $110 per month
• Cyber insurance: $161 per month

General Liability Insurance

The average cost of general liability insurance for an IT consultant business is about $30 per month.

General liability insurance protects your IT consulting business if someone claims you caused them injury or property damage. It’s one of the most important types of insurance for IT consultants because accidents can happen even in an office or client site. 

Several factors impact the cost of general liability insurance such as how much coverage you want, how big your business is, how many people visit your office, and whether you hire subcontractors or add others to your policy.

Policy limits: $1 million per occurrence and $2 million aggregate.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual premiums for IT consultant businesses, compiled from both national carriers and regional insurance agencies. They reflect typical coverage limits for small-to-medium consulting operations, considering risks such as client site visits, third-party property damage, and general liability exposures in office environments. Actual premiums will vary depending on business size, number of employees, claims history, and whether additional policies (such as Professional Liability/Errors & Omissions or Cyber Liability) are bundled with General Liability coverage.

Technology Errors & Omissions Insurance

The average cost of technology errors & omissions insurance for an IT consultant business is about $70 per month.

Technology E&O insurance protects your IT consulting business if a client claims that your work caused them a financial loss. It’s especially important for IT consultants because even small mistakes or oversights can lead to costly problems.

The cost of errors and omissions insurance depends on things like how much coverage you want, how big your business is, whether you’ve had past claims, and the kind of work or projects you do.

Policy limits: $1 million per occurrence and $1 million aggregate.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual premiums for IT consultant businesses as reported by both small and large insurance agencies. They reflect typical coverage costs for Technology Errors & Omissions Insurance, which protects IT consultants against claims of negligence, faulty advice, or financial losses caused by technology-related errors. Actual premiums will vary depending on factors such as business size, revenue, claims history, coverage limits, and the specific risk environment in each state.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for an IT consultant is around $36 per month.

Workers compensation insurance helps pay for medical care and lost wages if an employee gets sick or hurt because of their job. This insurance also protects your business from lawsuits related to workplace injuries. 

Several factors impact workers compensation costs including the size of your payroll, the type of work employees perform, your claims history, and any implemented safety programs.

Most states require workers compensation if you have employees, even in low-risk jobs like IT. 

Most workers compensation policies also include employer’s liability insurance. This helps pay for court costs, lawyer fees, and other expenses if someone sues your business over a work-related injury. 

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual premiums for IT consultant businesses as reported by both small and large insurance agencies. They reflect typical Workers’ Compensation Insurance costs, which cover medical expenses and wage replacement for employees injured on the job. Actual premiums will vary depending on factors such as payroll size, number of employees, claims history, industry risk classification, and state-specific regulations.

Commercial Auto Insurance

The average cost of commercial auto insurance for an IT consultant is about $200 per month.

Commercial auto insurance covers vehicles your IT consulting business uses for work, such as cars used to visit clients or or transport equipment. If one of these vehicles is damaged in an accident or causes harm to someone else, this insurance helps pay for repairs, property damage, and medical bills. 

Personal auto insurance usually doesn’t cover business use, so commercial auto insurance is important if you drive for work. 

Several factors impact these costs, including the coverage limits you pick, driving history, and how much your vehicle is worth. 

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates reflect average annual premiums for IT consultant businesses that may operate small commercial vehicles such as sedans, SUVs, or vans used for client visits, equipment transport, or mobile IT services. Rates are based on blended averages from both small and large agencies, incorporating regional risk exposure, liability coverage levels, and typical usage patterns unique to technology service providers. Actual premiums will vary depending on fleet size, driving history, geographic territory, and insurer underwriting practices.

Fidelity Bonds

The average cost of a fidelity bond for an IT consultant is about $110 per month.

Fidelity bonds protect your business if an employee steals money, data, or property from you or your clients. They are often used to build trust with clients, especially when handling sensitive information.

For example, an IT consultant’s employee steals a client’s sensitive data. A fidelity bond would help cover the costs related to theft. The cost of a fidelity bond is usually a small part of the total bond value.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual premiums offered by both small and large insurance agencies for IT consultant businesses. Actual premiums will vary depending on factors such as the size of the consulting firm, number of employees covered, bond amount required by clients or contracts, credit history, and agency pricing models.

Cyber Insurance

The average cost of cyber insurance for an IT consultant is about $161 per month.

Cyber insurance protects your business if you face a cyberattack or data breach. It can cover costs like fixing computer systems, notifying clients, and legal fees.

This insurance is important for IT consultants who handle sensitive client information. The cost of cyber insurance mostly depends on how much personal information your IT consulting company manages.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual premiums for IT Consultant businesses, reflecting data from both small and large insurance agencies. Actual premiums will vary depending on factors such as company size, claims history, coverage limits, and regional risk exposure.

IT Consultant Business Insurance Costs By Provider

IT consultant business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average annual premiums for IT consultant businesses, considering both small and large agencies. Coverage typically includes general liability, professional liability (errors & omissions), cyber liability, and workers’ compensation. Actual premiums will vary depending on factors such as company size, number of employees, type of IT services offered (e.g., software development, network security, cloud consulting), claims history, and coverage limits.

What Factors Impact IT Consultant Insurance Costs?

Insurance costs for IT consultants can differ from one business to another. An underwriter looks at things like your services, experience, business size, and past claims to decide your premium. Knowing what underwriters focus on can help you understand why your insurance costs what it does and how to manage those expenses.

Type Of Services

Different IT consulting work has different risks. For example, managing cybersecurity or handling sensitive data usually costs more to insure than basic software setup or troubleshooting.

Data Sensitivity

The more personal or confidential data you handle, the higher your insurance costs might be. Handling sensitive client information increases your risk for cyberattacks or data breaches.

Location

Where your business is located can affect your premiums. If you work in an area with a higher risk of cybercrime or lawsuits, your insurance might cost more.

Size Of Your Business

Larger IT consulting firms with more employees and clients usually pay more for insurance. More staff means higher workers’ compensation costs, and more projects increase liability risks.

Equipment And Software

If you use expensive equipment, software, or servers, your property insurance costs may be higher. You might also want extra coverage for equipment breakdown or data recovery.

Claims History

If you’ve made many insurance claims before, your premiums may go up. A clean record can help you get discounts.

Policy Limits And Deductibles

Higher coverage limits mean better protection but cost more. Choosing a higher deductible can lower your monthly payments but means you pay more if you make a claim.

How To Lower Your IT Consultant Insurance Costs

Insurance is important for protecting your IT consulting business, but you don’t have to pay more than necessary. With a few smart steps, you can save money while still keeping your business protected. 

1. Policy Bundles

This means buying several types of insurance from the same company, like general liability and property insurance. Bundling often costs less than buying each policy separately, helping you save money while staying protected. 

2. Strengthening Cybersecurity

Use strong passwords, update your software, and protect your devices to reduce the chance of cyberattacks. Better security can help lower your insurance risk. 

3. Prioritize Safety

Follow safe work practices, keep equipment in good condition, and avoid risky situations. Fewer accidents mean fewer claims. 

4. Raise Your Deductible

Choosing a higher deductible can reduce your monthly insurance cost. Just remember that you’ll need to pay more yourself if something happens and you need to use your insurance. 

5. Review Coverage

Check your policies regularly to make sure you’re not paying for coverage you don’t need. Adjusting your insurance can help you save money.