What professional liability covers
- Negligence, errors or omissions in your professional services.
- Missed deadlines or work that doesn’t meet the agreed standard.
- Misrepresentation or bad advice claims.
- Legal defense — even when the claim is groundless.
It doesn’t cover bodily injury or property damage — that’s general liability. Many service LLCs carry both.
Professional liability vs general liability
| Claim | Professional liability | General liability |
|---|---|---|
| Your advice causes a client to lose money | Covered | Not covered |
| You miss a contractual deadline or deliver faulty work | Covered | Not covered |
| A client trips and is injured at your office | Not covered | Covered |
| You damage a client’s property while working | Not covered | Covered |
| Legal defense for a covered claim | Included | Included |
Typical examples: a marketing consultant’s campaign advice is blamed for lost sales; a developer’s bug takes a client’s store offline; a bookkeeper’s error triggers a tax penalty. In each case the client claims a financial loss — that’s professional liability territory. Most policies are written on a claims-made basis, so keep coverage continuous: a claim generally has to be made while the policy is active.
What it costs
Insureon reports a median of $88 a month; 43% of customers pay under $75 and 28% pay $75–$150.
| State | Median per month |
|---|---|
| California | $94 |
| Florida | $84 |
| Georgia | $83 |
| New York | $97 |
| North Carolina | $78 |
| Texas | $91 |
Get quotes
Simply Business
GL from $20.75/mo
- Compares quotes side by side from 18 carriers
- Carriers include Hiscox, Travelers, CNA, Markel and Liberty
- Certificate of insurance downloadable 24/7
Watch out: Advertised prices are the 10th percentile — most pay more
NEXT Insurance
General liability from $19/mo
- Buy online in about 10 minutes, coverage effective after payment
- Unlimited free certificates of insurance (COI), 24/7
- General liability from $19 a month
Watch out: Starting prices are not guaranteed
Insureon
Median GL $45/mo
- Publishes median prices from 100,000+ small-business customers
- Quotes from multiple insurers with licensed agents
- Covers a wide range of industries
Watch out: Medians — your price depends on industry, state and limits
Prices are published averages or starting prices from each insurer or broker, not quotes. Your premium depends on your industry, state, payroll, revenue and claims history. We are not an insurance agency. Verified October 18, 2026. We may earn a commission if you sign up through our links, at no cost to you. How we’re funded.
Frequently asked questions
What is professional liability insurance?
Also called errors and omissions (E&O), it covers claims that your professional advice or services caused a client a financial loss — mistakes, missed deadlines, negligence — including legal defense.
Does my LLC protect me from professional mistakes?
Not fully. An LLC generally doesn’t shield you from liability for your own professional negligence. Professional liability insurance is what pays those claims.
How much does professional liability cost?
Insureon’s median is $88 a month ($1,051 a year), with annual premiums from about $400 to over $7,000. Photographers and accountants pay around $42 a month; building designers about $144.
What limits do most businesses choose?
56% of Insureon’s customers choose $1 million per claim / $1 million aggregate; 11% choose $2M / $2M. The average deductible is $2,500.
Who needs professional liability?
Consultants, marketers, designers, developers and IT providers, accountants and bookkeepers, real estate professionals, coaches and anyone whose clients rely on their expertise — and anyone whose contracts require it.
Your LLC setup checklist
- Get a free EINFrom the IRS, in minutes online.
- Open a business bank accountKeep LLC money apart from yours to protect the liability shield.
- Sign an operating agreementSettle who owns and decides what before it matters.
- Plan your taxesKnow your tax status and federal due dates.
- Track state deadlinesFree reminders before each filing.
Everything in one list: printable LLC compliance checklist · live deadline calendar.