Our research shows that professional indemnity insurance costs $78 monthly ($931 annually). This rate applies to our base profile: small businesses with three people (including the owner), $150,000 payroll, $300,000 revenue, existing coverage and $1 million per occurrence with $2 million aggregate limits. Your actual premium depends on your industry and location, which we'll explore further.
Professional Indemnity Insurance Cost
Professional indemnity insurance costs average $78 monthly ($931 annually) for small businesses, but rates vary by industry and location.
Explore affordable professional indemnity insurance rates below.
Select your industry
Updated: August 18, 2025
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Key Takeaways
Professional indemnity insurance costs range from $32 to $193 monthly, depending on what you do and where you do business.
Your industry, business size, coverage limits and location determine your professional indemnity insurance cost the most.
Compare quotes, choose higher deductibles, pay annually and bundle policies to find lower premiums.
How Much Is Professional Indemnity Insurance?
Professional Indemnity Insurance Cost by Industry
We analyzed professional indemnity insurance costs across 79 industries and found mortgage brokers face the steepest premiums at $166 monthly, while home-based businesses pay just $37 monthly.
| Accountants | $146 | $1,751 |
| Ad Agency | $99 | $1,188 |
| Auto Repair | $82 | $989 |
| Automotive | $75 | $900 |
| Bakery | $53 | $634 |
| Barber | $43 | $513 |
| Beauty Salon | $49 | $589 |
| Bounce House | $59 | $709 |
| Candle | $42 | $502 |
| Cannabis | $122 | $1,468 |
| Catering | $79 | $950 |
| Cleaning | $55 | $656 |
| Coffee Shop | $61 | $732 |
| Computer Programming | $105 | $1,257 |
| Computer Repair | $63 | $752 |
| Construction | $77 | $921 |
| Consulting | $107 | $1,288 |
| Contractor | $63 | $759 |
| Courier | $50 | $598 |
| DJ | $45 | $546 |
| Daycare | $108 | $1,296 |
| Dental | $84 | $1,006 |
| Dog Grooming | $55 | $658 |
| Drone | $106 | $1,273 |
| Ecommerce | $62 | $739 |
| Electrical | $64 | $768 |
| Engineering | $104 | $1,248 |
| Excavation | $68 | $813 |
| Florist | $38 | $453 |
| Food | $110 | $1,321 |
| Food Truck | $59 | $708 |
| Funeral Home | $81 | $968 |
| Gardening | $40 | $481 |
| HVAC | $81 | $977 |
| Handyman | $54 | $651 |
| Home-based business | $37 | $445 |
| Hospitality | $74 | $883 |
| Janitorial | $50 | $597 |
| Jewelry | $61 | $735 |
| Junk Removal | $67 | $806 |
| Lawn/Landscaping | $51 | $616 |
| Lawyers | $146 | $1,746 |
| Manufacturing | $60 | $716 |
| Marine | $88 | $1,054 |
| Massage | $106 | $1,272 |
| Mortgage Broker | $166 | $1,992 |
| Moving | $82 | $981 |
| Nonprofit | $50 | $604 |
| Painting | $64 | $765 |
| Party Rental | $55 | $660 |
| Personal Training | $70 | $844 |
| Pest Control | $95 | $1,142 |
| Pet | $46 | $553 |
| Pharmacy | $57 | $688 |
| Photography | $64 | $765 |
| Physical Therapy | $94 | $1,131 |
| Plumbing | $90 | $1,076 |
| Pressure Washing | $57 | $689 |
| Real Estate | $125 | $1,505 |
| Restaurant | $82 | $980 |
| Retail | $55 | $658 |
| Roofing | $97 | $1,170 |
| Security | $100 | $1,197 |
| Snack Bars | $48 | $571 |
| Software | $95 | $1,139 |
| Spa/Wellness | $110 | $1,322 |
| Speech Therapist | $99 | $1,186 |
| Startup | $72 | $864 |
| Tech/IT | $98 | $1,179 |
| Transportation | $95 | $1,139 |
| Travel | $97 | $1,163 |
| Tree Service | $75 | $906 |
| Trucking | $111 | $1,333 |
| Tutoring | $61 | $728 |
| Veterinary | $116 | $1,391 |
| Wedding Planning | $77 | $921 |
| Welding | $77 | $923 |
| Wholesale | $62 | $739 |
| Window Cleaning | $62 | $748 |
How Did We Determine These Rates?
