How much does professional liability insurance cost?

In 2023, the national median monthly cost of professional liability insurance was $42 for new Progressive customers. The average rate was $64 per month.

The median price can give a good idea of your professional liability insurance cost. Unlike the average, high or low outliers do not affect the median rate. It is the middle value of all premiums, making it a more accurate reflection of what most small business owners pay.

Many factors influence the average cost of professional liability insurance, sometimes referred to as  errors and omissions (E&O). Learning what features influence your premium can help you save money and make decisions about insuring your small business.

Professional liability insurance cost factors

Your professional liability insurance cost depends on your small business’s risk. Insurance companies consider a variety of factors when determining your cost, including:

Industry and profession

Each industry and profession has specific risks that affect professional liability premiums. For example, an IT consultant and a dietician might have different rates depending on the nature and scope of their work. The services they provide, the size of their clientele, and more can reflect in their cost.


Where you work can affect the average professional liability insurance cost. Places with high claims rates or a large population will usually pay more.

Coverage limits

The amount of coverage you select for your small business will influence your rate. More coverage typically means a higher insurance premium.

Number of employees

More employees increase your risk of a claim. As a result, additional workers can affect how much professional liability insurance costs. Small businesses with employees will typically pay more.

Years in business

Experienced business owners might have a lower professional liability cost than inexperienced ones. This difference is because more years in business can reflect stability and success. Newer businesses could see lower rates over time.

Claims history

Having a clean or minimal claims history shows a commitment to safety. Insurers will take past accidents into account when determining your professional liability rate. You can improve your insurance history by developing your business strategy, contracts, and communication skills to protect against future claims.

How to get cheap professional liability insurance

The most common ways to get affordable professional liability insurance include:

  • Increasing your deductible: Your deductible is the amount you agree to pay before your insurance company covers the rest. Choosing a higher deductible can lower your professional liability premium by increasing your out-of-pocket costs. Be sure to select a deductible you’re comfortable paying if you need to file a claim.
  • Establishing best practices: A clear set of guidelines and procedures can increase your business’s overall safety, especially when providing advice and services to clients. Upholding your duty of care can minimize claims and keep your professional liability rate low.
  • Asking about discounts: Discounts are an easy way to save on your professional liability cost. Your carrier, business type, and location can affect your options. Ask about discounts when getting your quote to learn what savings are available.

An insurance professional can help you learn more about ways to save and tell you how much you can expect to pay.

Discover your professional liability insurance cost

Progressive Commercial’s in-house agents specialize in small business insurance. We can help you balance price and protection by tailoring a professional liability policy for your small business.

Call us today, or start a quote online.

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