What is the cost of Professional Liability insurance for your profession?
Here are the median monthly premiums of professional liability insurance in popular professions:
What factors influence the cost of Professional Liability insurance?
The price you’ll pay for professional liability insurance is determined by several factors, including:
The type of work you do
If you’re a yoga instructor, your insurance is likely going to cost less than an engineer because the nature of your work is inherently less risky.
If your business involves offering people advice, your risks will probably be more than a business that doesn’t. In general, jobs that are more likely to result in business errors or accusations of negligence often have higher insurance costs.
For example, the professional liability insurance cost for engineers, who could be accused of making a miscalculation in project plans and face more risks of making costly mistakes than many other professions, could be more expensive than for a yoga instructor who faces less risk.
How many employees you have
The professional liability insurance cost for consultants who work alone is likely going to be less than if you run a firm that employs seven consultants.
If you have employees, many states legally require you to purchase workers’ compensation insurance to cover work-related injuries.
The state where you work
If you’re a small business owner in San Francisco you’re probably going to pay more for insurance than if you worked in a small town in Montana.
This is partly due to different states having different regulations and partly because, as a general rule, the more populous the area, the more expensive your insurance rates will be.
Your claims history
Your record of losses and insurance claims has an impact on your insurance costs.
For example, if you’re an accountant and you provide faulty tax advice, which results in a claim, you may see an increase in your premium at renewal time.
How high you set your limits
If you want to be covered for a greater extent of damage, you can select higher coverage limits on your insurance policy. Higher coverage limits will almost always increase the cost of your policy.
Your work experience
The number of years you’ve operated a business in your industry impacts your insurance rates.
For example, if you’ve been a daycare owner for eight years with no claims, you will likely pay less than an actuary who’s been in business for two years because you have more experience in your field.
These are only a few common factors that affect your costs. Insurance providers take into account many other factors, including external factors such as economic conditions and market trends.
Note: It’s important to provide the most accurate information about your business when you get a quote for insurance to make sure you get the coverage that is right for you and any claims are processed without delays.