We contacted insurers across all 50 states to get quotes for small businesses with two employees in 79 different industries. All quotes were for standalone professional indemnity policies only. These rates show what similar businesses pay. Your quote will be based on your specific situation and which company you choose.
Professional Indemnity Insurance Cost by State
Where you operate affects what you pay for professional indemnity insurance. New York businesses face the highest costs at $90 monthly, compared to just $67 monthly in North Carolina. The table below displays costs by state:
| Alabama | $77 | $918 |
| Alaska | $70 | $840 |
| Arizona | $74 | $884 |
| Arkansas | $74 | $893 |
| California | $87 | $1,038 |
| Colorado | $77 | $923 |
| Connecticut | $84 | $1,014 |
| Delaware | $83 | $1,001 |
| Florida | $84 | $1,009 |
| Georgia | $79 | $948 |
| Grand Total | $78 | $931 |
| Hawaii | $81 | $967 |
| Idaho | $73 | $882 |
| Illinois | $85 | $1,025 |
| Indiana | $76 | $906 |
| Iowa | $74 | $886 |
| Kansas | $75 | $905 |
| Kentucky | $73 | $870 |
| Louisiana | $88 | $1,051 |
| Maine | $68 | $810 |
| Maryland | $74 | $889 |
| Massachusetts | $82 | $980 |
| Michigan | $73 | $880 |
| Minnesota | $73 | $875 |
| Mississippi | $78 | $934 |
| Missouri | $77 | $923 |
| Montana | $77 | $926 |
| Nebraska | $73 | $881 |
| Nevada | $88 | $1,061 |
| New Hampshire | $77 | $924 |
| New Jersey | $88 | $1,054 |
| New Mexico | $78 | $939 |
| New York | $90 | $1,077 |
| North Carolina | $67 | $807 |
| North Dakota | $68 | $810 |
| Ohio | $72 | $864 |
| Oklahoma | $73 | $877 |
| Oregon | $72 | $865 |
| Pennsylvania | $90 | $1,075 |
| Rhode Island | $85 | $1,024 |
| South Carolina | $80 | $959 |
| South Dakota | $73 | $872 |
| Tennessee | $76 | $909 |
| Texas | $78 | $939 |
| Utah | $74 | $889 |
| Vermont | $75 | $894 |
| Virginia | $71 | $850 |
| Washington | $88 | $1,061 |
| West Virginia | $81 | $978 |
| Wisconsin | $76 | $916 |
| Wyoming | $72 | $865 |
How Did We Determine These Rates?
We contacted insurers across all 50 states to get quotes for small businesses with two employees in 79 different industries. All quotes were for standalone professional indemnity policies only. These rates show what similar businesses pay. Your quote will be based on your specific situation and which company you choose.
What Affects the Cost of Professional Indemnity Insurance?
Your professional indemnity costs depend on several key factors that insurers carefully evaluate. Knowing how these work can help you understand your quotes and possibly reduce your insurance costs.
Your Industry and Risk Level
Your profession directly affects your premium because some jobs carry higher lawsuit risks. Financial advisors managing retirement accounts face higher premiums than photographers because investment mistakes can cost clients thousands. Our data shows mortgage brokers pay $166 monthly while barbers pay just $43 monthly, reflecting the potential financial impact of professional errors.
Business Size and Employee Count
The more people on your team, the more you expect to pay because the chances of someone making a mistake are higher. Adding employees increases your premium due to expanded exposure.
Coverage Limits
Higher coverage limits increase your premium, while lower limits reduce costs but provide less financial protection. Choose limits that match your potential exposure risk.
Revenue and Contract Size
High-value contracts mean high settlement figures if things go wrong. An architect working on major commercial projects pays more than one who handles residential designs. Larger projects generally involve higher damages.
