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Compare in one place: general liability vs professional liability vs BOP. Or price a single coverage — general liability, a BOP, or your state. Or estimate your own premium with our cost calculator.
The average, up front
The average cost of professional liability insurance in 2026 is about $59 a month, or roughly $710 a year, at standard $1 million limits. Typical prices run $30 to $100 a month. That is more than general liability ($45) because an E&O claim is a client’s financial loss rather than a single injury. Your profession, revenue, limits, and claims history set your number — get a free Hiscox E&O quote online in about five minutes.
Professional liability cost at a glance
| How you measure it | Average | Typical range |
|---|---|---|
| Per month | $59 | $30–$100 |
| Per year | $710 | $360–$1,200 |
| Solo consultant or freelancer | $42 | $28–$65 |
| Firm billing $500k+ a year | $105 | $75–$210 |
| Advertised from (Hiscox) | $22.50/mo | — |
Average E&O cost by profession
Professional liability is priced on how expensive your mistakes could be for a client. That is why a design firm pays double what a photographer pays for the same limits.
| Profession | Average / mo | Typical range | What drives it |
|---|---|---|---|
| Architects and engineers | $100 | $70–$165 | Design errors carry construction-sized consequences, so this is the most expensive E&O class. |
| IT consultants | $71 | $45–$115 | Advice risk plus data risk; most add cyber alongside. |
| Software developers | $68 | $42–$110 | Missed specs and integration failures are the common claims. |
| Accountants and bookkeepers | $62 | $38–$100 | Return errors, missed filings, and advice a client relied on. |
| Management consultants | $59 | $36–$95 | The benchmark case: a recommendation blamed for a business outcome. |
| Real estate agents | $59 | $36–$95 | Disclosure and misrepresentation claims dominate. |
| Marketing and PR consultants | $56 | $34–$90 | Campaign performance disputes and missed deadlines. |
| Web designers | $56 | $34–$90 | Scope and delivery disputes; low physical risk. |
| Event planners | $56 | $34–$90 | Vendor failures and event-day errors. |
| Freelancers and solo creatives | $53 | $30–$85 | Cheapest tier: no payroll, modest revenue. |
| Personal trainers and wellness | $53 | $30–$85 | Program-design claims, usually sold with general liability. |
| Photographers | $50 | $28–$80 | Lost footage and delivery failures rather than advice. |
Average E&O cost by state
State matters less for E&O than it does for general liability — there is no weather or premises exposure in an advice claim — but litigation climate still moves the number by roughly 30 percent end to end.
| Rate tier | States | Typical E&O / mo |
|---|---|---|
| Well below average | Iowa, North Dakota, South Dakota | $44–$50 |
| Below average | Alabama, Arkansas, Idaho, Kansas, Kentucky, Maine, Mississippi, Montana, Nebraska, New Hampshire, Oklahoma, Utah, Vermont, West Virginia, Wisconsin, Wyoming | $48–$54 |
| Near average | Arizona, Connecticut, Delaware, Georgia, Hawaii, Indiana, Maryland, Michigan, Minnesota, Missouri, Nevada, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia | $55–$62 |
| Above average | Colorado, District of Columbia, Illinois, Massachusetts, New Jersey, Texas, Washington | $63–$72 |
| Highest | California, Florida, Louisiana, New York | $73–$88 |
What professional liability actually covers
E&O responds when a client says your work or advice cost them money. The claim does not have to be correct — defending a groundless claim is exactly what the policy is for, and defense costs are usually the biggest part of any E&O loss.
- Covered: a missed deadline that costs a client revenue, an error or omission in a deliverable, advice blamed for a bad business result, work a client calls negligent or incomplete, and the legal defense for all of it.
- Not covered: bodily injury and property damage (that is general liability), your own property (commercial property or a BOP), employee injuries (workers’ compensation), and deliberate wrongdoing.
If you are still deciding which policies you need, general liability vs professional liability vs BOP lays all three side by side with pricing.
What moves your price
- Revenue. The single biggest factor. Insurers price the size of the loss a client could suffer, and that scales with the size of the work you take on.
- Profession and services. Design, engineering, financial, and technology advice cost more than creative or administrative work.
- Limits. Moving from $1 million to $2 million typically adds 25 to 40 percent, not 100 percent. Buy what your contracts actually require.
