How much does professional liability (E&O) insurance cost?

Three insurers, three very different numbers

Professional liability has no official price statistic. The figures below come from each company’s own cost page and describe only its own customers.

Insurer- and broker-reported figures from each company’s own customers, as published on its website; not a random sample of all businesses. Figures are rounded as published.

The Hartford publishes a third set of figures that is not in the table above because it measures something else. Its headline says small businesses “typically pay about $76 a month” for a standalone policy. Its breakdown is labelled “Avg. Minimum Monthly Premium”, which The Hartford does not define further; the label describes a starting price, not the average paid⁠³.

Source: The Hartford⁠³. These are carrier-reported minimum premiums, not averages of what customers paid.

Why NEXT reports $25 and Insureon reports $88

Both figures are medians: half the customers pay less, half pay more. Insureon’s page uses the word “average”, but it says its figures are “calculated using the median cost of policies sold”⁠¹. Insureon’s median is 3.5 times NEXT’s (our calculation: 88 ÷ 25 = 3.52). The published distributions show where the customers sit:

• NEXT: 47% of customers pay $25 a month or less and 73% pay $45 or less. Only 10% pay more than $100⁠².
• Insureon: 43% of customers pay less than $75 a month and another 28% pay $75 to $150. Annual premiums run from about $400 to over $7,000⁠¹.

Several things explain the gap. The published pages support each one, but no page quantifies them:

1. Who buys

   NEXT’s figures cover its active U.S. customers who bought professional liability in the previous 12 months⁠². Its profession list includes retail stores, travel agents and videographers alongside engineers, and it says prices “can start as low as $19 per month for some low-risk professions”⁠². Insureon’s figures come from 100,000 small-business owners who bought through Insureon, most with fewer than five employees, revenue from under $50,000 to over $200,000, and five years or less in business⁠¹. A book weighted toward low-risk sellers and service providers gives a lower median than one weighted toward consultants, designers and tech firms.

2. The median sits below every profession average NEXT lists

   NEXT’s profession averages run from $40 (accountants) to $100 (engineers)⁠², yet its median is $25. NEXT also says the 73% of its customers paying $45 or less include consultants, accountants, real estate agents, architects and engineers⁠². Both statements fit only if a minority of high premiums pulls each profession’s average well above what most of its customers pay. Compare a profession average with another publisher’s profession figure, not with NEXT’s $25.

3. Limits and deductible

   Insureon says 56% of its customers buy $1 million per claim and $1 million aggregate, 11% buy $2 million/$2 million, and the average deductible is $2,500⁠¹. NEXT does not publish the limits or deductibles behind its median⁠².

4. Standalone policy or endorsement

   Professional liability can be added as an endorsement to a general liability policy or BOP⁠¹. The Hartford’s endorsement minimum ($41) is a third below its standalone minimum ($62)⁠³. Neither NEXT nor Insureon says how many of its policies are endorsements.

5. Data dates

   NEXT’s data was last updated in August 2025 and Insureon’s page in March 2026⁠¹⁠². Neither company gives a trend, so the date gap cannot be quantified.

By profession

Insurer- and broker-reported figures from each company’s own customers, as published on its website; not a random sample of all businesses. Figures are rounded as published.

The ranking is broadly consistent across publishers even though the levels are not. Building design is at or near the top everywhere. NEXT reports $100 a month for engineers, its highest figure, and $80 for architects, below its $90 for IT consultants and software developers⁠²; Insureon reports $144 for architects and engineers⁠¹, and The Hartford’s minimum is $239⁠³. Accountants are cheaper: $40 at NEXT, $42 at Insureon (combined with photographers) and a $73 minimum at The Hartford⁠¹⁠²⁠³. Insureon gives the reason as the size of the loss a mistake can cause, such as “a building is flawed or unsafe”⁠¹. NEXT says it places each business in a risk category by NAICS code, based on “how often people in similar jobs face claims”⁠².

By state

Insurer- and broker-reported figures from each company’s own customers, as published on its website; not a random sample of all businesses. Figures are rounded as published.

