The answer
Most small professional firms buy their first professional liability policy at a $1M per claim limit for somewhere between $500 and $5,000 a year. Tax preparers and mortgage brokers sit at the bottom of that band, lawyers and CPAs in the middle, technology firms and dentists above it, and ingestible product risks far outside it. Raising limits is not linear: doubling to $2M / $2M typically lands near 1.6 to 2.0 times the base premium. Deductibles trade cash at the time of a claim for a modest credit now. State matters less than practice mix, revenue, and claims history, but it still moves where a risk lands inside the band.
Premium ranges by profession
Annual premium at a $1M per claim limit, clean five-year loss history, US-based firm under 25 professionals, and a deductible between $2,500 and $10,000. Change any of those assumptions and the range moves.
| Profession | Indicative annual premium | Typical starting limit | Biggest pricing driver |
|---|---|---|---|
| Lawyers (solo and small firm) | $1,000 to $5,000 | $1M / $1M, moving to $1M / $3M for litigation | Practice area, revenue, prior acts date, claims history |
| CPAs and accounting firms | $1,000 to $5,000 | $1M / $1M; audit and attest work prices higher | Services performed, revenue, staff count, claims history |
| Dentists | Low thousands | $1M / $3M, because practice and payer agreements reference it | Specialty, procedures, sedation, county, claims history |
| Technology and SaaS firms | $1,500 to $10,000 | $1M / $1M, set by the largest client contract | Revenue, contract sizes, AI or hardware exposure, claims history |
| Insurance agents and agencies | $500 to a few thousand | $1M / $1M for a small agency | Lines written, premium volume, staff, carriers represented |
| Tax preparers | $300 to $1,500 | $1M / $1M; firms with business return work go higher | Return volume, services, staff, claims history |
| Mortgage brokers | $500 to $2,500 | $1M / $1M, or the limit a lender agreement requires | Loan volume, loan types, company type, claims history |
| Property managers | $1,000 to $5,000 | $1M / $1M, rising with units under management | Units managed, fund handling, HOA work, claims history |
| Private investigators | $1,000 to $3,000 | $1M / $1M, often paired with general liability | Surveillance and screening work, staff, claims history |
| Employers buying EPLI | $1,000 to $5,000 | $1M / $1M or $1M / $2M | Headcount, industry, turnover, written HR practices |
| Cyber liability (small business) | $1,000 to $5,000 | $1M, rising with records held and contract terms | Records held, revenue, security controls, payment handling |
| BOP (property plus general liability) | $500 to $3,000 | $1M per occurrence | Property values, payroll, location, claims history |
| Supplement and peptide product liability | $5,000 to $50,000 | Varies by revenue tier; smallest programs start lower | Product type, revenue, cGMP documentation, labeling |
What raising your limit actually costs
Premium indices below are relative to a $1M / $1M limit on the same policy, at the same deductible. Carriers weight limits differently, so each step is shown as a band rather than a single multiplier.
| Limit structure | Premium index | When it fits |
|---|---|---|
| $500K / $500K | 0.7 to 0.85 | Chosen when no contract sets a floor. One defense can consume the full limit, so this fits low-severity practices only. |
| $1M / $1M | 1.00 (baseline) | The most common starting point across professions, and the limit most client and lender agreements reference. |
| $1M / $2M | 1.2 to 1.4 | Adds aggregate room for multiple claims in one policy year without raising the per-claim ceiling. |
| $2M / $2M | 1.6 to 2.0 | Used when a single matter can exceed $1M, such as commercial litigation, M&A work, or large technology contracts. |
| $3M / $3M | 2.1 to 2.8 | Firm or vendor requirements usually drive this, not preference. Expect underwriting questions about the largest matter. |
What a deductible buys you
The deductible is the amount your firm pays per claim before the carrier responds. Raising it lowers premium, but the credit is only worth taking if the firm can fund that first loss without changing how a claim is defended.
| Deductible | Effect on premium | Fits |
|---|---|---|
| $0 to $2,500 | Highest premium of the options | Firms that want every claim handled without cash outlay, including small nuisance suits. |
| $5,000 | A modest credit off the base premium | The most common choice for solo and small professional practices. |
| $10,000 | A larger credit, with a real cash commitment per claim | Firms with reserves and a low claim frequency. |
| $25,000 or more | The largest credit available on most programs | Larger firms that can self-fund defense costs up to that amount. |
What changes by state
PRIA Brokers writes coverage in California, Texas, Nevada, Florida, Illinois, New Jersey, and Delaware. State does not set the price on its own, but it changes venue, litigation climate, and how many carriers will quote a given risk.
