How much does professional liability insurance cost?
In 2020, small business owners countrywide who purchased a new policy through the Progressive Advantage® Business Program paid an average of $46 per month for professional liability insurance.
While this dollar amount gives you an idea of the cost, your premium will ultimately depend on the characteristics of your specific business.
No two businesses are identical, and their differences are factored into the cost of their professional liability insurance (sometimes referred to as E&O). Learning which attributes of your business that most impact the price of insuring your small business can help you make decisions that save you money.
Professional liability insurance cost factors
Various attributes of your business play a role in determining the cost of your professional liability insurance, including:
Industry/profession – An IT consultant and dietician face different risks because they provide different services. These differences will likely be reflected in insurance premiums.
Location – Where you work can affect your cost. Locations with high claims rates or a large population will usually pay more.
Coverage limits – The amount of coverage you select will influence your rate. More coverage typically means a higher insurance premium.
Number of employees – Your potential for a claim grows with each additional employee. This increase in risk generally results in a higher rate.
Years in business – The number of years you’ve been in business reflects your commitment to upholding the reputation and future of your business. You might see a lower rate as an experienced business owner.
Obtaining professional liability insurance
The most common ways to reduce your professional liability insurance costs include:
- Increasing your deductible amounts
- Having a clean, or minimal, claims history
If professional liability claims are included in your insurance history, you may pay a higher price. You can work toward improving your insurance history by developing your business strategy, contracts, and communication skills to safeguard yourself against future claims.
Progressive Commercial has in-house agents that specialize in small business insurance. We can help you find the best combination between price and protection by tailoring a policy specifically for your business. Call us today or start a quote online.