*** Quotes will vary by business depending on the size of your business, the state your business is located in, coverage limits chosen, and the risk class your business is associated with.
Factors That Affect the Cost of Professional Liability Insurance
Different factors can impact your professional liability insurance cost, including your:
1. Type of Business
The industry your business is in and the type of work you do can impact your errors and omissions insurance cost
. Your insurer may consider your business higher risk if it deals directly with customers. For example, an accounting firm would likely have a higher professional liability insurance premium than a landscaping company.
To help your small business’ risk management plan, we offer coverage for many industries, including:
Your business’ location can impact your insurance cost, because legal expenses vary between states. If you live in a state where legal costs are high, it may increase your cost of professional liability insurance.
3. Coverage Limits
When you get professional liability insurance coverage, you’ll choose the coverage limits you want in your policy. These limits can range between $250,000 and $2 million. Generally, higher limits will increase your insurance cost.
4. Deductible Amount
You’ll also choose your policy deductible when you get professional liability insurance. Your deductible is the amount you have to pay before your insurance company starts covering costs. So, if you have a low deductible, you’ll have less out-of-pocket costs compared to a high deductible.
5. Number of Employees
The more people you have on your team, the more you can expect to pay for professional liability insurance. This is because there’s more of a chance that someone will make a mistake providing a service.
6. Years in Business
Newer businesses generally have higher insurance costs than more experienced companies. This is because there’s more risk of making a mistake when you’re new.
7. Claims History
Having a history of professional liability claims against your business can increase your professional liability cost. That’s why it’s important to make sure your business has a proper training program to reduce the risk of making mistakes in your services.
How Your Industry Affects the Cost of Professional Liability Insurance
What you pay for professional liability insurance will vary by industry. Insurance companies know that professional mistakes will cost more in certain industries than others. For example, medical professionals may pay more for professional liability insurance compared to an interior designer.
Ways To Save on Professional Liability Insurance Costs
As a business owner, there are a few things you can do to save money and reduce your professional liability insurance cost, including:
- Paying your entire premium upfront
- Having a clean claims history
- Choosing a higher deductible for your policy
- Picking a lower coverage limit for your business
- Having another layer of protection with general liability insurance
- Putting risk management processes in place
Get a Quote for Professional Liability Insurance Cost
If a mistake happens, and a customer sues your business, you’ll want peace of mind knowing your insurer is there for you. You can count on us to help you get the coverages you need at the right price. In fact, we’re backed by over 200 years of experience. To learn more, get a professional liability insurance quote
Last Updated: August 14, 2023
** Quotes will vary by business depending on the size of your business, the state your business is located in, coverage limits chosen, and the risk class your business is associated with.
Divulgaciones adicionales a continuación.