Average Tech Business Insurance Cost (2026 Report)

Solo tech practitioners pay about $41 per month for coverage, which is about 45% less than the industry average of $74. Independent developers and freelance designers often work on smaller projects with less contractual liability than firms managing production systems or enterprise accounts. At 20 to 49 employees, costs reach $129 per month, around three times the solo rate. The biggest single jump happens at the first hire, where the monthly rate moves from $41 to $74.

Only $14 separates the sub-industries with the highest and lowest average professional liability costs. Web designers, who work on shorter and lower-stakes projects, pay around $65 per month. They, along with web developers, are the only tech professionals that pay below the industry average. MSPs, who maintain ongoing access to client networks and systems, pay around $79 per month. The table below shows where each tech profession lands.

Professional liability costs vary by about 36% across states, from $64 per month in North Dakota, Maine and North Carolina to $87 per month in Washington, D.C. California, New York and Washington state sit near the top, running 12% to 16% above the industry average. All three are major centers for software companies, SaaS businesses and tech employers, and professional liability claims in those markets are more common and more likely to end up in court.

General liability costs grow more than four times from the solo tier to the largest employee band, moving from $19 per month for solo practitioners to $82 per month for businesses with 20 to 49 employees. The steepest jump is at the top end, nearly 50% from the 10 to 19 tier to the 20 to 49 tier. As tech teams grow, they push more software releases, run more client systems and manage more active deployments, and insurers price that wider operational footprint accordingly.

General liability costs range from around $25 to $33 per month across eight tech business types. Six sit below the industry average, with monthly rates clustered within $2 of each other. MSPs and telecom businesses send technicians to client sites to install equipment or manage physical infrastructure, giving them a higher on-site exposure profile. MSPs land about 11% above the industry average as a result, while telecom businesses pay about 21% more. The table below shows where each type lands:

Estimated general liability costs range about 41% from the lowest state to the highest, from $24 per month in West Virginia to $34 in California. Four of the five most expensive states or jurisdictions sit in the Northeast or mid-Atlantic corridor: New Jersey, Massachusetts, New York and Washington D.C. each average from $31 to $33 per month. Tech companies in those markets tend to see more client disputes, vendor disagreements and employment claims, and GL pricing reflects that.

Cyber insurance costs run from $126 per month for solo practitioners to $533 per month for businesses with 20 to 49 employees, a 4.2x increase across the full range. Each tier adds more than the last in both dollars and percentage terms, so the cost gap between a small team and a mid-sized one is roughly twice the gap between solo and a small team. The steepest jump is at the top end, where crossing from 19 to 20 employees adds $196 per month, a 58% increase. The table below shows the full distribution.

Estimated cyber insurance costs range from around $112 per month for web designers to $182 per month for MSPs, a 62% spread that reflects differences in how much sensitive data and system access each profession handles. SaaS companies ($172 monthly), software developers ($168 monthly) and MSPs ($182 monthly) cluster near the top because all three manage high volumes of user data, proprietary code or client system credentials, pushing their premiums above the national average. The table below shows where each sub-industry lands.

Estimated cyber insurance costs vary by about 46% across states, from $133 per month in Alaska, Montana, North Dakota and Wyoming to $194 per month in Washington D.C. With monthly rates between $174 and $190, California, New York and Washington state sit near the top alongside D.C., all four among the country's densest tech markets where the concentration of high-value targets, sensitive data and active threat activity pushes cyber pricing above the national average. The table below shows where each state lands.

Workers' comp per-employee costs fall as a tech business grows, from around $47 per month for micro-businesses (less than five employees) to $37 per month for mid-size firms, a 21% drop across the full range. Most tech workers carry a low and uniform injury risk profile because writing code, managing infrastructure and running QA generate few of the physical claims that drive per-employee rates up in other industries. 

The per-employee rate only tells part of the story though: total monthly workers’ comp costs still climb with headcount because a 30-person tech team paying $37 per employee carries a much larger total burden than a four-person team paying $47. The table below shows the monthly and annual per-employee rates for each tier.

