Insurance Curator Professional liability (Errors & Omissions, or E&O) is often the single most important coverage for knowledge‑based businesses in the USA — consultants, architects, IT firms, accountants, and healthcare professionals. Choosing the right broker determines whether you get the proper coverage, fair pricing, and strong claims advocacy when it matters most.
This buying guide (U.S. focus: New York City, Los Angeles, Chicago, Houston, San Francisco) gives the exact questions to ask brokers, what answers you should expect, realistic pricing context, and how to compare proposals like a pro.
Why the broker matters
A skilled broker does more than find the cheapest policy. A good broker:
- Matches coverage language to your operations (avoid gaps and ambiguous exclusions).
- Places with the right carriers for your industry and claim profile.
- Negotiates pricing, retentions and endorsement language.
- Advocates on claims and manages renewals, audits and mid‑term changes.
If you want a procedural guide for how brokers add value, see What Good Brokers Do Differently When Placing Professional Liability Insurance (Errors & Omissions).
Quick pricing context (U.S. market)
- Small professional businesses typically pay $400–$2,500 per year for basic E&O policies; more complex practices or higher limits commonly exceed $5,000–$20,000/year. (Estimates reflect marketplace ranges for small firms and vary by profession, limits, and claims history.) Source: Insureon, The Hartford, Hiscox.
- Example observed ranges by city (for a solo/2‑person consultant seeking $1M/$1M limits):
- New York City / San Francisco: $1,200 – $3,500 / year
- Los Angeles / Chicago: $900 – $2,500 / year
- Houston / Dallas: $700 – $2,000 / year
Sources:
- Insureon — Professional liability cost overview: https://www.insureon.com/professional-liability-insurance/cost
- The Hartford — Professional liability information: https://www.thehartford.com/professional-liability-insurance
- Hiscox — Small business professional liability: https://www.hiscox.com/small-business-insurance/professional-liability
Note: pricing varies by industry, limit, deductible/retention, prior claims, contract wording, and state regulatory environment.
Top categories of questions to ask any broker
Ask these during the first call and again when you receive proposals. Record answers and compare.
1) Experience & specialization
- How many years have you placed E&O for businesses in my industry and in my state (e.g., New York, California, Texas)?
- Can you list 2–3 clients like mine (size and industry) for whom you placed E&O in the past 24 months?
- Do you have underwriter relationships with carriers that specialize in my sector (e.g., tech E&O vs. healthcare)?
What to expect: A high‑value broker should name carriers and reference recent placements and not speak only in generalities.
2) Carrier panel, appetite & placement strategy
- Which carriers do you utilize for accounts like mine and why?
- Do you place with admitted carriers in my state or use surplus lines where necessary?
- If you can’t place with standard markets, what’s your surplus lines strategy?
What to expect: Brokers should explain carrier strengths (claims handling, coverage broadness) and why each carrier is chosen.
3) Coverage specifics and contract alignment
- Will the policy provide full retroactive coverage and prior acts protection?
- How do your proposed forms handle contractual liability, subcontractor vicarious liability, and defense outside the limits?
- What exclusions are nearly always negotiated away for my trade?
What to expect: Detailed commentary about standard endorsements and optional language for your professional exposures.
4) Claims advocacy & service levels
- Who handles claims communication — your office or the carrier directly?
- What is your role in a claim? Can you provide examples where you helped negotiate favorable claim outcomes?
- How quickly do you provide claim response support (SLA)?
What to expect: Examples and metrics (e.g., average claim response time, attorney network access).
5) Fees, transparency & conflicts
- How are you compensated — commission, fee, or hybrid? What percentage or amount should I expect?
- Will you disclose any contingent commissions or compensation from carriers?
- Are there any markups or broker fees on premiums, audits, or policy issuance?
What to expect: Full disclosure of broker compensation and potential conflicts of interest.
6) Proposal comparison & binding timeline
- What information do you need to bind coverage and how long will proposals be valid?
- Do you provide a side‑by‑side comparison of coverage, limits, retentions and exclusions?
- Will you assist with RFP documents or help review carrier contract language?
What to expect: A professional broker will deliver a comparative matrix and help with drafting RFPs — see RFP Template Items to Include When Seeking Professional Liability Insurance (Errors & Omissions) Quotes.
Practical evaluation checklist (use at meetings)
- Broker has placed E&O for my profession in the past 12 months
- Named carriers and provided recent placement examples
- Explains coverage differences in plain language
- Discloses compensation and fees in writing
- Provides claims examples and service SLA
- Delivers a comparative proposal spreadsheet and recommendations
If you want a structured tool to compare proposals, review How to Compare Professional Liability Insurance (Errors & Omissions) Proposals: A Practical Spreadsheet Guide.
Sample interview script (concise)
- “Tell me about 3 E&O placements you’ve done for [my trade] in [my state]. Who were the carriers and why?”
- “For my revenue size ($X) and $1M/$1M limits, which carrier would you prefer and why?”
- “Show me the last claim where you intervened and the outcome.”
- “Please provide your fee schedule and any carrier compensation arrangements in writing.”
- “Can you deliver a side‑by‑side coverage comparison and a redlined policy form within 72 hours?”
Carrier comparison snapshot
| Carrier | Typical small‑firm range (annual) | Best for | Notes |
|---|---|---|---|
| Hiscox | $400 – $1,800 | Solo consultants, small tech shops | Fast online quoting and flexible small‑business forms — good for low‑complexity accounts. (See Hiscox) |
| The Hartford | $500 – $2,500 | Professional services, mid‑market | Large underwriting/broader distribution; strong claims management. (See The Hartford) |
| CNA / Chubb (wholesale) | $1,000+ | Complex or high‑risk professions | Broader capacity, global programs; higher premiums for tailored forms. |
(Prices are illustrative marketplace ranges; actual quotes will vary by state, revenue, and claims history. Sources: Insureon, The Hartford, Hiscox.)
Red flags to watch for
- Broker won’t disclose compensation or provides vague answers about fees.
- No examples of recent similar placements or client references.
- Refusal to provide redlines of proposed policy forms.
- Push to bind with a carrier without providing a written comparative analysis.
For deeper carrier vetting, see Red Flags When Selecting a Carrier for Professional Liability Insurance (Errors & Omissions).
After you pick a broker: what good brokers help with
- Drafting and issuing clear RFPs for competitive quoting.
- Negotiating endorsements (e.g., defense outside the limits, extended reporting periods).
- Managing renewals, audits and mid‑term policy changes (lifecycle tasks). Learn more: Lifecycle Management: Renewals, Audits and Policy Changes for Professional Liability Insurance (Errors & Omissions) Programs.
Final checklist before you bind
- Signed broker engagement and fee disclosure
- Side‑by‑side proposal comparison accepted
- Redlined policy form reviewed by counsel (if complex)
- Certificate and policy issued; claims contact confirmed
Sources and further reading
- Insureon — Professional liability cost overview: https://www.insureon.com/professional-liability-insurance/cost
- The Hartford — Professional liability insurance: https://www.thehartford.com/professional-liability-insurance
- Hiscox — Professional liability insurance: https://www.hiscox.com/small-business-insurance/professional-liability
For practical tools to evaluate proposals and negotiate terms, also see How to Use a Broker to Bundle Professional Liability Insurance (Errors & Omissions) With Other Lines for Better Pricing.