How much does professional liability insurance cost?

Several factors play a crucial role in determining the overall cost of professional liability insurance:

1. Your industry: Some businesses have more inherent risk than others. A travel agent may have less risk of being sued for negligence than a business consultant, for example.
2. Policy limits: Higher policy limits typically result in higher premiums. Businesses must balance the need for adequate coverage with cost considerations.
3. The size of your business: This is measured by your annual revenue and will impact your coverage limits (the amount we will pay for a covered claim).
4. Endorsements: Additional endorsements or riders can affect costs. Depending on the unique needs of the business, these can increase overall premiums.
5. Location: Insurance rates can vary based on geographical location. Factors such as state regulations, the risk environment, and local market conditions can lead to differing premium costs.

You can make choices that will help keep your professional liability costs down. Here are three ways to do this:

Choose the right limits. Your policy will have a claim limit, which is the maximum amount we will pay for any single claim, and an aggregate limit, which is the maximum amount we will pay for all claims during the policy period (typically one year). The higher your limits, the higher your premium, so think about how much coverage you may need.

Select the highest deductible you can. The deductible is the amount you pay before your insurance pays. The higher this amount, the more risk you are taking on yourself, so the lower your premium will be.

Make sure you have the right professional liability insurance coverage. Hiscox provides tailored policies that cover the specific risks your business faces, to help you get everything you need and nothing you don’t. That helps you keep your professional liability insurance costs down.

Reducing claims is another good way to keep costs of professional liability insurance down. Use a contract for every project and make sure it specifies the scope of work, deliverables and milestones.

• Flexible payment options: We offer you the option of making monthly payments (with no additional fees) to help you manage your cash flow.
• Customized insurance: We specialize in businesses like yours and tailor coverage to the risks in your field.
• Claims responsiveness: When a covered claim is reported, Hiscox will immediately assign a dedicated claims representative to assist you.
• Worldwide coverage: Hiscox covers claims that are brought in the United States, its territories, and Canada. In some instances, the incident that resulted in the claim may have occurred anywhere in the world.
• Passion for service: Agents knowledgeable about your business concerns will provide you with excellent service—customers rated us 4.7/5.