Insurance for IT Consultants & Managed Service Providers

IT consultants and MSPs face unique risks that general business insurance doesn't fully address. When you manage client systems, store sensitive data, or provide technology advice, you need coverage designed for technology-specific exposures.

Essential IT Consultant Coverages

Professional Liability (E&O)

Your most critical coverage. Protects against claims that your IT services caused a client financial loss — failed migrations, system downtime, data loss, or security breaches traced to your work.

Cyber Liability

Covers your own business (and potentially your clients) when a breach occurs. Essential for MSPs who have access to client networks and data.

General Liability

Covers bodily injury and property damage — needed for client site visits and office operations.

Common IT Consultant Claims

Client claims your software recommendation caused a system failure
Data migration error results in lost client records
Ransomware enters client network through your remote access
Project delays cause client to miss a critical business deadline
Client alleges your cybersecurity advice was inadequate

How Much Does IT Consultant Insurance Cost?

Most solo IT consultants pay $1,000–$3,000 per year for an E&O + cyber + GL package. MSPs with employees typically pay $3,000–$8,000 depending on revenue and client base.