How Much Does Professional Liability (E&O) Insurance Cost?
Professional liability insurance — also called errors & omissions, or E&O — costs about $61 per month ($730 per year) at the median for small businesses, according to Insureon data reported by NerdWallet. But that headline median hides a wide spread: what you actually pay depends most on your occupation, the limits and deductible you choose, and which state you operate in.
This is an independent guide from QuoteSweep, which maps the modern commercial insurance landscape. Every figure below is attributed to its source so you can see exactly which population each number describes — because the "typical" E&O premium looks very different depending on whether you measure the median or the average.
TL;DR: The most-cited E&O benchmark is $61/month ($730/year) at the median, from Insureon data reported by NerdWallet. Insureon's own published average is higher — $88/month ($1,051/year) — because the average is pulled up by high-risk, high-premium buyers; TechInsurance, which runs on the same underwriting data engine as Insureon, independently reports the same $88/month average. Both are real numbers; the median describes the typical buyer, the average describes the whole book. By occupation, Insureon/TechInsurance averages span $41/month (notaries) to $144/month (engineers). Overall, premiums run roughly $400 to $7,000+ per year (Insureon).
How much does it cost?
The single most defensible "typical" number is the median: $61 per month, or about $730 per year — Insureon data reported by NerdWallet. Insureon's own stated average is higher, at $88/month (about $1,051/year), and TechInsurance — which uses the same underwriting data engine as Insureon — independently reports the same $88/month ($1,051/year) average.
Why do the two figures differ? The average is pulled up by high-risk outliers — a handful of high-premium buyers drag the mean above the middle of the pack. That makes the $61 median the better "typical" figure for a normal small business, while the $88 average better describes Insureon's entire book. Both are legitimate; they're just different statistics.
Insureon's own customer distribution shows where most buyers actually land: 43% pay under $75/month and 28% pay $75–$150/month (Insureon). Across the full book, E&O premiums run roughly $400 to over $7,000 per year (Insureon); TechInsurance phrases the same spread as "under $400 to over $7,000."
E&O cost by occupation (Insureon / TechInsurance averages)
Occupation is where the real spread lives. Insureon and TechInsurance report the following average monthly E&O premiums by profession:
| Occupation | Average monthly E&O premium (Insureon / TechInsurance) |
|---|---|
| Notaries | ~$41/month |
| Bookkeepers / accountants | ~$42/month |
| Consultants | ~$63/month |
| Insurance agents | ~$92/month |
| IT professionals | ~$110/month |
| Engineers / building designers | ~$144/month |
The pattern is clear: higher-stakes advisory work (IT, engineering) costs several times what lower-risk professions like notaries and bookkeepers pay.
E&O cost by industry (Coverdash 2025, via NerdWallet)
For businesses under $1M in revenue, NerdWallet — citing Coverdash 2025 data — reports these annual E&O ranges:
| Industry | Annual E&O premium (Coverdash 2025, via NerdWallet) |
|---|---|
| Professional / scientific / technical services | ~$800–$3,500/year ($67–$292/month) |
| Technology | ~$1,300–$2,400/year ($108–$200/month) |
| Construction / contractors (E&O) | ~$1,200–$5,000/year ($100–$417/month) |
What drives the cost
Several factors move an E&O premium up or down. In rough order of impact:
Occupation / risk level. This is the single biggest driver. High-lawsuit professions — engineers, IT professionals, contractors — pay far more than lower-risk ones like notaries and bookkeepers. Insureon and TechInsurance put the spread at roughly $41/month (notaries) to $144/month (engineers).
Coverage limits chosen. Most Insureon customers — 56% — pick $1M/$1M limits, while 11% pick $2M/$2M (Insureon). Higher limits raise the premium.
Deductible. Insureon's average selected E&O deductible is $2,500 (Insureon). A higher deductible lowers the premium.
Claims history. Prior E&O claims or lawsuits push rates up (Insureon).
Business location / state. Insureon's average monthly E&O premiums vary by state — for example, Virginia $99, New York $97, California $94, and Texas $91, versus Pennsylvania $79 (Insureon).
Annual revenue and number of employees. Larger operations pay more (Insureon).
How to lower your premium
Insureon and NerdWallet point to a consistent set of levers:
- Compare multiple quotes before buying. Shopping several insurers is one of the most reliable ways to find affordable E&O (Insureon).
