Updated: July 12, 2025
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Professional liability insurance costs range from $25 to $193 monthly, depending on your industry and business size.
Several factors influence professional liability costs, but your industry and business size affect it the most.
Shopping around for quotes, choosing a higher deductible and paying annually helps you lower the cost of professional liability insurance.
Professional liability insurance costs an average of $82 monthly for small businesses, but premiums range from $25 to $193, depending on your situation. We based these rates on quotes we analyzed for businesses with two employees earning around $300,000 annually and existing coverage.
Your actual premium varies widely based on several factors. We'll explain what drives these differences and show how rates vary between industries and states.
We found that home-based businesses pay the least for professional liability insurance at $29 monthly ($352 annually) since they face fewer client interactions and smaller financial risks.
Mortgage brokers pay the most at $166 monthly ($1,996 annually) because they handle million-dollar deals where mistakes can cost clients substantial financial losses.
| Accountants | $146 | $1,754 |
| Ad Agency | $141 | $1,690 |
| Auto Repair | $83 | $991 |
| Automotive | $75 | $901 |
| Bakery | $53 | $635 |
| Barber | $43 | $514 |
| Beauty Salon | $49 | $590 |
| Bounce House | $59 | $711 |
| Candle | $42 | $502 |
| Cannabis | $123 | $1,471 |
| Catering | $79 | $952 |
| Cleaning | $55 | $657 |
| Coffee Shop | $61 | $733 |
| Computer Programming | $105 | $1,259 |
| Computer Repair | $63 | $753 |
| Construction | $129 | $1,550 |
| Consulting | $108 | $1,290 |
| Contractor | $120 | $1,444 |
| Courier | $99 | $1,192 |
| DJ | $46 | $546 |
| Daycare | $108 | $1,298 |
| Dental | $116 | $1,398 |
| Dog Grooming | $55 | $660 |
| Drone | $106 | $1,275 |
| Ecommerce | $62 | $740 |
| Electrical | $115 | $1,383 |
| Engineering | $124 | $1,485 |
| Excavation | $68 | $814 |
| Florist | $38 | $453 |
| Food | $129 | $1,546 |
| Food Truck | $59 | $709 |
| Funeral Home | $81 | $970 |
| Gardening | $40 | $481 |
| HVAC | $81 | $978 |
| Handyman | $54 | $652 |
| Home-based | $29 | $352 |
| Home-based business | $37 | $446 |
| Hospitality | $74 | $884 |
| Janitorial | $50 | $598 |
| Jewelry | $61 | $736 |
| Junk Removal | $67 | $807 |
| Lawn/Landscaping | $51 | $617 |
| Lawyers | $146 | $1,750 |
| Manufacturing | $60 | $717 |
| Marine | $88 | $1,056 |
| Massage | $106 | $1,274 |
| Mortgage Broker | $166 | $1,996 |
| Moving | $82 | $982 |
| Nonprofit | $50 | $605 |
| Painting | $64 | $766 |
| Party Rental | $55 | $661 |
| Personal Training | $71 | $846 |
| Pest Control | $95 | $1,144 |
| Pet | $46 | $553 |
| Pharmacy | $122 | $1,458 |
| Photography | $64 | $766 |
| Physical Therapy | $94 | $1,133 |
| Plumbing | $90 | $1,078 |
| Pressure Washing | $57 | $690 |
| Real Estate | $126 | $1,508 |
| Restaurant | $82 | $982 |
| Retail | $55 | $659 |
| Roofing | $98 | $1,171 |
| Security | $100 | $1,199 |
| Snack Bars | $48 | $571 |
| Software | $95 | $1,141 |
| Spa/Wellness | $110 | $1,324 |
| Speech Therapist | $99 | $1,188 |
| Startup | $72 | $865 |
| Tech/IT | $98 | $1,181 |
| Transportation | $95 | $1,141 |
| Travel | $97 | $1,165 |
| Tree Service | $76 | $907 |
| Trucking | $111 | $1,335 |
| Tutoring | $61 | $729 |
| Veterinary | $116 | $1,394 |
| Wedding Planning | $77 | $922 |
| Welding | $77 | $925 |
| Wholesale | $62 | $740 |
| Window Cleaning | $62 | $750 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies.
Location affects professional liability insurance costs. Our data shows Maine has the cheapest average monthly rate at $71 ($854 annually), while New York has the most expensive at $95 monthly ($1,135 annually). Maine's smaller business environment means fewer claims, while New York's competitive market and high business density lead to more lawsuits and higher costs.
| Alabama | $81 | $968 |
| Alaska | $75 | $903 |
| Arizona | $78 | $934 |
| Arkansas | $79 | $943 |
| California | $91 | $1,095 |
| Colorado | $81 | $976 |
| Connecticut | $89 | $1,067 |
| Delaware | $88 | $1,058 |
| Florida | $89 | $1,065 |
| Georgia | $83 | $1,000 |
| Hawaii | $86 | $1,034 |
| Idaho | $78 | $930 |
| Illinois | $90 | $1,080 |
| Indiana | $80 | $955 |
| Iowa | $78 | $934 |
| Kansas | $80 | $954 |
| Kentucky | $76 | $917 |
| Louisiana | $95 | $1,138 |
| Maine | $71 | $854 |
| Maryland | $78 | $938 |
| Massachusetts | $86 | $1,033 |
| Michigan | $77 | $929 |
| Minnesota | $77 | $923 |
| Mississippi | $82 | $985 |
| Missouri | $81 | $973 |
| Montana | $82 | $978 |
| Nebraska | $77 | $929 |
| Nevada | $93 | $1,121 |
| New Hampshire | $81 | $975 |
| New Jersey | $93 | $1,111 |
| New Mexico | $82 | $990 |
| New York | $95 | $1,135 |
| North Carolina | $71 | $851 |
| North Dakota | $71 | $853 |
| Ohio | $76 | $910 |
| Oklahoma | $78 | $931 |
| Oregon | $76 | $912 |
| Pennsylvania | $94 | $1,132 |
| Rhode Island | $90 | $1,080 |
| South Carolina | $84 | $1,011 |
| South Dakota | $77 | $920 |
| Tennessee | $80 | $959 |
| Texas | $83 | $990 |
| Utah | $78 | $940 |
| Vermont | $79 | $943 |
| Virginia | $75 | $896 |
| Washington | $93 | $1,119 |
| West Virginia | $86 | $1,031 |
| Wisconsin | $80 | $965 |
| Wyoming | $76 | $911 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies.
