Professional Liability vs General Liability Cost Comparator
Compare estimated annual premiums for Professional Liability (Errors & Omissions) and General Liability insurance based on your business profile, revenue, and coverage limits.
Formulas Used
Professional Liability (E&O) Annual Premium:
PL_Base = Revenue × Industry_PL_Rate (% of revenue, industry-specific)
PL_Base = clamp(PL_Base, Industry_Floor, Industry_Ceiling)
PL_Premium = PL_Base × Limit_Factor × Deductible_Factor
× Claims_Factor × Location_Factor × Employee_Factor
General Liability (CGL) Annual Premium:
GL_Base = (Revenue ÷ 1,000) × Industry_GL_Rate ($ per $1,000 revenue)
GL_Base = clamp(GL_Base, Industry_Floor, Industry_Ceiling)
GL_Premium = GL_Base × Limit_Factor × Deductible_Factor
× Claims_Factor × Location_Factor × Employee_Factor
Combined Bundle Premium:
Combined = (PL_Premium + GL_Premium) × (1 − 0.08) [8% bundle discount]
Key Rating Factors:
- Limit Factor: Relativities vs. $1M baseline (ISO-based): 0.65× ($250K) → 1.90× ($5M) for PL; 0.72× ($300K) → 1.28× ($2M) for GL
- Deductible Credit: Higher deductibles reduce premium: $0 = 1.00×, $25K = 0.70× (PL); $0 = 1.00×, $5K = 0.83× (GL)
- Claims Surcharge: 0 claims = 1.00×; 1 = 1.20× (PL) / 1.15× (GL); 3+ = 1.75× (PL) / 1.60× (GL)
- Location Factor: Low-risk states = 0.88–0.90×; High-risk states (CA, NY, FL, TX) = 1.18–1.22×
- Employee Factor: 1–5 employees = 1.00×; 100+ employees = 1.60–1.75×