- Pay annually rather than monthly. Paying the premium upfront avoids installment fees (Insureon).
- Bundle E&O with other policies. Packaging E&O with a Business Owner's Policy or general liability usually costs less than buying them separately (Insureon); some carriers, like Hiscox, give up to a 5% multi-policy discount (NerdWallet).
- Choose a higher deductible. A higher deductible reduces the premium — keep it to an amount you could actually pay on a claim (Insureon).
- Maintain continuous coverage without lapses (Insureon).
- Reduce claims risk. Strong client contracts, thorough documentation, and clear communication cut the odds of a claim and keep future rates down (Insureon).
- Right-size your coverage limits to what your contracts and clients actually require instead of over-buying.
Affordable options
If you want to shop E&O directly, these are insurtechs QuoteSweep has profiled independently. Compare at least two — appetite and pricing vary by carrier and by business.
Hiscox is a specialty small-business insurer, part of the publicly listed Hiscox Group, and is strongest in professional liability (E&O). It also writes general liability, BOP, and cyber, and was the first US insurer to sell business owner's coverage direct and online in real time. Best fit if your main exposure is professional liability — consultants, agencies, IT, and other professional-services firms.
Embroker is a digital commercial insurance brokerage and platform built for startups, tech companies, law firms, financial services, and consultants. It combines a broker's guidance with online quoting and packages professional liability (E&O) and tech E&O alongside D&O, EPLI, BOP, and cyber. A strong fit for funded startups and professional firms that need management and professional liability together.
Vouch is a technology-powered insurance broker focused on startups and growing companies in tech, healthcare, professional services, and financial services. It pairs advisors with digital tools to place E&O, cyber, D&O, and general liability that stands up to investor and enterprise requirements. In 2025 Vouch sold its MGA and carrier operations to Hiscox and now operates as a broker under a multi-year Hiscox distribution deal. Best for growing companies that need coverage matched to investor and customer contracts.
biBERK is a direct-to-business insurer and part of the Berkshire Hathaway Insurance Group, writing on carriers rated A++ (Superior) by AM Best. It sells professional liability online with no brokers and positions on savings of up to 20% by removing the middleman. The trust-and-stability pick for standard small-business risk.
Frequently Asked Questions
How much does professional liability (E&O) insurance cost per month?
Most small businesses pay about $61/month ($730/year) at the median, per Insureon data reported by NerdWallet. Insureon's own average is higher at $88/month ($1,051/year) — echoed by TechInsurance — because high-risk buyers pull the average up. By occupation, Insureon/TechInsurance averages span $41/month (notaries) to $144/month (engineers).
Why is my E&O quote higher than the $61/month median?
Because $61 is the median — the middle of the pack — while a lot of buyers pay more. Insureon's average is $88/month, since high-risk, high-premium professions pull the average up. If you're in a high-lawsuit occupation (IT ~$110/month, engineering ~$144/month per Insureon/TechInsurance) or a higher-cost state (Insureon: Virginia $99, New York $97), expect to land above the median.
What's the cheapest way to get E&O coverage?
Per Insureon and NerdWallet: compare quotes from multiple carriers, pay annually rather than monthly to avoid installment fees, bundle E&O into a BOP or with general liability (some carriers like Hiscox give up to a 5% multi-policy discount), raise your deductible to an amount you could actually pay, keep continuous coverage without lapses, and reduce claims risk with strong contracts and documentation.
How much E&O coverage do I need?
Most Insureon customers — 56% — choose $1 million per-claim / $1 million aggregate limits, and 11% step up to $2M/$2M (Insureon). Higher limits raise the premium, so match your limits to what your contracts and clients actually require rather than over-buying. Insureon's average selected deductible is $2,500.
The bottom line
The most defensible single number for professional liability / E&O insurance is $61/month ($730/year) at the median, from Insureon data reported by NerdWallet — but treat it as a starting anchor, not a quote. Insureon's own average is higher at $88/month ($1,051/year) (echoed by TechInsurance) because high-risk buyers skew the average; the median better describes the typical small business. Your own number will land somewhere on the spectrum — roughly $400 to $7,000+ per year (Insureon) — based mostly on your occupation (Insureon/TechInsurance: $41–$144/month), the limits and deductible you pick, and your state. The only way to know your real price is to quote it — compare at least two carriers, and see the full field of small-business insurtechs on the small-business hub.
