Professional Liability Insurance Cost
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Professional Liability Insurance Cost
As a professional, you’re great at what you do—but no one gets it right 100% of the time. Professional liability insurance, also known as errors and omissions insurance, can help protect your growing business if a client claims you made a mistake. Even if you’ve done everything by the book, a client could still sue you.
This cost guide explains what professional liability typically costs, what affects the price, and how Simply Business makes getting coverage easier and more affordable.
What is Professional Liability Insurance?
Professional liability insurance is coverage when things go wrong. It’s designed to provide coverage if your client claims that your professional services resulted in damages. Sometimes referred to as errors & omission (E&O) insurance, professional liability covers a variety of claims that typically involve human error.
Professional Liability
A one-minute explanation
Find out what professional liability insurance covers, why you might need it, and how we can help – All in just 60 seconds.
How Much Does Professional Liability Insurance Cost?
Most of our small business customers pay under $95 per month. However, the price is tailored for your specific business needs.
Here’s a snapshot of what our customers typically pay for professional liability insurance:
Monthly Professional Liability Insurance Costs1
Under $25
6% of customers
$25 to $95
82% of customers
Over $95
12% of customers
1Data from Simply Business customers who purchased a PL policy from July 1st, 2024 to December 31st, 2024.
How much will I pay for professional liability insurance?
Get a quick estimate in just 3 steps. No obligation. No email required.
The most expensive premiums by trade
The type of work you do plays a big role in your insurance rate. For example, if you’re a surveyor or an architect, you might pay more because there’s more risk involved. But if you’re a photographer or bookkeeper, your risk is generally lower — so your premium may be as well.
Top Trades Median Monthly Premium2
| Trade | Median Monthly Gross Premium |
|---|---|
| Architecture | $158 |
| Business consulting | $47 |
| Digital marketing | $42 |
| Barber / hair stylist services | $42 |
| Massage therapy | $40 |
| Photography | $36 |
| Bookkeeping | $28 |
2Median data from Simply Business customers in these sample trades who purchased a PL policy from July 1st, 2024 to December 31st, 2024.
The most expensive premiums by location
The cost of professional liability insurance can vary based on where you work. In some states, certain professions must carry this type of coverage as part of their professional licensing requirements.
Below are examples of the median cost of professional liability insurance across different states:
Top States Median Monthly Premium3
| State | Median Monthly Cost |
|---|---|
| New Jersey | $45 |
| Florida | $42 |
| New York | $42 |
| Georgia | $38 |
| Pennsylvania | $36 |
| Texas | $35 |
| Washington | $34 |
| California | $33 |
| North Carolina | $33 |
| Virginia | $33 |
3Median data from Simply Business customers in some of the most popular states who purchased a PL policy from July 1st, 2024 to December 31st, 2024.
What Affects the Cost of Professional Liability Insurance?
If you’ve searched online for professional liability insurance, you’ve probably seen a wide range of prices — with no clear reason why. The truth is there isn’t a one-size-fits-all price since the cost depends on several key factors.
We’re dedicated to helping make business insurance easier to understand, so we’ve spelled out some of the particulars, such as:
Your profession
The cost of professional liability insurance can vary based on where you work. In some states, certain professions must carry this type of coverage as part of their professional licensing requirements.
Number of employees
Mistakes happen. And the more employees you have, the more chances there are for something to go wrong. That’s why insurers may ask how many people work for you when calculating your premium.
Policy limits
Higher coverage usually means a higher premium. But it also means more protection if something goes wrong.
What else can affect the price?
- Your claims history. If you’ve had past claims, that might bump up your rate.
- Your experience. Have you been in business for years with no claims? That could work in your favor.
How to Save on Professional Liability Insurance
Reduce your risks
Fewer claims can mean lower rates. That’s why risk management should be a top priority:
- Document your agreements with clear contracts.
- Use checklists and reviews to catch small errors early.
- Train your team to reduce mistakes and avoid potential lawsuits.
- Communicate clearly when problems arise.
- Learn from mistakes and take steps to prevent future issues.
- Strive for excellence and deliver promised services.
Pay monthly
Take advantage of monthly payments to spread the amount over the year.
Shop around
Simply Business provides customized coverage options from top-rated small business insurers — all in just 10 minutes. We do all the legwork so you can sit back, compare quotes, and save.
Trusted by Over 1 Million Small Businesses Worldwide.
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The Simply Business Difference
Simply Business is a digital insurance brokerage. That means we’re not tied to one insurer. Instead, we partner with a range of top-rated carriers and use smart technology to match you with policies that fit your specific business, your risks, and your budget.
Maybe you’re just starting out and want solid protection without overspending. Or maybe you’re growing fast and need coverage that can grow with you. Either way, we’re here to help –– with a choice of affordable policies and small business expertise to help you get the coverage you need.
More Professional Liability Insurance FAQs
What is professional liability insurance?
Professional liability is designed to provide coverage if your client claims that your professional services resulted in damages. Sometimes referred to as errors & omission (E&O) insurance, professional liability covers a variety of claims that typically involve human error.
Why do I need professional liability insurance?
Because mistakes are inevitable and even a single lawsuit could cost your business thousands out of pocket.
What does it cover?
Typically covered
Business mistakes and negligence, and may cover claims involving libel or slander. Even if there’s no error, it can cover you if a client is dissatisfied or claims you failed to deliver on a contract. Along with damages, professional liability can help cover legal costs and administrative fees resulting from these claims.
Typically not covered
Bodily injury to a third party, damaged equipment, medical costs of injuries to third parties, and intentional mistakes or negligence.
Is it required in my state?
It depends on your state and industry. But whether it’s required or not, we strongly recommend having liability coverage.
Is it tax deductible?
Yes – professional liability premiums are usually considered a business expense. But always check with your accountant to be sure.
How fast can I get a quote?
You can get a full quote in about 10 minutes — and an estimate even faster, with just 3 quick questions.
What other insurance might I need?
That depends on your business. You can explore more here.
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