Workers' comp costs split sharply by subindustry. Six desk-based tech professions cluster tightly at around $17 per month per employee, while MSPs reach $73 per month and telecom businesses $199 per month, more than 11 times the digital cluster. That gap comes down to physical work: MSP technicians and telecom crews work on-site at client locations, handle equipment and operate in environments where injury risk runs meaningfully higher than at a desk. The table below shows where each subindustry lands.

Workers' comp state costs run from $25 per month per employee in North Dakota to $116 per month in Washington state, a 4.6x spread driven largely by how each state structures its workers' comp system. At that scale, state is one of the more consequential variables in a tech business's total WC cost.
Thirty-five of 50 states sit below the national average, with the lowest-cost markets concentrated in the Midwest and South, where the tech workforce is mostly desk-based and physical injury claims from software shops, SaaS startups and web development teams are uncommon. North Dakota, Indiana, Ohio, Arkansas and South Dakota all land 34% to 46% below the national average. The table below shows where each state lands.

Commercial property costs run from around $10 per month for solo practitioners to $154 per month for businesses with 20 to 49 employees, a 16x increase across the full range. The steepest jump happens at the first hire, where costs rise 250%. A solo developer or freelance designer often works from a laptop with minimal physical assets, while a small tech team in a shared office is insuring workstations, monitors, networking gear and test devices. After that first jump the percentage increases slow at each tier, from 90% to 57% to 52%, though the absolute dollar cost keeps climbing throughout. The table below shows the full distribution.

Estimated commercial property costs range from around $18 per month for video game developers to $80 per month for MSPs, a 4.3x spread across eight sub-industries. Six of those eight sit below the $34 industry average, clustering between $18 and $22 per month. Video game studios, SaaS startups and web-focused businesses run lean on physical assets, insuring laptops and software licenses rather than infrastructure. 

MSPs and telecom businesses are the exception, running 109% to 135% above the industry average because both own and operate physical infrastructure across client locations, including server racks, networking hardware, field equipment and cabling that purely digital operations simply don't carry. The table below shows where each sub-industry lands relative to the national average.

Estimated commercial property costs range from around $30 per month in North Dakota to $41 per month in New York, a 37% difference across states. Location alone won't move CP costs dramatically for most tech businesses, but the pattern is clear: 29 of 51 states sit below the industry average, with the lowest-cost markets concentrated in the Plains and South. 

Tech businesses in those markets often operate from modest office spaces with limited physical assets, and lower property values in those states keep replacement cost estimates and premiums down. North Dakota, South Dakota, Nebraska, Arkansas and West Virginia all run 11% to 12% below the industry average. The table below shows where each state lands.

Estimated commercial auto costs for cleaning businesses run from $119 per month for sedans to $190 per month for vans, though actual premiums will vary based on your specific operation and driving profile. The sedan is the only vehicle type that sits below the industry average as cleaning businesses using lighter vehicles, such as solo residential cleaners or maid services making short local trips, carry less cargo exposure and lower replacement costs.

Use the table below to find your vehicle type and use that as a starting point for your commercial auto cost expectations.

Commercial auto costs for the two tech sub-industries that operate vehicles reflect what their field work actually involves. MSPs average around $114 per month, about 8% below the industry average. A typical MSP technician drives to a client site to swap out a router, troubleshoot a network outage or deploy a workstation, usually in a sedan or compact vehicle with a laptop and a kit of networking hardware.

Telecom businesses average around $132 per month, about 8% above the industry average, because their crews do heavier work: pulling fiber, mounting antennas and running conduit, often across multiple sites in a day, with vans loaded with cable spools and installation equipment. More road time, heavier vehicles and larger cargo loads all push claim exposure higher. The table below shows both monthly and annual estimates.

Commercial auto state costs run from around $62 per month in Pennsylvania to $235 per month in Michigan, a 3.8x spread that makes state one of the most consequential pricing variables for tech businesses operating vehicles. Michigan sits 91% above the industry average, a gap driven largely by the state's no-fault auto insurance system and the higher claims costs it generates.
Alaska, at $204 monthly, reflects the long distances between client sites and higher vehicle repair and operating costs that come with remote geography. Florida ($175 monthly) and Washington D.C. ($168 monthly) reflect the dense urban traffic that MSP and telecom field crews navigate on daily routes, where accident frequency runs higher and claims costs follow.