How Much Does Professional Liability Insurance (PL) Cost?
Simply Business customers typically pay a median of $42 per month** for professional liability (PL) insurance. Your professional liability insurance cost will depend on the type of work you do, your location, policy limits, and claims history.
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What is Professional Liability (PL) Insurance?
Professional liability (PL) insurance — also known as errors and omissions (E&O) — is coverage generally for honest mistakes. A typo in a contract. A missed deadline. Inaccurate advice.
Even if you’ve done nothing wrong, a client can sue you. But professional liability insurance can help protect your business against claims of negligence, misrepresentation, or poor results so a single bad outcome doesn’t put your whole business at risk.
This guide breaks down what professional liability insurance typically costs, what drives the price, and how to get a quote through Simply Business.
What Factors Affect Your Professional Liability (PL) Insurance Cost?
There’s no one-size-fits-all professional liability insurance cost — here are some of the factors that may affect your rate:
Industry
The kind of work you do is one of the biggest drivers of your rate. An architect or business consultant might pay more, since a single professional mistake could result in substantial financial loss for a client. A photographer or bookkeeper generally carries lower risk — so their premium may be lower as well.
Median Monthly PL Premium by Industry/Profession
| Profession | Median Monthly Cost1 |
|---|---|
Beautician/cosmetology services | $42 |
| Bookkeeping | $27 |
| Business consulting | $53 |
| Life / career / executive coaching | $28 |
| Notary services | $28 |
| Other consulting services | $42 |
| Teaching or tutoring | $42 |
1Data from Simply Business customers who purchased a professional liability policy from July 1, 2025 to December 31, 2025. The median costs shown are for illustrative purposes only; actual premiums vary by state, coverage limits, and individual business risk.
Location
Where you work matters. State laws on liability and negligence vary and professional liability insurance rates reflect that.
Median Monthly PL Premiums by State
| State | Median Monthly Cost2 |
|---|---|
| California | $33 |
| Florida | $42 |
| Georgia | $38 |
| Illinois | $42 |
| New Jersey | $46 |
| New York | $42 |
| North Carolina | $33 |
| Pennsylvania | $33 |
| Texas | $38 |
| Virginia | $34 |
| Washington | $33 |
2Data from Simply Business customers across some of our most common states, who purchased a professional liability policy from July 1, 2025 to December 31, 2025. The median costs shown are for illustrative purposes only; actual premiums vary by state, coverage limits, and individual business risk.
Policy limits
Higher coverage usually means a higher premium, but it also means more protection if something goes wrong. A $1 million policy is generally considered solid protection for most small business claims without paying for more coverage than you need.
Claims history
A clean claims history is one of the best ways to keep your professional liability insurance cost low. Small businesses with years of claim-free coverage are viewed as lower risk by insurers and often receive the most competitive rates.
How To Save on Professional Liability (PL) Insurance
- Reduce your risks
Fewer claims can mean lower rates. That’s why risk management should be a top priority:
→ Use standardized contracts.
→ Document client communications.
→ Use quality assurance (QA) checklists and reviews to catch small errors early.
→ Train your team to help reduce mistakes and avoid potential lawsuits.
→ Communicate clearly when problems arise.
→ Learn from mistakes and take steps to prevent future issues. - Pay annually
Some insurance carriers offer a discount if you pay your annual premium in one lump sum rather than breaking it down into monthly installments. - Shop Around
Simply Business provides customized coverage options from top-rated small business insurance providers — all in just 10 minutes. We do the legwork so you can sit back, compare quotes, and save.
Simply Business gives you access to top carriers:
What Some Customers are Paying for Professional Liability Insurance2
Maryland
Tax preparer
$33/month
- Sole proprietorship
- Limit: $500,000
- Deductible: $1,000
- Quoted May 2026
Virginia
Real estate agent
$96/month
- Sole proprietorship
- Limit: $1M
- Deductible: $1,000
- Quoted May 2026
Georgia
IT consultant
$52/month
- Limited Liability Company (LLC)
- Limit: $250,000
- Deductible: $500
- Quoted May 2026
2These examples are real insurance quotes generated on the dates above. They are for illustration purposes only. Your coverage options and pricing may differ based on the information you provide us about your particular business, the state you operate in, the number of employees, and other factors.
Professional Liability FAQs
Professional liability (PL) insurance, also called errors and omissions (E&O) insurance, typically covers legal defense costs and potential settlement payouts if a client sues your business for certain professional mistakes, including:
- Negligence or alleged negligence: claims of mistakes, poor service, missed deadlines, or a lack of proper care.
- Poor results: If your business doesn’t deliver work as promised, or even if the results aren’t what your client thought or hoped they would be, a customer could sue you to recover any losses they experienced as a result.
- Employee mistakes: claims related to mistakes or negligence by your employees.
Professional Liability (PL) generally won’t cover:
- Intentional mistakes and omissions
- Property damage
- Client bodily injuries or physical property damage (typically could fall under general liability).
- Employee injuries (typically handled by workers’ comp).
Yes. COIs for most policies are available as soon as you purchase your coverage. With Simply Business, you can download and share your COI through your online account or right from your phone. So, if a client needs proof of professional liability or E&O coverage before signing a contract, you can pull your COI and send it over in minutes.
The term professional liability (PL) insurance is often used interchangeably with errors and omissions insurance (E&O), and for the most part, they’re very similar. Depending on your profession or line of work, one term may be used more commonly than another, but both can protect businesses against claims of negligence or mistakes.
General liability insurance typically covers physical risks, such as third-party bodily injury or property damage. Professional liability insurance covers professional risks, specifically the financial losses a client might suffer due to a mistake, omission, or failure to deliver your professional services.
Generally, most states may not require professionals to carry E&O insurance. However, certain professional licensing boards may require it to maintain your credentials and some clients may ask you to show proof of coverage before signing a contract.
Professional liability insurance isn’t just for consultants and advisors. Any business paid to deliver a professional service can be sued if a client believes the work fell short — a photographer who misses key wedding shots, a designer whose work causes a client to miss a launch, a software developer accused of a costly coding oversight. If clients rely on your skill or expertise to get a result, professional liability coverage is worth considering.
It may help cover claims related to a breach of contract, provided the breach results directly from professional mistakes, oversight, or negligence.
Professional liability insurance is typically a “claims-made” policy, meaning the policy must be active when the claim is filed, and the alleged mistake must have occurred on or after your policy’s retroactive date. To ensure your past work remains protected, look for your policy’s retroactive date, which marks the earliest point in time an incident can occur and still be eligible for coverage.
Yes. Premiums for your professional liability (PL) policy can generally be considered a tax-deductible business expense. Keep records of your payments throughout the year so they’re easy to claim at tax time, and always check with your accountant or tax professional to confirm what applies to your specific business.
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**Median cost figure is based on the costs of policies purchased by Simply Business customers (e.g., General Liability data is used for General Liability estimates) from July 1, 2025 – December 31, 2025.
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