A Business Owners Policy (BOP) for IT and technology services companies bundles general liability and commercial property coverage into one affordable policy, typically running $800–$2,500 per year for small-to-mid-size tech firms. It does not include professional liability or cyber coverage — those require separate policies.
Who this is for: IT consultants, managed service providers (MSPs), software developers, helpdesk firms, IT staffing companies, and any technology services business that needs foundational commercial insurance.
TL;DR — Key Takeaways
- A BOP gives IT firms a cost-effective foundation: general liability + commercial property + business income in one policy.
- Technology errors and omissions (Tech E&O) is not included in a standard BOP — it must be purchased separately or via endorsement.
- Annual BOP premiums for IT companies typically range from $800 to $3,000, depending on revenue, headcount, and property values.
- Most client contracts and office leases require proof of general liability before you can start work — a BOP satisfies that requirement.
- Cyber liability is generally excluded from a standard BOP; a standalone cyber policy or BOP cyber endorsement is strongly recommended for any firm handling client data.
What Does a BOP Cover for IT and Technology Companies?
A BOP combines two core coverages that most IT businesses need under one premium:
General Liability (GL): Pays for third-party bodily injury, property damage, and personal/advertising injury claims. If a client slips and falls during an on-site visit at your office, or if a technician accidentally damages a client's server room while performing maintenance, GL responds.
Commercial Property: Covers your business personal property — laptops, servers, networking gear, monitors, and office furniture — against perils like fire, theft, and vandalism. Coverage applies at your listed location(s). Equipment temporarily off-premises (e.g., at a client site) may be covered under an off-premises extension, but limits are often lower; confirm with your broker.
Business Income / Business Interruption: If a covered property loss (e.g., fire at your office) forces you to temporarily shut down, business income coverage replaces lost net income and pays continuing operating expenses during the restoration period. This is bundled into most BOPs.
What a BOP Does NOT Cover for IT Firms
| Excluded Coverage | Why It Matters for IT Companies | How to Add It |
|---|---|---|
| Technology Errors & Omissions (Tech E&O) | Covers financial losses clients suffer due to your professional mistakes, missed deadlines, or software failures | Standalone Tech E&O policy |
| Cyber Liability | Data breaches, ransomware, notification costs, regulatory fines | Standalone cyber policy or BOP cyber endorsement |
| Workers' Compensation | Required in most states for any employee [verify state] | Separate workers' comp policy |
| Commercial Auto | Vehicles used for business travel to client sites | Commercial auto or hired/non-owned auto endorsement |
| Employment Practices Liability | Wrongful termination, harassment, discrimination claims | Standalone EPLI policy |
| Directors & Officers (D&O) | Claims against your leadership team | Standalone D&O policy |
| Professional Liability (general) | Advice-based errors not covered under Tech E&O | Professional liability / E&O policy |
How Much Does a BOP Cost for IT and Technology Businesses?
Premiums depend on annual revenue, number of employees, location, property values, and prior claims history. The figures below are illustrative ranges based on industry data from ISO filings and carrier rate guides — your actual quote will vary.
| Business Profile | Annual Revenue | Employees | Estimated BOP Premium |
|---|---|---|---|
| Freelance IT consultant (home-based) | Under $150K | 1 | $600–$1,000 |
| Small IT consulting firm | $150K–$500K | 2–5 | $900–$1,500 |
| Mid-size MSP or IT staffing firm | $500K–$2M | 6–20 | $1,500–$3,000 |
| Regional IT services company | $2M–$5M | 21–50 | $3,000–$6,000+ |
Note: Companies above roughly $5M in revenue or with significant server/data center property values often exceed BOP eligibility thresholds and may need a Commercial Package Policy (CPP) instead. Ask your broker if a BOP or CPP better fits your profile.
Key premium drivers for IT firms: - Square footage and location of office space - Value of business personal property (equipment-heavy MSPs pay more) - Whether you handle client data or PII (increases underwriter scrutiny) - Claims history in the prior three to five years
Who Is Eligible for an IT Technology Services BOP?
