Quick Answer: E&O insurance (professional liability) for IT consultants costs $67–$500+/month depending on revenue, specialty, and client size. Solo consultants typically pay $67–$125/mo. Get your IT consultant E&O quote →

If you're an IT consultant, MSP, technology advisor, or freelance developer, E&O insurance (also called professional liability insurance) protects you when a client claims your work caused them financial harm. From misconfigured systems to missed deadlines, E&O coverage pays for your legal defense and settlements.

IT Consultant E&O Insurance Costs by Role

IT Specialty	Solo/Freelance (Monthly)	Small Firm 2–10 (Monthly)	Mid Firm 10–50 (Monthly)
IT Consulting (general)	$67–$100	$150–$300	$300–$600
Managed Service Provider (MSP)	$85–$125	$175–$350	$350–$750
Software Development	$75–$125	$175–$350	$350–$700
IT Staffing/Advisory	$60–$90	$125–$250	$250–$500
Cybersecurity Consulting	$100–$150	$200–$400	$400–$800

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E&O Cost by Annual Revenue

Annual Revenue	Monthly E&O Cost	Typical Coverage Limit
Under $100K	$67–$85	$500K/$500K
$100K–$250K	$85–$125	$1M/$1M
$250K–$500K	$125–$200	$1M/$2M
$500K–$1M	$175–$300	$1M–$2M
$1M–$5M	$250–$500	$2M–$5M

Why IT Consultants Need E&O Insurance

Client contracts increasingly require E&O insurance. Without it, you may lose deals. Common IT consultant E&O claims include:

System implementation failures: Migration causes data loss or downtime
Missed deadlines: Project delays that cost the client revenue
Security breaches: Client blames your configuration for a hack
Bad advice: Technology recommendations that don't perform as promised
Software bugs: Deliverables with defects that cause business disruption

Contract Requirements: What Clients Ask For

Client Type	Typical E&O Requirement	COI Required?
Enterprise / Fortune 500	$2M–$5M limits	Yes, named insured
Mid-market companies	$1M–$2M limits	Yes
Small businesses	$500K–$1M limits	Sometimes
Government contracts	$1M–$5M limits	Always
Startups	Varies, often $1M	Occasionally

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What Factors Affect IT E&O Pricing?

Annual revenue: Primary pricing factor — higher revenue = higher premium
Specialty: MSPs and cybersecurity consultants pay more than general IT advisors
Client size: Serving enterprise clients increases exposure and premium
Claims history: Past claims can increase rates 25–75%
Contract terms: Unlimited liability clauses increase carrier risk
Subcontractors: Using subs requires higher limits and can increase premium

E&O vs Cyber Insurance for IT Consultants