Several factors, including business type and risks, contribute to the cost of professional services business insurance. Cost estimates are sourced from policies purchased by Insureon customers.
Business owner’s policy costs for professional services
Businesses that provide professional services, such as tutors and translators, pay a median premium of about $40 per month, or $500 per year, for a business owner’s policy. This policy combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.
A BOP protects against third-party injuries and property damage, along with damage to your own business property. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s licensed agents. You can also bundle this policy with professional liability insurance at a discount.
The cost of a BOP depends on your business property
Among professional services businesses that purchase a business owner’s policy with Insureon, 18% pay less than $400 per year and 57% pay between $400 and $800 per year. The cost varies depending on how much property coverage your business requires.
Which business owner’s policy limits do professional service companies choose?
Most professional service providers (92%) choose a business owner’s policy with a $1 million per-occurrence limit and a $2 million aggregate limit.
Professional liability insurance costs for professional services
Businesses that provide professional services pay a median premium of about $40 per month, or $500 per year, for professional liability insurance. Also called errors and omissions insurance, this policy offers critical coverage for service professionals, including legal fees related to accusations of mistakes or negligence.
Professional service businesses can combine this policy with a business owner’s policy or general liability policy for savings. The median cost of these packages varies between $65 and $95 per month, or $770 to $1,125 annually.
Your level of risk drives the cost of professional liability
Among professional service providers that purchase professional liability insurance with Insureon, 26% pay less than $400 per year and 43% pay between $400 and $800 per year. The size of your company, your industry, and whether you’ve been sued in the past help determine the cost of this policy, among other factors.
Professional liability policy limits for professional services
Most professional services providers (48%) choose professional liability policies with a $1 million per-occurrence limit and a $1 million aggregate limit.
Industry risks affect professional liability costs for professional services workers
High-risk businesses typically pay more for professional liability insurance than low-risk businesses. For professions where work mistakes can have serious financial repercussions for a client, such as publishers, you may find yourself paying more for this policy.
The annual median cost for a publisher is $1,542, while the median for a tutor is $340 – or less than $30 a month. As you can see, the cost varies significantly depending on your profession.
Workers’ compensation insurance costs for professional services
To meet your state’s requirements and avoid penalties, professional service providers with employees typically must purchase workers’ compensation insurance. This policy helps cover medical bills and partial lost wages when an employee suffers a work-related injury or illness.
The median premium is about $45 per month, or $550 per year for professional services workers. Policy cost is determined by your number of employees and their occupational risk, among other factors.
Workers' comp costs depend on the number of employees
Among professional service businesses that purchase workers’ compensation insurance with Insureon, 17% pay less than $300 per year and 40% pay between $300 and $600 per year. The cost depends on the number of workers, their level of occupational risk, and other factors.
General liability insurance costs for professional services
Professional service providers pay a median of less than $30 per month, or $350 per year, for general liability insurance. This policy provides protection for third-party bodily injuries and property damage, along with advertising injuries.
Insureon’s licensed agents typically recommend a business owner’s policy over a standalone general liability policy. A BOP combines general liability insurance with commercial property insurance to protect your business, and costs less than purchasing each policy separately.
Your industry risks affect general liability costs
Among professional service providers that purchase general liability with Insureon, 29% pay less than $300 per year and 63% pay between $300 and $600 per year. High-risk businesses tend to pay more for general liability.
General liability policy limits for professional services
Policy limits determine how much your insurer will pay on covered claims. A per-occurrence limit is the maximum your insurer will pay for a single incident, while an aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year. Higher limits cost more – and provide better coverage.
Most professional service providers (90%) choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit. As your small business grows, you may need to expand your policy limits.
Your business type and size affect the cost of general liability
Businesses with large premises, such as a medical billing office with two floors, typically pay more for general liability insurance than smaller businesses, such as a small publishing company. Your industry risk, building maintenance, years in operation, and your location will also affect your premium.
The annual median cost for a medical billing company is $437, while the median for a publishing office is $274 – or less than $25 a month. As you can see, the cost varies significantly across professions.
Compare quotes from trusted carriers with Insureon
Insureon’s professional services insurance agents work with top-rated U.S. carriers to find affordable coverage that fits your business. Apply today to compare multiple quotes with one free online application. Work with an account manager specializing in the unique risks of lawyers, tutors, and translators.