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.

Let’s break down what professional liability typically costs, what affects the price, and how Simply Business makes getting coverage easier and more affordable.

How Much Does Professional Liability Insurance Cost?

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.

What you pay depends on a few key things, including: your industry, location, number of employees, and how much coverage you choose. But most small businesses will pay $95 or less per month.

These numbers are based on real policies purchased through our site. But getting a great premium isn’t just about the numbers — it’s about working with a partner who understands your business. And because we work with a range of trusted insurers, you’ll see options to match your business, so you can choose a policy that works for you and your budget.

How much will I pay for professional liability insurance?

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Why do prices vary so much?

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 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

State	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.

Location, location, 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.

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.

Professional Liability

Coverage for the Risks Small Businesses Face

Find out what professional liability insurance covers, why you might need it, and how we can help – All in just 60 seconds.

If you’re a professional, you’re very good at what you do, but mistooks can happen [cut] sorry, look, mistakes can happen, that’s one of the reasons behind having professional liability insurance. Professional liability can cover you if a client sues your business for a mistake or negligence, it can help take care of any actual damages as well as legal costs. Without PL insurance those costs could be coming out of your pocket. Even if you’re found to be in the right just paying to defend yourself in court can be expensive, and getting covered is a breeze with us. With just a few minutes online or on the phone, our lightning fast technology can help find you a policy from among the top insurers out there.

Trusted by Over 1 Million Small Businesses Worldwide.

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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.

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.

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