Business Insurance Costs for a Small IT Consulting Company
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How Much Is Small IT Consulting Company Insurance?

To give you an idea of how much your small consulting firm might pay for its small business insurance, we pulled cost information based on a hypothetical small IT consulting company that has two to five employees.

Based on that data, a small IT consulting company might expect to pay roughly…

  • $538 to $1,110 / year for General Liability Insurance.
  • $800 to $1,169 / year for Umbrella Insurance.
  • $2,441 / year for Workers' Compensation Insurance.
  • $961 to $1,264 / year for Errors & Omissions Insurance.
  • $1,850 / year for a Fidelity Bond.

We'll look at each policy cost in more detail below, but be aware that the following coverages and limits are samples and are not intended as recommendations. To get an accurate figure for your business insurance costs, apply for a quote.

Also worth noting: We sometimes provide both average and median numbers for policy costs. In some cases, a few expensive outlier policies drove up the average cost when the majority of our customers paid less – which is reflected by the median price.

How Much Does General Liability Insurance Cost for a Small Consulting Company?

General Liability Insurance is the most basic type of commercial insurance and can pay for claims related to third-party bodily injury or property damage. The policy may cover both accidents on your premises and at your customer's location.

General Liability Quote:

  • Average General Liability Insurance cost: $1,110 / year.
  • Median General Liability Insurance cost: $538 / year.

General Liability Quote: Coverage Amounts

$1,000,000 General Liability per Occurrence
$2,000,000 General Liability Annual Aggregate
$1,000,000 Personal & Advertising Injury per Occurrence
$2,000,000 Products Completed Operations Aggregate
$300,000 Damage to Rented Premises
$10,000 Medical
$1,000,000 Hired/Non-owned Auto

How Much Does Umbrella Liability Insurance Cost for a Small Consulting Company?

Umbrella Liability Insurance provides coverage for claims that exceed your available General Liability coverage. This coverage may also be applied to Employer's Liability Insurance (part of your Workers' Comp coverage) and Hired and Non-Owned Auto Insurance claims. It can't be applied to claims that exceed your E&O Insurance limits, though.

Umbrella Liability Quote:

  • Average Umbrella Insurance cost: $1,169 / year.
  • Median Umbrella Insurance cost: $800 / year.

Umbrella Liability Quote: Coverage Amounts

$1,000,000 Per Occurrence and Aggregate
$10,000 Retention (Deductible)

How Much Does Workers' Compensation & Employer's Liability Cost for a Small Consulting Company?

If you have employees, you may need to purchase Workers' Compensation Insurance. The requirements vary by state, so check the rules where your business is based. Workers' Comp coverage can help cover the costs associated with workplace injuries and illnesses. For a comprehensive analysis of Workers' Comp Insurance costs across all industries and a state-by-state guide to Workers' Compensation laws, visit the Insureon website.

Workers' Compensation Insurance Quote:
Employer's Liability

  • Typical premium cost (based on state rates and payroll): $2,441 / year.

Coverage Amounts

$1,000,000 Bodily Injury by Accident, Each Accident
$1,000,000 Bodily Injury Disease, Each Employee
$1,000,000 Bodily Injury Disease, Policy Limit


State Class Payroll
MO 8803-06 $100,000
TX 8810-08 $434,800

*Owner/officer payroll may have been adjusted to state guidelines.

Worth noting: The above Workers Compensation premium is auditable. Once the policy term ends, the insurance company may request a report of the actual payroll during the policy period. If your actual payroll amount differs from the estimate provided on your application, it may result in an additional premium charge or a premium credit.

You should also notify the carrier or our agency when employees are hired during the year that reside or will work for an extended period of time outside of the state where your company is based.

How Much Does Errors & Omissions Insurance Cost for a Small Consulting Company?

Errors & Omissions Insurance, also known as Professional Liability Insurance, can pay for your legal expenses when you're accused of negligence, errors, or omissions in your professional services.

Errors & Omissions Insurance Quote:

  • Average Errors & Omissions Insurance cost: $1,264 / year.
  • Median Errors & Omissions Insurance cost: $961 / year.

Coverage Amount

$1,000,000 Per Occurrence
$1,000,000 Annual Aggregate
$5,000 Deductible

Worth noting: The Errors & Omissions coverage and premium quoted above includes unauthorized access and malicious code coverage. It doesn't include intellectual property liability and cyber liability coverage, which is often required by software developers, web developers, and ASPs, etc. If you would like more information about protection against these risks, please contact us.

Claims-made notice: All Errors & Omissions policies quoted are issued on a "claims made" basis. This means that coverage is only provided for work that is done while the policy is in force and for claims that are filed while the policy is in force.

How Much Does a Fidelity Bond Cost for a Small Consulting Company?

A Fidelity Bond, also known as an Employee Dishonesty Bond, provides coverage when an employee steals money, equipment, or other assets from one of your clients. It's often standard operating procedure for financial institutions, such as banks, to require companies they work with to purchase this type of coverage.

Fidelity Bond Quote:

  • Typical premium cost: $1,850 / year.

Coverage Amount

$50,000 Deductible

Billing Options

In most cases, the insurance company will bill you directly for General Liability, Worker's Compensation, Umbrella, and Fidelity Bond policies. They will invoice you four to six weeks after coverage starts.

The Errors & Omissions policy can either be paid in full prior to starting coverage, or we can arrange financing through a premium finance company. They will usually require 30 percent down and typically charge around 15 percent interest.