The average, up front
Insureon’s small business customers pay a median of $88 a month for professional liability, or $1,051 a year. 43% pay under $75 and 71% under $150. That is more than general liability (a $45 median) 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.
Professional liability cost at a glance
| How you measure it | Median | Typical range |
|---|---|---|
| Per month | $88 | $75–$150 |
| Per year | $1,051 | $900–$1,800 |
| Just you, under $100k revenue | - | $75–$88 |
| Business billing $500k+ a year | - | $88–$150, possibly more |
| The Hartford standalone E&O average (cross-check) | $62 | - |
| Advertised from (Hiscox) | $22.50/mo | - |
Estimates from Insureon’s published medians for its small business customers: 43% pay under $75 and 71% under $150. Size only picks the lower or upper half of that band, since no source publishes prices by revenue. The Hartford figure is that insurer’s own customer average, a different book of business. Not quotes.
Average E&O cost by profession
Professional liability is priced on how expensive your mistakes could be for a client. That is why Insureon’s IT and software customers pay a median of $110 a month for E&O while personal trainers pay $42.
| Profession | Median / mo | Estimated range | What drives it |
|---|---|---|---|
| Architects and engineers | Not published | - | Design errors carry construction-sized consequences, so this is usually among the most expensive E&O classes. |
| IT and software businesses | $110 | $94–$188 | Advice risk plus data risk; most add cyber alongside. Missed specs and integration failures are the common claims. |
| Web and graphic designers | $70 | $60–$119 | Scope and delivery disputes; low physical risk. |
| Real estate agents | $68 | $58–$116 | Disclosure and misrepresentation claims dominate. |
| Handyman services | $67 | $57–$114 | Workmanship disputes, usually bought alongside general liability. |
| Consultants | $62 | $53–$106 | The benchmark case: a recommendation blamed for a business outcome. |
| Marketing consultants | $59 | $50–$101 | Campaign performance disputes and missed deadlines. |
| Accountants and bookkeepers | $45 | $38–$77 | Return errors, missed filings, and advice a client relied on. |
| Event planners | $42 | $36–$72 | Vendor failures and event-day errors. |
| Personal trainers | $42 | $36–$72 | Program-design claims, usually sold with general liability. |
| Massage therapists and beauty salons | $42 | $36–$72 | Treatment and service complaints, usually sold with general liability. |
| Photographers | Not published | - | Lost footage and delivery failures rather than advice. |
Estimates from Insureon’s published E&O medians for each business type, national, business of two to five people. Insureon publishes no E&O figure for architects, engineers or photographers. Revenue and limits move these as much as profession does. Not quotes.
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 it. Insureon publishes no E&O figures by state, so the ranges below take the national E&O median and adjust it by how far each state’s published general liability median sits from the national $45.
| State | State general liability median | Estimated E&O / mo |
|---|---|---|
| Maine | $59 | $98–$197 |
| Florida | $55 | $92–$183 |
| Colorado | $54 | $90–$180 |
| Alabama | $53 | $88–$177 |
| Pennsylvania | $53 | $88–$177 |
| Georgia | $47 | $78–$157 |
| National | $45 | $75–$150 |
| New York | $44 | $73–$147 |
| Texas | $43 | $72–$143 |
| California | $42 | $70–$140 |
| Ohio | $42 | $70–$140 |
| Illinois | $40 | $67–$133 |
Estimates from Insureon’s published medians: the national E&O median ($88) adjusted for each state’s general liability median, business type not specified, business of two to five people. Not quotes. The full general liability and BOP picture by state is in our average business insurance cost by state guide. Hiscox writes coverage in 49 states plus Washington DC (not Alaska).
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. Higher limits cost more, though far less than proportionally; no source we use publishes E&O prices by limit. 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 to one you can genuinely absorb, which lowers 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 part of the comparison: how you get a quote, and how quickly you can show a client a certificate, matter too. The table below sets Hiscox, the insurer we have a referral partnership with, against a typical small-business insurer. A direct online insurer suits a solo professional who knows the cover a contract asks for; a broker or local agent can compare several insurers, which suits firms with larger engagements or specialist work.
| What to compare | Hiscox Referral partner | Typical small-business insurer |
|---|---|---|
| Advertised starting price | Shown in the median table above | Insureon customer median is $88/mo |
| Getting a quote | Online form, price shown on screen | Online, through a broker, or through an agent |
| Certificate of insurance | Issued once the policy is in force | Issued by the insurer or agent on request |
| Bundling with general liability | Quoted together online | Often quoted together; varies by insurer |
| Financial strength | A (Excellent) from AM Best | Varies by carrier |
| Availability | 49 states + Washington DC (not Alaska) | Varies by state |
Hiscox column reflects its advertised pricing and AM Best rating, last checked August 2026. Hiscox is our sponsored partner: see the disclosure at the top of this page.
Where these numbers come from
Figures on this page are Insureon’s published medians for its small business customers, most of whom have fewer than 5 employees and under $100k in revenue. The ranges start from Insureon’s published median for each business type and adjust it for the state, the same way our cost estimator works. The Hartford figure is that insurer’s own customer average. See also 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?
Insureon’s small business customers pay a median of $88 a month, or $1,051 a year. 43% pay under $75 and 71% under $150.
How much is E&O insurance per month?
Insureon’s small business customers pay a median of $88 a month, and 71% pay under $150. Solo consultants and freelancers with modest revenue sit at the bottom; 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. Insureon’s customers pay a median of $45 a month for general liability against $88 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?
Insureon’s consultant customers pay a median of $62 a month, and our estimator shows $53 to $106 for a practice of two to five people. 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.
Get a real price
These figures are estimates. Only an insurer can give you a real price.
Direct online insurer
Fill in a form and see a price on screen. Best for simple businesses.
Example: Hiscox. Rated A (Excellent) by AM Best. Sold in 49 states and DC.
Hiscox pays us when you get a quote. It does not change your price.
Online broker or marketplace
One form, several insurers compared. Best if you want more than one price.
Local independent agent
Talk it through by phone or in person. Best for higher-risk businesses.
Find an independent agent near you (free directory, no payment to us)
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.