How to find cheap professional liability insurance rates

There are many ways you can get cheap professional liability coverage and keep your insurance costs low.

With rates starting at $32 a month, professional liability insurance is typically an affordable small business insurance policy. This coverage, also called errors and omissions (E&O) insurance or medical malpractice insurance, covers exposures such as negligence, misrepresentation, inaccurate advice, and missed deadlines.

From shopping around to preventing future claims, here are the top ways to secure affordable E&O coverage that will protect your business and your bottom line.

• Shop around and compare professional liability insurance quotes
• Bundle your professional liability coverage with other policies
• How much does a professional liability policy cost?
• Personalize your professional liability policy
• Manage your risks to help keep your costs low
• States with the most affordable professional liability insurance rates
• Industries with the lowest professional liability insurance rates
• What doesn't professional liability insurance cover?
• Get free professional liability quotes and buy online with TechInsurance

Comparing quotes from multiple insurance providers is one of the smartest ways to save money on your professional liability insurance. To do this, you can get a quote from each carrier individually, or you can work with a digital insurance agency like TechInsurance.

With one simple online application, you can compare E&O quotes from top-rated providers like The Hartford, Liberty Mutual, and Hiscox. Our licensed insurance agents can help you select the policy that covers your risks and complies with state laws and industry requirements.

When you’ve found the best coverage for your small business, you can typically get coverage and a certificate of insurance (COI) in less than 24 hours.

Many insurers offer lower rates to customers who purchase more than one policy. For example, technology professional liability insurance, also known as tech E&O, bundles professional liability with cyber insurance at a lower rate than purchasing the policies individually.

Tech E&O protects software developers, IT consultants, and other tech professionals from lawsuits over professional mistakes, negligence, or oversights that cause a data breach at a client's business.

Some business owners also save money by bundling their professional liability with general liability insurance.

Every professional liability policy offers similar coverage, but you can save money by customizing your policy to meet your business’s unique needs. Here’s how you can do this:

Choosing lower per-occurrence limits and aggregate limits for your policy is an easy way to save money on your E&O insurance. However, it’s important to select policy limits that will cover a potential claim. If your business faces an expensive lawsuit and you don’t have sufficient coverage, you might have to pay substantial legal fees out of pocket.

To determine the right policy limits, assess your premium cost and the potential cost of a lawsuit.

Selecting a higher deductible can reduce your premium, but this can come with some risk. Your insurance policy won’t kick in until you’ve paid the deductible, so it’s important to determine an amount that you can afford.

Also, facing multiple expensive claims, or having a claim that doesn’t meet your deductible, could end up costing you a lot out of pocket.

However, a higher deductible can be beneficial to small businesses that are unlikely to face a professional liability claim, allowing you to have E&O coverage at lower rates.

Although you can pay your premium monthly, many insurance carriers offer discounts if you pay the full premium once a year. If you can afford it, opting for annual payments can save you money in the long run.

Your business location has an impact on your professional liability premium. Here are the states where you can expect to pay lower-than-average E&O rates:

Your professional industry can also affect your errors and omissions premiums, with higher-risk businesses paying higher rates for coverage.

For example, building designers pay an average of $144 per month due to the increased risks and high costs that can arise from a lawsuit over professional errors. Meanwhile, videographers only pay about $42 a month, since their risk level is relatively low.

TechInsurance customers who are professional service providers, healthcare professionals, and business consultants pay less compared to higher-risk industries like IT companies and nonprofit organizations.

Here’s how professional liability rates can range by industry:

Although professional liability protects your small business against claims from unsatisfactory services, it doesn’t cover every risk your business might face.

Here are some of the other business insurance policies your company might benefit from:

If a customer suffers a bodily injury on your business premises or you damage a customer’s property accidentally, E&O insurance won’t cover the claim. General liability insurance covers these common business risks, helping to pay for:

• Medical expenses, like ER visits and medication
• Repair and replacement costs for damaged items
• Legal fees if a customer sues, including attorney fees, settlements, and judgments

If your business owns vehicles, most states require you to carry commercial auto insurance. This policy provides financial protection if you or one of your employees is involved in an accident, covering:

• Medical costs from injured third parties
• Property damage from an accident, theft, or weather-related incident
• Uninsured motorists

However, if personal or leased vehicles are used for business purposes, you need hired and non-owned auto insurance (HNOA). For example, a real estate agent driving their own car to showings or an independent contractor taking their leased truck to jobsites would need HNOA insurance, since most personal policies won’t cover work-related driving.

If your tools, equipment, or other movable business property is lost, damaged, or stolen while it’s in transit between jobsites or being stored offsite, you’d need tools and equipment insurance.

Also called inland marine insurance, tools and equipment coverage offers protection for construction contractors, landscapers, plumbers, and other professionals who regularly work at different worksites.

A business owner's policy (BOP), which bundles general liability with commercial property insurance, protects business property like computers or furniture if inclement weather damages your building or a thief steals equipment from your office.

Most states require businesses to carry workers' compensation insurance when they hire their first employee. Workers’ comp covers medical expenses and disability benefits for employees with work-related injuries or illness exposures.

Plus, it provides financial protection for business owners, covering legal defense costs if an injured employee sues.

TechInsurance is a trusted insurance expert for small businesses, with extensive knowledge of the IT sector.

Complete our easy online application to compare free quotes for professional liability insurance and other policies from top-rated U.S. carriers. TechInsurance insurance agents are available to help answer any questions you may have.

Once you find the right policies for your small business, you can typically begin coverage and get a certificate of insurance (COI) in less than 24 hours.