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How much does professional liability insurance cost?

In 2025, the national median monthly cost of professional liability insurance was $50 for new Progressive Commercial customers. The average rate was $69 per month. This coverage is also called errors and omissions insurance (E&O).

The median price is a helpful benchmark because it represents the middle value of all premiums. It gives you a clear idea of what many small businesses pay. Actual costs can vary based on several factors.

Professional liability coverage is important because it helps protect your business from the financial impact of certain claims. Progressive Commercial can connect you with customizable, budget-friendly options you can trust. When you're ready, start a quote to get dependable coverage at a fair price. Prefer to talk with an agent? Give us a call.

Professional liability insurance cost factors

Your professional liability insurance cost depends on your small business's risk. Insurance companies consider the following factors when setting your rate:

Industry and profession

Your profession can have a big effect on your overall risk. For example, an IT consultant and an architect 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 influence their cost.

Location

Your location can influence the average professional liability insurance cost. Prices vary based on state-specific regulations and local claims trends. Areas with more claims or stricter requirements can expect to pay more. Compare coverage by state to learn about laws where you live.

Coverage limits and deductibles

You'll pick coverage limits and a deductible when you get a quote. Both affect the cost of professional liability insurance and play a part in the balance between price and protection.

A coverage limit is the maximum amount your insurer pays toward a covered claim. Policies with higher limits usually cost more because they provide more coverage.

Your deductible is the amount you pay before your insurance kicks in. A higher deductible can lower your premium but be sure you're comfortable with the out-of-pocket cost.

Number of employees

More employees increase your risk of a claim, which means the size of your staff can affect how much professional liability insurance costs. Small businesses with employees 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 down the road.

Claims history

Insurers take past mistakes or issues into account when determining your professional liability rate. Having a clean or minimal claims history shows a commitment to safety. If you've made mistakes in the past, stay positive — you can improve your insurance history with time. Strengthening your business strategy, contracts, and communication skills can help reduce the risk of future claims.

Manage client expectations

Clear conversations about deadlines, deliverables, and other responsibilities can help prevent misunderstandings or mistakes that lead to a claim. Whether you're a business consultant or photographer, you reduce risk when you're on the same page as your customers. This practice can help keep your professional liability rates steady in the long run.

How to get cheap professional liability insurance

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

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 internal guidelines, checklists, 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.
Taking advantage of discounts: Discounts are an easy way to save on your professional liability cost. Your carrier, business type, and location can affect your options. Review available discounts when getting your quote.

Start a quote online to see what you'll pay. You can also speak to one of our insurance experts to learn more about ways to get low-cost professional liability insurance.

Why choose Progressive Commercial for professional liability insurance

Progressive Commercial has committed to working with small businesses like yours for more than 50 years. Our in-house agents can help you tailor a professional liability policy that fits your needs and budget. Whether you're just starting out or are an industry veteran, we can help you safeguard your company with customized coverage.

Call us or  start a quote online today.