The Cost of Professional Liability Insurance
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Professional liability insurance—also referred to as errors and omissions insurance or E&O Insurance—protects your business if you make professional mistakes or errors in your work. If an engineer draws plans for a house and an error is made, it can impact the structural integrity of the home and costs thousands of dollars to repair. Likewise, if a dietician recommends a dietary plan that inadvertently harms their client, they could be held liable. That's why your small business needs to obtain the right business insurance to safeguard yourself from liability claims.
Insurance costs for errors and omissions insurance will be impacted by some of these factors:
Most small businesses pay between $500–$1,000 annually for professional liability insurance, landing the average around $750 a year. Progressive claims that their average customer pays $46 per month for coverage. Hiscox shows the average yearly price professional liability insurance for an IT consultant as $441 and for business consultants the policy can cost $779. A smaller percentage of businesses pay above or below that amount. These prices are typically for policy limits of $1 million per claim and $1 million maximum during the lifetime of the policy (usually per year).
The higher the policy limit for your professional liability insurance, the more you'll pay for the policy.
The policy limits and the amount of coverage necessary are determined based on your specific business. We recommend speaking with a licensed insurance agent to determine the coverage limits you need and what you can expect to pay for errors and omissions insurance.
Small business owners can do a few things to decrease their business insurance costs:
Tivly strives to serve small and medium-sized businesses and help you get the insurance coverage you need. Don't risk not having insurance coverage. Call us at 877-907-5267 and we will help you find the insurance coverage you need at a cost you can afford.
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