Professional Liability Insurance Calculator

Anyone giving professional advice or services for a fee: consultants, accountants, real estate agents, IT firms, marketing agencies, designers, financial advisors, and architects. Required by law for many professions including doctors, lawyers, and CPAs.

Insureon: median small business E&O cost is $61/month ($732/year). High-risk professions: financial advisors $1,500-$5,000/year; doctors $7,500-$50,000+ depending on specialty (OBGYNs and surgeons highest).

GL covers physical injuries and property damage; professional liability (E&O) covers financial losses from your professional advice or service errors. A consultant whose advice causes a client to lose $500K would file an E&O claim, not GL.

It comes down to claim severity and frequency. A surgeon or obstetrician faces potential verdicts in the millions, while a consultant is mostly exposed to scope-of-work disputes. Profession and specialty are the single biggest factor in your premium.

It pays based on when a claim is reported, not when the work was actually done. That's why you need to keep coverage continuous and hold a consistent retroactive date: if you switch carriers without matching that date, you can leave a gap that strands older claims without coverage.

Tail coverage is an extension that lets you report claims for work done while your policy was active but filed after you cancel it. It is critical when you retire, sell the business, or change careers. It typically costs 1 to 3 times your last annual premium.

Use written engagement letters, document scope changes over email, take risk-management courses, raise your deductible if you have reserves, and get quotes from three or more carriers. The spread between carriers can be 30% to 40% for the same risk.