- Claims history and retroactive date. E&O is claims-made: prior acts coverage back to an earlier retroactive date costs more but protects work you have already delivered.
- Contracts and process. Written scopes, sign-offs, and change orders reduce disputes, and some insurers price for them.
How to pay less than the average
- Raise the deductible you can genuinely absorb — often 10 to 15 percent off the premium.
- Match limits to your largest contract requirement instead of buying the highest limit on offer.
- Pay annually rather than monthly; most carriers discount it.
- Buy E&O and general liability from the same insurer — bundling is usually cheaper than two standalone policies.
- Keep continuous coverage. Letting a claims-made policy lapse resets your retroactive date and leaves past work uninsured.
Hiscox vs. a typical E&O insurer
Price is only half of it — how fast you can get covered and produce a certificate matters just as much when a client is waiting. Here is how Hiscox, our recommended option for small service businesses, compares:
| What to compare | Hiscox Our pick | Typical small-business insurer |
|---|---|---|
| Advertised starting price | E&O from $22.50/mo | Market average is $59/mo |
| Getting a quote | Online in about 5 minutes, priced on the spot | Often an agent call-back or an application by email |
| Certificate of insurance | Downloadable right after purchase | Often a next-business-day request |
| Bundling with general liability | Quoted in the same flow | Frequently a second application |
| Financial strength | A (Excellent) from AM Best | Varies by carrier |
| Availability | 49 states + Washington DC (not Alaska) | Varies by state |
Why Hiscox
Hiscox is built for small, service-based businesses, with an A (Excellent) rating from AM Best and online quotes in minutes. Professional liability starts at $22.50 a month, and coverage is available in 49 states plus Washington DC (not Alaska).
Where these numbers come from
Figures on this page are 2026 market benchmarks for small businesses at standard $1 million per-claim limits, consistent with the averages in our small business insurance cost guide and business liability cost guide. Advertised starting prices are Hiscox’s published rates, last checked August 2026. These are planning benchmarks, not quotes — only an insurer can price your business.
Frequently asked questions
What is the average cost of professional liability insurance?
About $59 a month, or roughly $710 a year, for a small business at standard $1 million limits. Most quotes land between $30 and $100 a month. Hiscox advertises professional liability from $22.50 a month.
How much is E&O insurance per month?
Most small businesses pay $30 to $100 a month, averaging $59. Solo consultants and freelancers with modest revenue sit at the bottom of that range; architects, engineers, and higher-revenue firms sit well above it.
Why is professional liability more expensive than general liability?
Because the claims are bigger. General liability claims are usually a single injury or a damaged item, while an E&O claim is a client’s financial loss, which can be the value of a whole project. General liability averages $45 a month against $59 for E&O.
What does professional liability insurance cover?
Claims that your professional work or advice caused a client a financial loss: a missed deadline, an error in a deliverable, incomplete work, or a recommendation blamed for a bad outcome. It pays your legal defense even when the claim is groundless.
What does E&O not cover?
Bodily injury and property damage, which is general liability’s job; damage to your own property, which is commercial property or a BOP; employee injuries, which need workers’ compensation; and anything you did knowing it was wrong.
Does a BOP include professional liability?
No. A business owner’s policy bundles general liability with commercial property. Professional liability is always a separate policy, though most insurers will quote both at once.
How much does E&O cost for consultants?
About $59 a month for a typical solo or small consulting practice, commonly $36 to $95. Revenue is the biggest single factor: a practice billing $500,000 pays materially more than one billing $80,000 for the same coverage.
How can I lower my professional liability premium?
Raise your deductible, buy limits that match your actual contract requirements rather than the largest on offer, keep a clean claims history, pay annually instead of monthly, use written contracts with clear scope, and buy your coverages from one insurer.
Do I need professional liability if I already have general liability?
If clients pay you for expertise, judgment, or a deliverable, yes. General liability explicitly excludes claims about the quality of your professional work, so the two policies do not overlap at all.
Is professional liability insurance tax deductible?
Generally yes. Premiums for ordinary business coverage, including professional liability, are typically deductible as a business expense. Confirm your own situation with a tax professional.
Disclaimer: Informational only, not insurance advice or a substitute for a licensed agent. Coverage descriptions are summaries; policy terms govern. Availability and pricing vary by state and business, and prices are illustrative. Hiscox is available in 49 states and DC, not Alaska.