What should be the estimated price for a Professional Liability insurance (with coverage for, a minimum, $1M)?
Sunday, May 15th, 2011 at
12:24 am
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That will depend in part on the profession. Often, professional liability insurance is erroneously requested from companies or individuals that are not required to carry it. It basically applies only to licensed and credentialed "professionals" such as architects, engineers, physicians, etc.
I used to work for a construction subcontractor and project owners would often send us paperwork requesting proof of that coverage. We always had to reply that it is not required for our operations. If your company is doing design/build services, it WOULD be required.
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It doesn’t cost that much. But why not go for a full business policy?
Call some local agents for some quotes. Stick with the big companies like Farmers, Allstate, State Farm, ect. Each state has different rates so just call some local agents.
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You are flat out NOT going to get coverage for contractual liability, oral contracts. Ain’t gonna happen.
And you’re not going to get professional liability, without naming which LICENSED profession you’re trying to insure.
Coverage is BASED on gross sales, or payroll, or the number of licensed professionals – none of which you mentioned.
For an advertising agency, you need to budget a minimum of $5,000 for insurance. But there’s nowhere NEAR enough information for a "real" quote – it could be ten or a hundred times that, depending on a wide variety of factors that you flat out didn’t mention.
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There are so many variables that it is hard to say. With what you have put and if it is really just a home business you are the only employee I would venture a guess at about $1250 a year. Of course most will have payment plans. The companies that excel in this arena are independent insurance agent companies, so either find a local independent insurance agent online, or always feel free to contact myself.
There are a few other coverages that you need to protect your ASSets, but it appears you are needing these to satisfy a contract.
The companies that are the best for what you require are The Hartford, Travelers, and Chubb.
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