California
The largest share of PRIA placements. Venue and jury pools in Los Angeles, the Bay Area, and San Diego price differently, and wage-and-hour activity keeps EPLI pricing firm.
Texas
Pricing is often competitive for professional firms, with premium driven more by practice area and revenue than by state rules.
Nevada
A smaller market with fewer carriers writing some professions, so shopping matters more than in California.
Florida
Litigation volume and property exposure push both professional liability and business coverage higher than the national middle.
Illinois
Cook County venue drives claims costs for firms litigating there, while downstate risks price closer to the middle of the range.
New Jersey
A dense, regulated market where professional firms often carry higher limits because institutional clients require them.
Delaware
Corporate and fiduciary work dominates, so limits track deal size and entity work rather than headcount.
How these numbers were built
- Ranges are compiled from PRIA's own quote activity across A-rated carriers, plus published program minimums for each profession. They describe placements that actually bind, not advertised teaser rates.
- Each row assumes a $1M per claim limit, a clean five-year loss history, a US-based firm with under 25 professionals, and a deductible between $2,500 and $10,000. Moving any of those assumptions moves the number.
- Premium indices in the limit table are relative to a $1M / $1M limit at the same deductible and are shown as a band because carriers weight limits differently.
- State notes describe what changes in each market. They are not rate filings, and no state figure here should be read as a required premium or a statutory requirement.
- Every figure is indicative and subject to underwriting. No number on this page is a quote, an offer of coverage, or a promise of pricing.
Reviewed by Dean Hamid, CLCS, AINS, Founder and Principal Broker · California Insurance License #0G81238 · Last reviewed November 2026.
To cite this page: PRIA Brokers, Professional Liability Insurance Cost Benchmarks, last reviewed November 2026, https://www.priabrokers.com/insurance-cost-benchmarks.
Cost benchmark questions
How much does professional liability insurance cost in 2026?
For most small professional firms, indicative annual premium falls between about $500 and $5,000 at a $1M per claim limit. Tax preparers and mortgage brokers sit at the low end, lawyers and CPAs in the middle, technology firms and dentists higher, and ingestible product risks far above that band. Every figure is subject to underwriting.
Why do two identical firms get different premiums?
Because carriers rate on exposure and appetite, not on a schedule. Practice area mix, revenue, staff, prior acts date, deductible, and claims history all move the number, and two carriers can legitimately quote the same risk 40 percent apart. Shopping the renewal is the only reliable way to find that spread.
Does raising my limit from $1M to $2M double my premium?
No. In typical placements, moving from $1M / $1M to $2M / $2M lands somewhere around 1.6 to 2.0 times the base premium, and moving to $1M / $2M lands around 1.2 to 1.4 times. The step is rarely linear because defense costs and frequency, not just severity, drive the rate.
Does a higher deductible always save money?
It lowers premium, but only makes sense if the firm can fund that first loss without strain. A $25,000 deductible that forces a firm to settle a defensible claim for cash-flow reasons has cost more than it saved.
Do these ranges apply outside California?
The bands hold reasonably well across the seven states PRIA writes, but state venue, litigation climate, and carrier appetite shift where a risk lands inside the band. California, Florida, and dense metro venues tend toward the upper half; smaller markets can land lower for the same profession.
How should I cite this page?
Cite as: PRIA Brokers, Professional Liability Insurance Cost Benchmarks, last reviewed November 2026, https://www.priabrokers.com/insurance-cost-benchmarks. Ranges are indicative planning figures, not quotes.
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