Estimate your professional liability premium
Fill the fields below, then submit to see your estimate above this form.
Example data table
| Profession | Revenue | Employees | Limit | Deductible | Claims | Estimated annual premium |
|---|---|---|---|---|---|---|
| IT Services | $250,000 | 3 | $1,000,000 | $2,500 | 0 | $2,480.00 |
| Accounting | $500,000 | 6 | $2,000,000 | $5,000 | 1 | $6,950.00 |
| Legal Services | $1,200,000 | 12 | $5,000,000 | $10,000 | 2 | $34,800.00 |
Formula used
This calculator estimates premium using a transparent multiplier model:
- Base Premium = max(650, (Revenue ÷ 1,000) × Profession Rate).
- Multipliers include limit, deductible, claims, experience, employees, territory, data, client profile, retro, contract size, term, and optional enhancements.
- Risk control credits reduce premium but are floored to avoid excessive discounts.
How to use this calculator
- Choose your currency, profession, and enter annual revenue.
- Set employees, experience band, and recent claim count.
- Select coverage limit, deductible, retro coverage, and term.
- Adjust territory, data sensitivity, and client profile.
- Pick controls and enhancements to match your operations.
- Click Calculate premium; results appear above the form.
- Use CSV or PDF buttons to download your estimate.
Revenue-based baseline pricing
The calculator starts with a revenue-driven base premium: Base = max(650, (Revenue ÷ 1,000) × profession rate). For example, $250,000 revenue at a 4.0 rate produces $1,000 before multipliers. Higher‑risk classes, like legal or health services, use higher rates, which can double the baseline at the same revenue.
Limits and deductibles shape volatility
Coverage limits scale cost nonlinearly. In the model, $250k uses a 0.65 factor, $1M is 1.00, $2M is 1.35, and $5M is 1.90. Deductibles offset that exposure: a zero deductible adds about 15% (1.15), while $10k reduces cost to 0.80 and $25k to 0.72. The chart compares annual premium across limits using your current inputs.
Claims and experience drive underwriting posture
Claims history is one of the strongest levers. Zero claims gets a modest credit (0.95), one claim moves to 1.15, two to 1.35, and three or more to 1.65. Experience can partially counterbalance this: under one year is 1.25, 4–7 years is 1.00, and 16+ years is 0.90. Together, these factors reflect expected frequency and severity trends.
Operational risk controls and add-ons
Process maturity reduces errors. Written procedures, contract review, and staff training apply credits of 0.96, 0.97, and 0.98, with a discount floor to prevent unrealistic pricing. Optional enhancements can add protection and premium: cyber endorsement 1.12, defense outside limits 1.07, consent to settle 1.03, and occurrence form 1.10. Select only what matches your actual operations.
Using the estimate for budgeting
Use the annual premium for cash‑flow planning and the monthly figure (Annual ÷ 12) for subscriptions or escrow. Employee count adds about 4% per extra person, capped near 40%. Territory moves from 1.00 local to 1.18 international, while sensitive data and healthcare clients can push factors to 1.15 each. Multi-year terms may discount to 0.95. Run scenarios by changing limits, deductibles, and retro coverage (0.98 to 1.12) to see tradeoffs. A simple recommended-limit heuristic targets the larger of 5× average contract value or 50% of revenue, capped between $500k and $5M.
FAQs
What does professional liability insurance usually cover?
It typically covers third‑party allegations of negligence, errors, or omissions in professional services, including defense costs. Coverage details vary by policy wording, exclusions, and retroactive dates, so always read the insuring agreement and definitions.
Why does the calculator include claims-made versus occurrence?
Claims-made coverage generally responds when a claim is made during the policy period and can depend on retro dates. Occurrence coverage responds based on when the act happened, so it is often modeled with an added cost factor.
How should I pick the right coverage limit?
Start with your largest contract and realistic worst-case defense costs. Many firms choose limits near 5× average engagement size, then adjust for client requirements and risk tolerance. This tool also shows a recommended-limit heuristic.
How can I reduce cost without sacrificing too much protection?
Consider a higher deductible, improve documented procedures, formalize contract review, and run staff training. These controls can earn modeled credits while preserving limits. Also validate optional enhancements; only select endorsements that match your exposure.
Is the estimate a binding insurance quote?
No. It is an educational estimate for budgeting and scenario testing. Insurers price using underwriting, loss data, and policy wording that can change the final premium. Use it to prepare, then confirm with a licensed broker.
Which inputs tend to move results the most?
Claims history, profession class, limit, deductible, and territory are often the biggest drivers. Data sensitivity, client type, and retro coverage can also add meaningful load. Run a few scenarios to see your most sensitive levers.