Claims History
Your claims history affects renewal rates because insurers see past claims as signs of future problems. A contractor with prior claims will pay considerably more than one with no claim history.
Your Location
Where you operate matters significantly. Small business owners in New York pay an average of $90 monthly, but if you're in North Carolina, it'll only cost you $67 monthly. That's a $23 difference driven by local lawsuit rates and business density.
Years in Business
Newer businesses generally have higher insurance costs than experienced companies because there's more risk of making a mistake when you're new. A consulting firm operating for eight years typically pays less than a startup business.
How To Lower Professional Indemnity Insurance Cost
Professional indemnity insurance costs don't have to strain your budget. These strategies can help you find more affordable premiums while getting adequate protection for your business needs.
- 1
Determine whether you need coverage
Before shopping for quotes, assess whether you need professional indemnity coverage for your business. Some professions legally require it, while others mandate it through client contracts or industry bodies.
- 2
Compare quotes from multiple insurers
Shopping around can lead to significant savings. Coverage costs vary between insurers, so compare at least three options.
- 3
Choose a higher deductible
Increasing your deductible reduces your premium costs, but you'll pay more out-of-pocket if you file a claim.
- 4
Pay annually instead of monthly
Insurers reward upfront payments. Most carriers offer discounts for paying your entire premium at once rather than spreading payments throughout the year.
- 5
Bundle multiple policies
Many insurers provide savings when you purchase multiple coverage types together, such as combining professional indemnity with public liability coverage or other business insurance.
- 6
Maintain continuous coverage and clean claims history
Keep your policy active and maintain a clean claims record. Insurers view gaps in coverage and past claims as red flags, which leads to higher premiums.
Cost of Professional Indemnity Insurance: Bottom Line
The average cost of professional indemnity insurance goes from $32 to $193 monthly, based on your profession and location. While factors like industry risk and business size drive these differences, you can find more affordable coverage by comparing quotes, adjusting deductibles and bundling coverage types.
How Much Does Professional Indemnity Insurance Cost: FAQ
We've answered the most frequently asked questions about professional indemnity insurance costs to help you make informed coverage decisions:
How much should I expect to pay for professional indemnity insurance?
Professional indemnity insurance costs $78 monthly on average, but ranges from $32 to $193 monthly depending on your industry and location. Your actual premium depends on your specific business profile and risk factors.
What factors affect my professional indemnity insurance premium the most?
Your industry has the biggest impact on costs. High-risk professions like mortgage brokers ($166 monthly) and accountants ($146 monthly) pay more than lower-risk businesses like barbers ($43 monthly) or bakeries ($53 monthly).
Is professional indemnity insurance worth the cost?
Yes, professional indemnity insurance is worth it if you provide professional services or advice. A single client lawsuit for alleged negligence can cost thousands in legal fees alone, making the insurance premium a wise investment for financial protection.
How can I get more affordable professional indemnity insurance?
Start by gathering quotes from at least three insurers, as rates vary significantly between companies. Choose higher deductibles, pay annually instead of monthly and bundle with other business policies for additional savings.
Do all businesses need professional indemnity insurance?
Not all businesses need this coverage. It's legally required for professionals like lawyers, doctors and architects, while consultants and IT services often need it for client contracts. Service-based businesses providing advice face the highest risk.
What's the difference between professional indemnity and professional liability insurance?
Professional indemnity and professional liability insurance are the same coverage with different names. Both are claims-made policies, meaning your coverage must be active both when the incident occurs and when someone files a claim against you.
How do professional indemnity insurance costs compare by state?
Location creates cost differences across states. New York businesses pay the highest rates at $90 monthly, while North Carolina offers the lowest at $67 monthly, creating a $23 monthly difference between states.
How We Determined the Cost of Professional Indemnity Insurance
Small business owners shopping for professional indemnity coverage shouldn't have to guess what they'll pay. We collected quotes from insurers across all 50 states using a consistent business profile representing established small professional service companies:
- Three employees total (including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million/$2 million (per occurrence/aggregate) coverage limits
We quoted standalone professional indemnity policies rather than bundled packages to show exactly what this coverage costs. It gives you realistic expectations for your own quotes.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.