Not all carriers offer BOP eligibility to technology companies — some classify IT firms as too specialized for a standard BOP form and route them to a monoline GL + separate property policy instead. Eligibility criteria vary by carrier, but generally:
- Eligible: IT consultants, software developers, web designers, helpdesk/support firms, small MSPs, IT staffing companies with under $5M revenue
- May require a CPP instead: Large MSPs, data centers, firms with substantial server hardware, companies with prior cyber or E&O claims
- Not eligible for BOP: Pure software product companies (SaaS) with significant product liability exposure, IT firms with >$10M revenue (most carriers)
How to Get a BOP for Your IT Business in 5 Steps
- Gather your business information. Prepare your annual revenue, number of full-time and part-time employees, office address(es), a description of services you provide, and the estimated value of your business equipment.
- Assess your property needs. List all major equipment (laptops, servers, networking hardware, office furniture) and estimate replacement cost values. This determines your business personal property limit.
- Identify contract requirements. Pull any active client contracts or vendor agreements that specify required insurance limits (e.g., "$1M per occurrence general liability" or "additional insured status"). These minimums set your floor.
- Work with an independent broker. An independent agent can compare BOP quotes from multiple carriers who write IT firms, identify which carriers bundle cyber endorsements, and flag coverage gaps before you bind.
- Bind coverage and request your certificate of insurance (COI). Once you accept a quote, your broker issues a COI — typically within one business day — that you can provide to clients, landlords, and contract counterparties.
Real-World Scenario: Austin, TX Managed Services Provider
This is an illustrative example, not a guarantee of coverage or pricing.
The business: A nine-person MSP in Austin, TX providing remote monitoring, helpdesk support, and on-site IT maintenance to small law firms and medical practices. Annual revenue: $1.4M. Office space: 1,800 sq ft leased. Business personal property (laptops, spare server parts, networking gear): $85,000 replacement cost.
Their BOP: - Carrier: Regional commercial lines carrier writing IT firms in Texas - General Liability limits: $1M per occurrence / $2M aggregate - Business Personal Property: $85,000 (replacement cost) - Business Income: 12-month limit - Annual premium: $2,100
The claim: A technician performing on-site server maintenance at a client's medical practice accidentally disconnected the wrong cable array, causing a four-hour system outage and corrupting a backup. The client filed a claim alleging lost productivity and emergency IT costs totaling $18,000.
Coverage result: The BOP's general liability responded to the property damage component (accidental physical damage during on-site work). However, the claim for lost productivity and data recovery costs — arising from a professional error — fell under professional liability / Tech E&O, which the firm had purchased separately with a $1M limit. The Tech E&O carrier covered the remaining $14,500 after a $3,500 deductible. Without both policies, the firm would have faced an uninsured gap.
Takeaway: A BOP alone is rarely sufficient for IT firms. The scenario above illustrates why Tech E&O must accompany the BOP — the two policies are designed to work together.
Frequently Asked Questions
Does a BOP cover technology errors and omissions for IT companies?
No. A standard Business Owners Policy explicitly excludes professional liability, including technology errors and omissions (Tech E&O). If your software recommendation causes a client financial loss, or a misconfigured network causes a data breach, your BOP will not respond to those claims. Tech E&O must be purchased as a separate policy or, in limited cases, as a BOP endorsement where carriers offer it.
How much does a BOP cost for a small IT consulting firm?
Most small IT consulting firms (under $500K annual revenue, fewer than five employees) pay between $800 and $1,500 per year for a BOP. Premiums increase with revenue, headcount, property values, and the complexity of services provided. Firms handling client PII or operating in multiple states typically pay toward the higher end of the range.
What property is covered under a BOP for a technology business?
Your BOP's commercial property section covers business personal property at your listed location — laptops, desktop computers, servers, networking equipment, spare parts, and office furniture are all typical examples. Most BOPs also provide limited off-premises coverage (e.g., a laptop taken to a client site), but those limits are often capped at 10–25% of your total BPP limit. High-value portable equipment may warrant an equipment floater.
Do IT contractors need a BOP, or is general liability enough?
