You are reading Part 2 of our 12-part Insurance Agency Authority Series.
An insurance agency with 15 to 30 employees should generally expect a properly secured managed IT environment to cost approximately $125 to $175 per endpoint per month. The exact amount depends on the number of devices, security package, user protection requirements, Tiered Technology Fee, cloud services, and optional risk-management services. An agency with 25 managed endpoints may therefore see an effective monthly investment of roughly $3,125 to $4,375, although the final agreement should be based on the actual environment rather than a simple device calculation.
The 4-Part IT Budget Framework
Insurance agencies should divide their technology budget into four categories:
- Managed operations
- Device security
- User and cloud security
- Projects and optional risk services
This framework helps leadership understand what is included in the monthly agreement and what may require separate planning.
1. Managed Operations
The operational foundation includes the systems, tools, and support processes used to manage the environment every day.
West Texas IT Consulting’s Managed Services Fee is $40 per endpoint per month and includes:
- Datto RMM monitoring and patching
- Proactive alerts and remediation
- IT Glue documentation
- Secure password management
- Unlimited Help Desk support
- Coordinated remote and onsite support when warranted
This fee applies to managed workstations and servers.
Onsite support should not be described as unlimited or free. Some onsite hours may be built into an agreement based on size, but additional onsite requirements, projects, or exceptional work may fall outside the agreement.
2. Device Security
The Essentials security package protects systems and data at the device level.
It may include:
- Antivirus
- Endpoint Detection and Response
- Unified device backup
- Datto SaaS Protection where applicable
The purpose is to reduce risk from malware, ransomware, data loss, and endpoint-level threats.
For insurance agencies handling sensitive client information, device protection is the baseline, not the entire security strategy.
3. User and Cloud Security
The Complete security package extends protection beyond devices to users, identities, email, and cloud services.
It includes the Essentials protections plus:
- Inky email security
- BullPhish ID security awareness training
- Dark Web ID monitoring
- SaaS Alerts
- Microsoft 365 management and maintenance
The Complete package is the standard recommendation for most organizations because attackers often target users and email before they target the device itself.
Insurance agencies preparing for cyber insurance renewal should understand which controls insurers may require before they complete the application.
4. Tiered Technology Fee
Every managed environment also includes a Tiered Technology Fee based on the number of managed devices.
The fee supports:
- 24/7 monitoring infrastructure
- Security operations and alert triage
- Monthly service audits
- Technology Alignment Manager oversight
- Tooling and automation
- Internal escalation paths
- Service management and quality control
Current device tiers include:
| Managed Devices | Monthly Tier Fee |
| 1-9 | $1,050 |
| 10-19 | $1,650 |
| 20-29 | $2,750 |
| 30-39 | $3,850 |
| 40-49 | $4,950 |
| 50-59 | $6,050 |
| 60-69 | $7,050 |
| 70-79 | $8,250 |
| 80-89 | $9,350 |
| 90-99 | $10,450 |
This structure allows a business to add or remove endpoints without renegotiating the entire service agreement. Pricing changes are typically tied to device counts, security selections, and the applicable tier.
Sample Budget for a 22-Employee Insurance Agency
Assume an insurance agency has:
- 22 employees
- 27 managed endpoints
- Microsoft 365
- Complete user and environment protection
- One office in Midland
- Remote employees in Odessa and Big Spring
The budget may include:
- Security package for devices and users
- $40 per endpoint Managed Services Fee
- 20-29 device Tiered Technology Fee of $2,750
- Optional Business Continuity and Disaster Recovery
- Potential project work for upgrades or migrations
The effective per-endpoint investment may fall near the midpoint of the $125 to $175 planning range.
The benefit is not simply support availability. The agreement is designed to create predictable costs, reduce operational risk, improve security, and align incentives with the long-term health of the agency’s environment.
Why a Low Monthly Quote Can Be Misleading
A low quote may exclude important services such as:
- Email security
- Security awareness training
- Microsoft 365 management
- SaaS monitoring
- Backup testing
- Proactive remediation
- Documentation
- Compliance support
- After-hours alert response
- Technology planning
Two providers can quote very different amounts while describing both offerings as managed IT.
Leadership should compare outcomes and responsibilities, not just the monthly total.
Questions to Ask When Comparing Quotes
Ask each provider:
- Is the security package included?
- Are users and email protected, or only devices?
- Is Microsoft 365 managed?
- Are backups monitored and tested?
- Is Help Desk support included?
- Is onsite support limited or billed separately?
- What work is considered a project?
- Is documentation maintained?
- Are monthly audits performed?
- Is technology alignment included?
- What happens when the business adds devices?
- Are compliance tools included or optional?
Optional Services and Risk Acceptance
Some services may be offered separately and accepted or declined as part of the agreement:
- Business Continuity and Disaster Recovery
- Third-party penetration testing through Vonahi
- Compliance Manager
If an agency declines these services, leadership should understand and document the related operational, security, and regulatory compliance risks.
These are not unnecessary add-ons. They address risks that may not be fully covered by the core package.
How the Essentials and Complete Packages Affect the Budget
An agency that chooses Essentials may reduce immediate costs, but the business may retain more risk around:
- Phishing
- Email impersonation
- Credential theft
- User behavior
- Microsoft 365 administration
- Cloud application alerts
The Essentials and Complete security packages address different risk levels, and most insurance agencies need to compare them before selecting a final budget.
Example – Budgeting for Growth
Consider a 17-employee agency planning to grow to 30 employees within three years.
A weak budgeting approach would focus only on the current device count. A stronger approach would include:
This approach avoids surprise expenses and creates a more stable technology roadmap.
What a Good Managed IT Budget Should Accomplish
The budget should help the agency achieve:
- Predictable monthly spending
- Faster and more consistent support
- Better employee productivity
- Reduced downtime
- Stronger security
- Better documentation
- Clear accountability
- Easier growth
- Better regulatory compliance readiness
The correct question is not, “How cheaply can we buy IT support?”
The better question is, “What investment gives the agency the protection, reliability, and ownership it needs?”
How to Evaluate a Permian Basin IT Provider
Insurance agencies in Midland, Odessa, Pecos, Monahans, and surrounding communities should look for a provider that offers:
- Transparent pricing
- Clear service boundaries
- Proactive monitoring
- A defined security stack
- Local service capability
- Strong documentation
- Technology alignment
- Scalable support for growth
A strong Permian Basin IT provider should explain pricing, security, response expectations, and long-term strategy without hiding behind vague service descriptions.
Conclusion
Insurance agencies should plan for approximately $125 to $175 per endpoint per month when evaluating a properly secured managed IT environment. User protection, optional risk services, device count, and the Tiered Technology Fee will influence the final number.
The purpose of the investment is to create predictable operations, stronger security, clearer accountability, and a technology environment that supports employees instead of slowing them down.
Review a managed services approach built around predictable costs, proactive operations, and measurable business outcomes.
