How much does business insurance cost?
Short answer
Most small professional firms in California pay somewhere between $500 and $5,000 per year for professional liability, and small business policies such as a BOP or cyber coverage commonly land in the same range. Product liability for ingestible supplement and peptide risks starts higher, often $5,000 to $50,000 or more. Every figure here is indicative and subject to underwriting review.
Typical ranges by coverage
Ranges reflect common placements for California small businesses and professional firms. They are not quotes and not offers of coverage.
| Coverage | Typical range | Common limit | What moves it |
|---|---|---|---|
| Lawyers professional liability (LPL) | $1,000 to $5,000+ per year for solo and small firms | Most firms start at $1M per claim / $1M aggregate; $1M/$3M is common for larger practices | Practice area, years in practice, revenue, limits, deductible, prior acts, claims historyLawyers quote |
| CPA / accountants professional liability | $1,000 to $5,000+ per year for small firms | Limits commonly start at $1M per claim; audit and attest work prices higher | Services performed, revenue, staff count, limits, deductible, claims historyCPA quote |
| Dentist malpractice | Low thousands per year for a general dentist | $1M per claim / $3M aggregate is a common structure because agreements reference it | Specialty, county, procedures, sedation use, hours, claims historyDentist quote |
| Tech E&O | $1,500 to $10,000+ per year for early-stage firms | Limits are usually set by the largest client contract, often $1M per claim to start | Revenue, services, contract sizes, AI or hardware exposure, limits, claims historyTech E&O quote |
| Insurance agents E&O | About $500 to a few thousand per year | $1M per claim / $1M aggregate is a common starting point for a small agency | Lines of business, premium volume, staff, carriers represented, claims historyAgents quote |
| Tax preparer E&O | About $300 to $1,500+ per year for solo preparers | Firms with staff and business return work price higher | Returns prepared, services offered, staff, limits, claims historyTax preparer quote |
| Mortgage broker E&O | About $500 to $2,500+ per year | Limits commonly start at $1M; lender agreements may require specific limits | Loan volume, loan types, company type, years in business, claims historyMortgage broker quote |
| Property manager E&O | $1,000 to $5,000+ per year | Priced on units under management and the services performed | Units managed, fund handling, HOA work, staff, limits, claims historyProperty manager quote |
| Private investigator professional liability | $1,000 to $3,000+ per year | Often paired with general liability for field work | Surveillance work, background screening, staff, limits, claims historyPI quote |
| EPLI | $1,000 to $5,000+ per year for a small employer | Limits commonly start at $1M per claim with a $1M or $2M aggregate | Headcount, industry, turnover, written policies and training, claims historyEPLI quote |
| Cyber liability | $1,000 to $5,000+ per year for a small business | Limits often start at $1M, rising with data volume and contract requirements | Records held, revenue, security controls, payment handling, claims historyCyber guide |
| BOP (general liability + property) | About $500 to $3,000+ per year for a small office or retail risk | Package pricing depends on property values and payroll | Location, property values, revenue, payroll, claims historyBOP quote |
| Workers compensation | Rated per $100 of payroll, not a flat premium | Rate depends on job classification and experience modification | Payroll by class code, claims history, carrier credits, safety programsBusiness coverage |
| Product liability for supplements and peptides | $5,000 to $50,000+ per year for ingestible product risks | RUO peptide programs are tiered, with the smallest tier starting around $7,500 in base premium | Product type, revenue, cGMP documentation, labeling, distribution channels, claims historySupplement quote |
Six factors that move premium
Limits and deductible
Premium tracks the limit you buy and the deductible you accept. Moving from $1M to $2M per claim raises premium, while a larger deductible lowers it, but only if the firm can absorb that first loss.
Revenue and payroll
Most professional and business policies are rated on revenue, payroll, or units of exposure. Carriers audit these figures at the end of the term, so understating them creates a balance due.
Services performed
Higher-hazard work costs more. Audit and attest work prices above bookkeeping, sedation dentistry above general dentistry, and AI or hardware exposure above pure software services.
Claims history
A prior claim, even one closed without payment, affects pricing and which carriers will quote. Clean loss runs are one of the few levers a buyer actually controls.
Retroactive date and prior acts
Coverage reaching further back carries more exposure. A quote that looks unusually cheap often reflects a later retroactive date rather than a better deal.
Carrier appetite
Two carriers can quote the same risk 40 percent apart because of appetite, not service. That is the practical argument for shopping renewal across markets.
Common questions about pricing
- How much does professional liability insurance cost in California?
- For most small professional firms, quotes commonly land between about $500 and $5,000 per year, depending on profession, revenue, limits, deductible, and claims history. Physicians, dentists doing surgical work, and specialty product risks price higher. Every figure is indicative and subject to underwriting review.
- Why are the ranges so wide?
- Because premium is rated on exposure, not on a fixed schedule. A solo lawyer with $250,000 in revenue and a $1M limit is a different risk from a five-attorney firm with $2M in revenue and prior claims, even though both are buying the same policy type.
- What is the cheapest way to lower my premium?
- Shop the renewal, keep loss runs clean, accept a deductible your cash reserves can absorb, and buy the limit your contracts actually require rather than the highest available. Do not lower the retroactive date to save money, because that trades real coverage for a small credit.
- Are these prices quotes?
- No. They are indicative ranges drawn from typical placements, and they are not offers of coverage. Final pricing and terms are set by the carrier after reviewing your application, and coverage is subject to policy terms, conditions, and exclusions.
- Do I pay the full premium up front?
- Often, but many carriers offer installment plans, and some programs allow a down payment with monthly installments. Ask about financing options when you request a quote.
Ranges are general information, not a quote or an offer of coverage. Final pricing and terms are set by the carrier after underwriting. CA License #0G81238.
Definitions behind these numbers
Short, plain-English answers to the coverage terms that come up most in this area.
- What is professional liability (E&O)?
- What is a BOP (business owners policy)?
- What is cyber liability insurance?
- What is a deductible vs. self-insured retention?
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