A 10 to 50 person insurance agency should plan on $175 to $350 per user per month for managed IT and cybersecurity, or $21,000 to $42,000 a year for 10 users, $52,500 to $105,000 for 25 users, and $105,000 to $210,000 for 50 users. Then add a separate line for planned projects, such as replacing aging equipment or moving off an office server, quoted at a flat rate before work begins.
The biggest budgeting mistake isn't spending too much or too little. It's treating IT as a surprise instead of a plan. Here's how to build a budget you won't have to explain away halfway through the year.
This is the monthly fee. With us, it includes live phone support, 24/7 managed detection and response through a human-staffed Security Operations Center, security awareness training, Microsoft 365 backup, restore-tested backups, patching, and technology planning reviews. Budget it per licensed user.
Your agency management system, raters, and other software vendors bill separately. Keep their maintenance agreements current: lapsed vendor support is one of the most common reasons a "covered" problem suddenly isn't.
Equipment replacement, a server retirement, a new office, or a phone system change. We quote every project at a flat rate up front, so it goes into the budget as a known number, not an hourly estimate.
New producers, a second location, or an acquisition. Each new licensed user adds to the monthly line, so hiring plans belong in the IT conversation.
| Agency size | Managed IT, monthly | Managed IT, annual |
|---|---|---|
| 10 licensed users | $1,750 to $3,500 | $21,000 to $42,000 |
| 25 licensed users | $4,375 to $8,750 | $52,500 to $105,000 |
| 50 licensed users | $8,750 to $17,500 | $105,000 to $210,000 |
Where an agency lands in the range depends on service level, number of offices, whether there's an on-site server, and how complex its systems are. See what managed IT costs for a 10 to 50 person agency for the full breakdown.
For more on setting priorities, read how to build an IT budget when everything feels like a priority and the IT budget mistakes hiding until the bill arrives.
Ask every provider how increases work. Ours aren't a fixed percentage. Any change is reviewed during your annual technology planning session and reflects real vendor and licensing cost changes. A well-maintained, low-maintenance environment may see no increase at all.
We meet with each client quarterly, and one of those meetings each year becomes a detailed annual planning session. Together we look at what's aging, what's no longer supported, what the agency's growth plans are, and what the next year's technology budget should be. Projects come out of that session with flat-rate quotes, so the owner walks away with real numbers instead of guesses.
See how we support independent insurance agencies across Ohio and Indiana.
Planning next year's budget? Book a 10-minute discovery call. Call us at (419) 678-2083 or visit www.TomTechToday.com/discoverycall to schedule yours.