Your industry and business size have the biggest effect on the cost of professional liability insurance, but there are several others that drive premiums. Understanding these helps you estimate what you'll pay for coverage.
Your profession directly affects your premium because some jobs carry higher lawsuit risks. A financial advisor managing retirement accounts faces higher premiums than a photographer because investment mistakes can cost clients thousands.
The more people on your team, the more you can expect to pay because the chances of someone making a mistake are higher. For instance, a solo consultant might pay around $80 monthly, while larger firms pay more.
Coverage limits can range between $250,000 and $2 million, with higher limits increasing your insurance cost. Many small businesses choose $1 million per occurrence (per individual claim) and $1 million aggregate limits (total annual coverage) for balanced financial protection, similar to the recommended coverage for general liability coverage.
Your professional liability cost increases if you have a history of claims against your business. Even one past claim can increase your premium compared to businesses with clean records.
Newer businesses have higher insurance costs than experienced companies because there's more risk of making a mistake when you're new. For example, a startup consulting firm might pay 20% more than a firm operating for five years.
Your business location can impact insurance costs because legal expenses vary between states. States with higher litigation rates have more expensive premiums than those with fewer lawsuits.
High-value projects result in higher premiums because clients stand to lose more if something goes wrong. For example, someone managing the implementation of a million-dollar software system pays more than someone handling small website projects.
You can reduce your professional liability insurance cost in several ways. These strategies help you find the cheapest business insurance coverage, allowing you to budget effectively.
Review whether you need professional liability insurance and the appropriate coverage limits for your business. Suppose you provide professional services or advice that could cause financial harm to clients. Professional liability insurance is important in that case, but you might not need the highest coverage limits.
Different insurers can offer different rates for the same coverage, so comparing at least three options can lead to savings and help you find cheap business insurance options for comprehensive financial protection.
Increasing your deductible (what you pay before insurance covers the rest) can reduce your premium costs, but you'll pay more out-of-pocket if you file a claim. For example, raising your deductible from $1,000 to $5,000 can lower your monthly premium, but make sure you can afford the deductible.
Annual payments can save you money compared to monthly payment plans since insurers often reward upfront payments.
Combining professional liability insurance with general liability or other types of business insurance can lead to discounts. For example, you automatically save 10% if you combine more than one type of policy with NEXT Insurance.
Avoiding lawsuits through sound business practices keeps costs low. For instance, businesses with no claims for consecutive years often qualify for discounts.
Proper training programs, clear contracts and excellent client communication reduce your likelihood of claims. For example, documenting all client communications and setting clear expectations can prevent disputes that lead to lawsuits.
Gaps in professional liability coverage can result in higher premiums when you seek new insurance because insurers see interrupted coverage as riskier.
Your industry and business size are the main determinants of your professional liability insurance costs, ranging from $25 to $193 per month. You can manage your coverage costs by shopping around for quotes, choosing higher deductibles and paying annually for better rates.
MoneyGeek provides expert insights to frequently asked questions about the cost of professional liability:
Based on our analysis, professional liability insurance costs small businesses an average of $82 monthly or $984 annually. Your actual cost varies based on industry, business size, location and coverage limits.
Mortgage brokers pay the most at $166 monthly because they handle million-dollar deals where mistakes can cost clients massive amounts. Home-based businesses pay the least, $29 monthly.
Maine has the cheapest professional liability insurance at $71 monthly because of fewer claims, while New York costs the most at $95 monthly because of higher lawsuit rates. Most states fall between these ranges.
Many small businesses choose $1 million per occurrence and $1 million aggregate limits for balanced coverage. High-value consultants managing million-dollar projects typically need higher limits than lower-risk businesses like photographers.
Shop around for quotes, choose higher deductibles and pay annually instead of monthly. Consider bundling your policies, maintain a clean claims history and keep continuous coverage.
Industry costs range from $29 to $166 monthly because some professions carry higher lawsuit risks. Industries that give direct advice or handle high-value deals typically pay more due to increased liability exposure.
Yes, paying $82 monthly is smart when a single lawsuit can cost tens of thousands in legal fees alone. Even frivolous lawsuits require expensive legal defense that far exceeds annual premiums.
Your claims history affects renewal rates because insurers see past claims as signs of future problems. Businesses with clean records qualify for discounts, while multiple claims can greatly increase premiums.
Yes, solo consultants typically need professional liability insurance, paying around $80 monthly for coverage. You can face lawsuit risks from client disputes, missed deadlines or professional errors that result in expensive legal costs.
We examined professional liability insurance premiums for small businesses, comparing costs across various industries and states.
Every quote used identical parameters to ensure fair comparisons:
This profile represents small businesses requiring professional liability insurance in most states. We chose companies offering broad national coverage and online quote capabilities.
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.
