The honest answer to “what does E&O cost?” is a range — but it’s a knowable range. Most solo professionals pay somewhere between $300 and $1,500 per year for $1 million in professional liability coverage, and most small firms land between $1,000 and $5,000. Where you fall in that spread comes down to five factors carriers actually price.
The five factors that set your premium
1. What you do. The severity of what an error can cost a client drives everything. A personal trainer’s programming mistake and a structural engineer’s calculation error live in different universes, and their premiums do too — fitness professionals can pay under $200 while architecture and engineering firms pay thousands. Browse our 33 profession guides for ranges specific to your work.
2. Revenue. More billings mean more clients, more deliverables, and larger claimed damages — revenue is the closest thing E&O pricing has to a base rate. Expect premium to step up with revenue bands rather than climb smoothly.
3. Limits and retention. $1M per claim is the contract-driven standard. Moving to $2M typically costs 25–50% more, not double — limit is one of the cheaper things to buy in this market. Higher retentions (deductibles) trim premium modestly.
4. Claims history. A defended claim with a modest payout moves premium some; a pattern moves it a lot. Carriers also reward clean process — engagement letters, documented scopes — in professions where they ask.
5. State and venue. The same consultant profile can price 20%+ apart between a litigious metro and a quiet market. Our state guides cover the geography.
Typical ranges by profession type
| Profession type | Typical annual premium, $1M limit* |
|---|---|
| Fitness, wellness, tutoring | ~$150 – $500 |
| Consultants, marketers, designers | ~$400 – $1,400 |
| Accountants, bookkeepers, real estate | ~$400 – $1,600 |
| IT / technology (with cyber) | ~$900 – $2,500 |
| Home inspectors (E&O + GL) | ~$1,200 – $3,500 |
| Architects & engineers | ~$2,000 – $8,000+ |
*Illustrative market ranges from typical small-business placements; actual premiums depend on revenue, limits, claims history, state, and carrier appetite. Not quotes or offers of coverage.
Why identical businesses get different quotes
Carrier appetite is the quiet variable: every insurer has professions it wants and professions it tolerates, and the premium difference between an eager market and a reluctant one for the same risk routinely exceeds 20%. That spread is the entire argument for comparison shopping — and the reason we quote your profile across multiple A-rated carriers rather than one. See your options in minutes.
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