Professional Liability / E&O Cost

What drives the price

This page focuses on cost drivers for claims-made professional liability. Insurance cost is an underwriting result, not a fixed menu price. A useful comparison keeps the underlying business facts and coverage terms as consistent as possible.

• services
• revenue
• client industry
• contract size
• limits/retention
• retroactive date
• claims/known circumstances

Compare quotes on the same basis

A lower premium may reflect a different deductible, narrower operations, lower limits, missing endorsements, a different carrier appetite, or a different estimate of payroll/revenue/property. Build a comparison table before deciding which quote is actually cheaper.

Cost questions worth asking

• Compare retroactive dates and reporting terms.
• A cheap quote with a newer retro date may not be equivalent.
• Check whether cyber, media, or contractual exposures need separate coverage.

Use published averages carefully

Insurers and marketplaces sometimes publish averages or medians based on their own customers. Those figures can be useful as context, but they are not a quote for a different industry, state, payroll, revenue level, vehicle schedule, property value, claims history, or coverage structure.

• Look for the date and sample behind any published cost figure.
• Check whether the figure is a mean, median, starting price, or selected customer segment.
• Use your own comparable quotes for the final decision.

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