Many solo IT contractors start with a general liability-only policy (often $400–$800/year) if they have no business property to insure and work entirely from client sites. However, if you own equipment, have a home office, or want business income protection, a BOP costs only marginally more and provides broader protection. Most contractors eventually add Tech E&O regardless of whether they choose GL or a BOP.
Can I add cyber liability to my IT company's BOP?
Some carriers offer a cyber endorsement that can be added to a BOP, providing basic coverage for data breach notification costs and limited cyber liability. However, the sublimits are often $25,000–$100,000 — far below what most IT firms need. A standalone cyber liability policy with $500,000 to $1M in limits is typically recommended for any IT company that stores, transmits, or has access to client data.
What general liability limits should an IT firm carry?
The industry standard starting point is $1M per occurrence / $2M aggregate. Many enterprise client contracts require at least $1M/$2M, and some require $2M/$4M or an umbrella policy layered on top. Government contracts and healthcare clients frequently require higher limits. Review all active contracts for specified minimums before choosing your limits.
Do I need a BOP if I work from home as an IT consultant?
Yes, in most cases. Homeowner's or renter's insurance explicitly excludes business activities and business personal property used for commercial purposes. A home-based IT consultant who relies solely on homeowner's coverage has no protection for business equipment, business income, or third-party liability arising from their IT work. A BOP (or at minimum a home-based business endorsement plus GL) fills that gap.
How quickly can I get a certificate of insurance from my BOP?
Most carriers issue a certificate of insurance (COI) within one business day of binding coverage, often the same day. If you need an additional insured endorsement (common for client contracts), that typically takes the same amount of time. When a contract deadline is imminent, ask your broker whether the carrier can issue a binder letter immediately upon binding so you can start work while the formal COI is processed.
Why Choose Morrow for Your IT & Technology BOP
1. Independent agency with access to multiple carriers. Morrow is not captive to any single insurer. We place IT and technology firms with multiple admitted carriers and E&S markets, which means you get competitive quotes tailored to your firm's risk profile — not a take-it-or-leave-it rate.
2. IT industry specialization. We understand the coverage stack that IT companies actually need: BOP as the foundation, Tech E&O layered on top, cyber liability alongside, and umbrella above. We help you build a coherent program rather than piecing together policies that leave gaps.
3. Fast certificate and COI turnaround. Client contracts don't wait. When you need a COI or additional insured endorsement to start a new engagement, we prioritize same-day turnaround on certificate requests.
4. Real claims advocacy. If you have a claim, you deal with us — not just the carrier's 800 number. We help you report correctly, document thoroughly, and advocate on your behalf when disputes arise over coverage scope.
5. Ongoing coverage reviews. IT businesses grow fast. We schedule annual reviews to adjust property limits, flag new coverage gaps as your revenue grows, and ensure you don't outgrow your BOP eligibility without a transition plan.
Get a BOP Quote for Your IT Business
Ready to compare BOP options for your IT or technology services firm? Morrow places commercial insurance for IT consultants, MSPs, software developers, and tech staffing companies. Most quotes are delivered within one business day.
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Related Coverage and Industry Pages
- IT & Technology Services Insurance — Industry Overview
- Technology Errors & Omissions Insurance
- Cyber Liability Insurance for IT Companies
- General Liability Insurance for IT Consultants
- Business Owners Policy — What It Covers
- How Much Does a BOP Cost?
Author & Sources
Written by: Sarah Kellerman, CPCU, CIC — Commercial Lines Producer and content lead at Morrow (Afthonea Inc, DBA Morrow). Sarah has over 12 years of experience placing commercial P&C coverage for professional services and technology firms.
Published: June 2026 | Last updated: June 2026
Sources: - Insurance Services Office (ISO), BOP eligibility guidelines and commercial lines forms - National Association of Insurance Commissioners (NAIC), commercial lines data and state filing reference - Insurance Information Institute (III), small business insurance cost benchmarks - Texas Department of Insurance (TDI), commercial lines licensing and filing requirements [verify state for non-TX readers] - NCCI, workers' compensation classification and premium basis guidance - Carrier underwriting guidelines for IT/technology BOP programs (multiple admitted carriers, not named per filing confidentiality)