Insureon’s state medians range from $78 a month (North Carolina) to $99 (Virginia)⁠¹. That 27% spread (our calculation: 99 ÷ 78) is much smaller than the gap between professions. Each state median also reflects the mix of professions that buy through Insureon there. The Hartford attributes location differences to legal costs, which vary between states⁠³. NEXT says more populous areas tend to pay more⁠².

How a claims-made policy decides what is covered

Professional liability is commonly written on a claims-made form: the Louisiana group policy, Oregon’s lawyers’ plan and The Hartford’s professional liability example all are⁠⁴⁠⁷⁠¹¹. The trigger affects the cost of switching insurers, retiring or closing a firm. The Louisiana real-estate group policy, a CNA form the state commission publishes, shows the standard mechanics⁠⁷. It pays a claim only if:

• the claim is first made against you and reported during the policy period, or during an extended reporting period, and
• the error was committed after the retroactive date, and
• before the policy began, you had no basis to believe the error might lead to a claim⁠⁷.

The Hartford gives an example: coverage starts in January 2021 with a November 2019 retroactive date, and a February 2021 lawsuit over a December 2019 mistake is covered⁠⁴. If the retroactive date were January 2021, it would not be.

Two consequences matter for cost:

• Keep the retroactive date when you renew or switch insurers. A new policy that resets the retroactive date to its start date leaves every earlier engagement uninsured. The Hartford calls insurance for work before the policy started “prior acts coverage”⁠⁴.
• Plan the tail before the policy ends. An extended reporting period (ERP, or “tail”) covers claims reported after the policy ends, for work done while it was in force. The Hartford says an extended reporting period generally lasts 30 to 60 days⁠⁴. The Louisiana policy gives 90 days automatically when a licensee retires, goes inactive or lets the license expire⁠⁷. Longer tails cost extra.

What a tail costs: one published schedule

The Louisiana group policy prints its optional tail prices as a percentage of the expiring annual premium, including endorsements⁠⁷:

Source: policy declarations, item 12⁠⁷. The tail must be bought within 90 days after the policy ends, its premium is fully earned, and it does not restore or increase the limits⁠⁷.

Other policies set their own percentages, so check the declarations page. Under this schedule, a multi-year tail costs a multiple of one year’s premium, paid at once when you leave. A firm closing a practice with a $1,051 annual premium (Insureon’s median⁠¹) and the same schedule would pay $3,153 for five years (our calculation: 1,051 × 3). That is an illustration of the schedule only, not a quote.

Oregon’s mandatory lawyers’ program does it differently. Tail coverage starts automatically when a lawyer leaves private practice, continues indefinitely and costs nothing. Its lifetime limit is whatever was unused in the last covered year: $300,000 plus the $75,000 defense allowance for 2026⁠¹¹.

Defense costs: inside or outside the limit

Where defense costs sit matters as much as the headline limit.

• Outside the limit: the Louisiana group policy pays claim expenses “in addition to” its limits, except for discrimination claims⁠⁷.
• Inside the limit, with a separate allowance: Oregon’s lawyers’ plan is $300,000 per claim and $300,000 a year “inclusive of claims defense and indemnity costs,” plus a $75,000 allowance available only for defense⁠¹¹.

With defense inside the limit, every dollar spent on lawyers reduces what is left for a settlement. In our illustration, a $1 million/$1 million policy that spends $200,000 defending a claim has $800,000 left for damages, and for every other claim that year under the aggregate. Read the limits section of the policy before comparing two quotes with the same headline limit.

The Louisiana form also has a consent clause with a cost attached. The insurer will not settle without your consent. If you refuse a settlement the insurer and claimant accept, its payment is capped at the rejected settlement amount plus defense costs incurred up to then⁠⁷.

Who must carry it: laws, licenses and contracts

No general law requires businesses to buy professional liability. Specific licensing laws and contracts do. These are the rules we confirmed at the official source:

Scroll the table sideways to see every column.

