Professional Indemnity Insurance Cost

Professional indemnity insurance, also known as errors and omissions coverage (E&O) or professional liability insurance, provides financial protection when clients claim your professional services caused them financial harm. It costs $931 annually, 23% lower than the average cost of business insurance.

Costs range from $383 to $2,316 annually, depending on what you do and where you're based. Mortgage brokers pay the highest rates because they handle large financial transactions where mistakes cost clients money. Home-based consultants pay the lowest rates since their work involves smaller contracts with less financial risk.

We found that home-based businesses pay an average of $37 monthly. While that seems like affordable professional indemnity insurance, what you do for work affects your costs substantially. Mortgage brokers pay almost five times more for the same coverage.

The difference in professional liability insurance costs comes down to lawsuit risks and claim sizes. If you handle large financial transactions, small errors cost your clients over hundreds of thousands of dollars. Home-based consultants work with smaller contracts where mistakes carry much less financial impact.

Note: We contacted insurers across all 50 states to get quotes for small businesses with three employees in 79 industries. All quotes were for standalone professional indemnity policies with these limits: $1 million per claim and $2 million total coverage. These rates show what similar businesses pay, but your actual quote depends on your specific business circumstances, claims history and chosen insurance provider.

Where you operate affects your professional indemnity insurance cost. Small business owners in North Carolina pay the lowest rates at $807 annually, while those in New York spend 34% more for similar coverage.

In some states, lawyers charge more, juries award higher damages and court cases take longer. If you're based in Pennsylvania or Nevada, you're dealing with these elevated costs. You still find the best business insurance rates without giving up quality coverage.

Note: We contacted insurers across all 50 states and used the same business profile for each quote to compare how location affects pricing. Professional indemnity insurance requirements vary by state, and your profession may be legally required to carry this coverage. Check with your state's professional licensing board for specific requirements.

The average cost of professional indemnity insurance is $32 to $193 monthly, based on your profession and location. Industry risk and business size affect what you pay. To find more affordable coverage, compare quotes, adjust your deductible and bundle coverage types.