The short version
- Your profession sets the starting point. Insurers price by the services you provide and how often that kind of work leads to claims.
- Revenue measures exposure. More revenue usually means more clients, more projects, and a higher premium.
- Limits and deductible move the price. Higher limits cost more; a higher deductible (often called a retention) lowers the premium.
- History matters. Prior claims, and how long you have been insured without a gap, affect both price and which insurers will quote.
- Contracts can set your floor. If a client requires $2 million per claim, that requirement, not your preference, decides the limit you price.
What drives the price
| Factor | Why it matters |
|---|---|
| Services you provide | Work with higher stakes for the client, such as technology implementations, design, or financial advice, prices higher than lower-stakes work |
| Annual revenue | A common measure of how much work, and how many clients, you have |
| Size and type of clients | Large clients and long contracts can mean larger claims |
| Limits | The amount per claim and in the aggregate |
| Deductible or retention | How much of each claim you pay first |
| Claims history | Prior claims and potential claims you have reported |
| Years in business and continuous coverage | A long, uninterrupted insurance history helps |
| Retroactive date | Covering earlier work (prior acts) can add cost |
| Defense terms | Defense outside the limits, so it does not use up the limit, usually costs more than defense inside the limits |
| Contracts and risk management | Written engagement letters, scope documents, and limits of liability in your contracts help underwriters |
| Use of subcontractors and AI tools | Some applications ask how work is delivered and checked |
Why we do not publish a price list
Professional liability is priced business by business. Two consultants with the same revenue can get very different quotes depending on their clients, contracts, and claims history, and published averages mix professions that have little in common. We quote from your actual services, revenue, and contract requirements, usually with several insurers.
How to lower the cost without losing coverage
- Choose the deductible you can actually pay. A higher retention lowers the premium.
- Match limits to real requirements. Carry what your contracts and exposure call for, and use an umbrella only if its policy language lists professional liability, since an umbrella covers only the underlying policies it names.
- Keep your retroactive date. Losing it when you switch insurers removes coverage for past work; keeping it avoids buying that coverage back.
- Use written engagement letters and scope documents. Clear deliverables reduce disputes, and underwriters ask about them.
- Report potential claims early. Early notice protects coverage; in Washington, a claim or circumstance not reported before a claims-made policy ends can lose coverage even if the insurer was not harmed.
- Bundle where it fits. Technology firms can often buy technology E&O and cyber on one form.
- Shop it. As an independent broker, we compare insurers that write your profession.
Cost of not having it
Defense costs alone can be significant, even for a claim with no merit, and a claims-made policy only helps if it was in force when the claim was made. A missing E&O requirement can also cost you the contract. See the professional liability guide and E&O for consultants.