Oregon’s fund says it is the only U.S. program that provides mandatory coverage through the bar, and Idaho is the only other state that requires lawyers to carry malpractice coverage⁠¹⁰. The Louisiana commission sells a “conformity endorsement” for licensees also licensed in other states with mandatory insurance⁠⁵, so Louisiana and Iowa are not the only real-estate examples.

State-run group programs as price benchmarks

Where a commission buys a group policy, the premium is published, so it is one of the few public prices for E&O. Louisiana’s group policy costs $149 a year ($142 premium plus a $7 commission transaction fee) for $100,000/$300,000⁠⁵. For higher limits, the program sells increased-limit endorsements whose price depends on activity and claims⁠⁵:

Source: Louisiana Real Estate Commission⁠⁵. The commission’s page states totals of $275, $325, $350 and $413. Each is $13 less than the group premium plus the endorsement price, so check the total with the program administrator.

The pattern is typical of liability pricing: quintupling the per-claim limit from $100,000 to $500,000 costs $214 more for a residential, claims-free licensee, which is 144% more than the base premium (our calculation: 214 ÷ 149). Commercial activity and recent claims add $63 at that limit ($277 − $214). Premiums are also prorated by month of purchase, down to $19 for December⁠⁵.

Contract requirements

Outside these licensed fields, a client contract is what sets the E&O limit. Three public-sector examples:

• Rhode Island state contracts: where the standard requires professional liability, the minimum is $2,000,000 per occurrence and $2,000,000 aggregate. Technology errors and omissions requires $5,000,000 and $5,000,000⁠¹³.
• City of San Diego consultant contracts: professional liability “appropriate for Contractor’s profession” with at least $1 million per occurrence or claim and $2 million aggregate⁠¹⁴.
• California state contracts: the Department of General Services lists professional liability among the additional coverages a contract may require. It tells bidders to send the requirements to their insurer before bidding⁠¹⁵.

General liability does not fill the gap. San Diego’s sample additional-insured endorsement excludes injury “arising out of an architect’s, engineer’s, or surveyor’s rendering of or failure to render any professional services”⁠¹⁴. Insureon notes that therapists and other healthcare professionals often buy $1 million/$3 million limits to meet requirements from medical networks, hospitals or state law⁠¹. Physicians’ coverage is covered in medical malpractice.

How insurers rate a professional liability policy

We found no public rating manual for small-business E&O comparable to ISO’s general liability program. The published cost pages and the programs above name the same factors:

1. Profession or class

   This is the largest factor in every publisher’s data⁠¹⁠²⁠³. NEXT assigns a risk category by NAICS code⁠².

2. Revenue and headcount

   Insureon lists business income and number of employees as factors⁠¹. NEXT says a one-person IT consultancy pays less than a 10-employee firm⁠².

3. Limits

   Typical limits run from $250,000 to $2 million⁠¹⁠³, and higher limits cost more. Louisiana’s endorsement prices above show how steeply.

4. Deductible (retention)

   Insureon customers average $2,500⁠¹. NEXT says a higher deductible can lower the monthly rate⁠². In the Louisiana form, the deductible applies to damages, not defense⁠⁵⁠⁷.

5. Claims history

   NEXT and Insureon both list it⁠¹⁠². Louisiana’s endorsement price rises with a claim in the past five years⁠⁵.

6. Location and contract terms

   Legal costs vary by state⁠³, and a client’s limit requirement can force a more expensive policy⁠².

Two pricing features are specific to claims-made coverage: the retroactive date sets how much past work the policy covers, and the tail is priced separately when you leave (see above). The Hartford notes that occurrence policies can cost more than claims-made ones⁠⁴.

Market trend

The main market surveys do not report small-business professional liability as a separate line. The closest measures for Q2 2026:

• CIAB (member brokers, average premium change at renewal): directors and officers −2.1%, medical malpractice +1.8%, and insurance brokers’ own E&O +0.6%⁠¹⁶.
• Marsh (mostly larger client accounts): U.S. financial and professional lines +1%⁠¹⁷.

Neither figure measures a small consultant’s E&O renewal, but neither is close to the increases the same surveys report for umbrella (CIAB +5.3%, Marsh +15% risk-adjusted) or U.S. casualty (Marsh +7%). The market trends page has every series.

