Insurance Curator Understanding Errors & Omissions (E&O) — also called Professional Liability — pricing by revenue band is essential for budgeting, negotiating with carriers, and benchmarking your renewal. This guide focuses on the U.S. market (with examples from New York City, San Francisco, Chicago and Austin), shows realistic premium ranges, explains key drivers, and points to commercial carriers and tools you can use to get transparent quotes.
Quick overview: What affects E&O cost?
E&O premiums are driven by a mix of firm-level, industry, and geographic factors. The most influential include:
- Revenue size and billing model (higher revenue = larger exposure)
- Industry / professional class (technology, finance, healthcare vs. consultants)
- Claims history (loss runs) and severity
- Policy limits & retention/deductible
- Contractual risk transfer requirements
- Risk management controls (contracts, SLAs, peer review)
For more detail on core cost drivers, see Key Cost Drivers That Increase Your Professional Liability Insurance (Errors & Omissions) Premium.
Benchmarks by revenue band (U.S. market)
The table below presents typical annual premium ranges for primary E&O coverage (commonly $1M per occurrence / $2M aggregate) by revenue band in major U.S. markets. These are market benchmarks — actual quotes will vary by profession, claims history, and carrier appetite.
| Revenue band (annual) | Typical U.S. sample premium range (annually) | Common deductible | Notes / typical buyers |
|---|---|---|---|
| Under $250,000 | $400 – $1,500 | $0 – $2,500 | Solo consultants, small IT consultants, independent architects. Carriers: Hiscox, The Hartford small biz programs. |
| $250,000 – $1M | $800 – $3,000 | $1,000 – $5,000 | Small firms, boutique architects, small CPA firms (non-attest), marketing agencies. |
| $1M – $5M | $2,500 – $10,000 | $2,500 – $10,000 | Mid-sized consultancies, software dev shops, regional design firms. |
| $5M – $20M | $8,000 – $35,000 | $5,000 – $25,000 | Larger software consultancies, professional services shops with multi-state exposure. |
| $20M+ | $25,000 – $150,000+ | $10,000 – $100,000 | National/regional firms, high-risk tech products, financial services with large contracts. |
Sources informing these ranges include market surveys and carrier small-business programs (Hiscox, The Hartford) and broker pricing guides: Insureon’s professional liability cost whitepapers and carrier program pages. See Insureon’s overview of professional liability costs and sample program notes, and Hiscox’s small business professional liability details for baseline small-firm pricing:
- https://www.insureon.com/small-business-insurance/professional-liability-cost
- https://www.hiscox.com/small-business-insurance/professional-liability
- The Hartford professional liability program pages and sample quotes (carrier landing pages for small business E&O).
Real-world carrier examples and what they cost
- Hiscox (small business focus) — Known for fast online quoting for freelancers, consultants, and small agencies. Hiscox’s online programs often show starting annual premiums in the low hundreds for small independent consultants seeking $1M/$1M limits, depending on state (e.g., Texas, California, New York). Hiscox is commonly used in San Francisco and Austin for small tech consultancies. (See Hiscox small business E&O program.)
- The Hartford — Large small-business distribution with industry-specific rating. For small professional services firms in Chicago or New York, The Hartford’s E&O can be in the mid-hundreds to low thousands for $1M limits depending on exposures and deductibles.
- Chubb / CNA / Travelers — Mid-market carriers that underwrite higher exposures and complex tech or financial service risks. For firms with revenue $5M+, expect premiums in the mid-thousands to tens of thousands yearly, and substantially higher for high-risk technology products or regulated financial advice.
Note: carriers are selective by industry and state — a technology firm in San Francisco with third-party product risk will face higher rates than a B2B consultant in Austin.
How geography matters: NYC vs. San Francisco vs. Chicago vs. Austin
- New York City: Higher litigation exposure and higher limits demanded by contracts—premium pressure for professional firms, especially finance and law-adjacent services.
- San Francisco / Silicon Valley: Tech E&O for product/AI firms carries higher frequency/severity risk — higher premiums and stricter underwriting.
- Chicago: Midwestern rate environment but large corporate clients often require robust limits; mid-market firms can expect competitive yet substantial pricing.
- Austin: Competitive small business market with many startups/consultancies — lower baseline premiums for low-exposure firms but rising for product-based tech companies.
Limit selection and retention tradeoffs
- $1M/$1M policies suit many small firms; however contractually required limits are increasingly $2M–$5M for vendor contracts. Expect roughly:
- Moving from $1M to $2M limits: ~30–60% increase in premium
- Moving to $5M limits: can be 2x–4x the $1M premium depending on industry and claims profile
For negotiation strategies and benchmarking tools, review Using Benchmarking Tools to Negotiate Better Professional Liability Insurance (Errors & Omissions) Terms.
Typical pricing examples (illustrative)
- Solo management consultant, NYC, <$250k revenue: $600–$1,200/year for $1M/$1M with a $1,000 deductible (Hiscox / The Hartford retail channels).
- Small SaaS consultancy, San Francisco, $3M revenue, no major claims: $7,000–$18,000/year for $1M/$2M or $2M/$4M depending on product exposure (Chubb/CNA programs).
- Regional engineering firm, Chicago, $12M revenue: $20,000–$50,000+/year for layered primary and excess placements, higher if professional exposures include structural design failures.
(These examples reflect market tendencies and sample carrier program observations.)
How to get closer to the right price
- Gather three itemized quotes with identical limits and deductibles to compare rate, exclusions, retroactive dates, and claims-made vs. occurrence terms.
- Provide complete loss history and risk-control documentation (contracts, peer review policies, testing/QA practices)—these materially reduce underwriting conservatism.
- Use benchmarking data and industry programs to negotiate credits or retentions; see How to Get Transparent Quotes for Professional Liability Insurance (Errors & Omissions) — A Buyer’s Checklist.
Discounts and credits to watch for
- Risk management programs (ISO-standard policies, written QA, contractual risk language)
- Bundling with D&O / Cyber policies (package credits)
- Low claims activity / clean loss runs
Review the mechanics in Discounts and Credits: How to Lower Professional Liability Insurance (Errors & Omissions) Costs Legally.
Closing checklist before you buy
- Confirm required limits in client contracts (and whether they require additional insured or waiver of subrogation).
- Standardize comparison: request quotes for the same limits, deductible, and retroactive date.
- Request carrier appetite letters for your industry (especially for software/AI, financial services).
- Ask for loss-sensitive programs or loss control credits if you can demonstrate good controls.
Sources and further reading
- Insureon: Professional Liability Cost Overview — https://www.insureon.com/small-business-insurance/professional-liability-cost
- Hiscox: Small Business Professional Liability — https://www.hiscox.com/small-business-insurance/professional-liability
- The Hartford: Professional Liability Insurance information pages (carrier website search for small business professional liability)
For deeper reading and model scenarios, see:
- How Much Does Professional Liability Insurance (Errors & Omissions) Cost? Average Premiums by Profession
- Comparing E&O Prices: What to Look for Beyond the Premium for Professional Liability Insurance (Errors & Omissions)
If you want, prepare a one-page benchmarking brief for your firm (revenue, industry, current limits, loss history) and use it to request three apples-to-apples quotes from Hiscox, The Hartford, and a specialty underwriter (Chubb/CNA) for a true market comparison.