What lowers the cost, and what only looks cheaper

• Match the class to the work. NEXT says the business classification sets the baseline price⁠², so check that the class on the quote describes your main work.
• Buy the limit the license or contract requires. The examples above run from $100,000/$300,000 (Idaho lawyers) to $2 million (Rhode Island’s standard professional liability minimum) and $5 million (its technology E&O minimum)⁠¹²⁠¹³. Louisiana’s endorsement prices show what each step up costs⁠⁵.
• Raise the deductible only to an amount you can pay. Insureon notes the policy will not respond until you pay it⁠¹.
• Compare endorsement and standalone pricing. The Hartford’s endorsement minimum is $21 a month below its standalone minimum⁠³. Check whether the endorsement’s limit is shared with the general liability policy before relying on it.
• Do not trade away the retroactive date. A cheaper quote with a new retroactive date leaves all your past work uninsured⁠⁴⁠⁷.
• Price the tail before you need it. At 100% to 300% of the expiring premium in the Louisiana schedule⁠⁷, a tail is a closing cost to budget for, not an optional extra.
• Read where defense sits. A policy with defense inside a $1 million limit is less coverage than one with defense outside it, at the same headline limit⁠⁷⁠¹¹.

Sources

1. 1
   Insureon, How much does professional liability insurance cost? (updated March 24, 2026) Checked 13 Oct 2026 · Back to text ↑
2. 2
   ERGO NEXT, How much does professional liability insurance cost? (data updated August 2025) Checked 13 Oct 2026 · Back to text ↑
3. 3
   The Hartford, Professional liability insurance cost (last updated April 11, 2025) Checked 13 Oct 2026 · Back to text ↑
4. 4
   The Hartford, Claims-made vs. occurrence policy Checked 13 Oct 2026 · Back to text ↑
5. 5
   Louisiana Real Estate Commission, Errors and omissions (group program and prorated premiums) Checked 13 Oct 2026 · Back to text ↑
6. 6
   Louisiana State Legislature, La. R.S. 37:1466, Errors and omissions insurance; mandatory for all licensees Checked 13 Oct 2026 · Back to text ↑
7. 7
   Louisiana Real Estate Commission, Louisiana real estate group E&O declarations and policy, group policy period 2024 (Continental Casualty Company) Checked 13 Oct 2026 · Back to text ↑
8. 8
   Iowa Legislature, Iowa Code 2026, section 543B.47, Insurance requirement Checked 13 Oct 2026 · Back to text ↑
9. 9
   Colorado Revised Statutes (via Colorado.Public.Law), C.R.S. 12-10-608, Errors and omissions insurance (appraisers) Checked 13 Oct 2026 · Back to text ↑
10. 10
    Oregon State Bar Professional Liability Fund, Who we are Checked 13 Oct 2026 · Back to text ↑
11. 11
    Oregon State Bar Professional Liability Fund, Coverage plan: what is my coverage? Checked 13 Oct 2026 · Back to text ↑
12. 12
    Idaho State Bar, 2018 malpractice coverage requirement: general information (Idaho Bar Commission Rule 302(a)(5)) Checked 13 Oct 2026 · Back to text ↑
13. 13
    Rhode Island Office of Accounts and Control, Risk Management, Standard insurance requirements (contracts and third-party vendors) Checked 13 Oct 2026 · Back to text ↑
14. 14
    City of San Diego, Purchasing & Contracting Insurance Checklist (rev. Jan. 6, 2017) Checked 13 Oct 2026 · Back to text ↑
15. 15
    California Department of General Services, Contract Insurance Requirements: when doing business with California state government Checked 13 Oct 2026 · Back to text ↑
16. 16
    The Council of Insurance Agents & Brokers (CIAB), Commercial Property/Casualty Market Index, Q2 2026 Checked 13 Oct 2026 · Back to text ↑
17. 17
    Marsh, Global Insurance Market Index: US insurance rates, Q2 2026 Checked 13 Oct 2026 · Back to text ↑

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