When shopping for insurance, one of the most common questions we hear is, “How much does a $1,000,000 liability insurance policy cost?” The answer is: it depends. Several important factors influence the final price of your policy. Understanding these can help you budget appropriately and find the right coverage for your needs.
Factors That Influence the Cost
- Type of Liability Insurance: Are you seeking general liability insurance for your small business, professional liability (errors and omissions) coverage, or a personal umbrella policy? Each type has its own pricing structure.
- Industry and Risk Profile: Higher-risk industries like construction or healthcare pay more than lower-risk sectors like consulting or online retail.
- Coverage Terms: Policy features such as deductibles, specific exclusions, and additional coverage options will impact your premium.
- Location: Insurance rates vary by state and even by city. Local regulations and claim trends influence pricing.
- Claims History: A clean claims history can reduce costs, while past claims might raise your premium.
- Business Size and Revenue: For businesses, factors like annual revenue, number of employees, and scope of operations are important considerations.
Typical Price Ranges
- General Liability Insurance (Small Businesses): $300 – $1,500 annually
- Professional Liability (Errors & Omissions Insurance): $800 – $2,500 annually
- Personal Umbrella Policies: $150 – $500 annually
- Contractor Liability Insurance: $1,000 – $3,000 annually
- Medical Malpractice Insurance: $4,000 – $20,000+ annually
Real-World Examples
- A small consulting firm could expect to pay around $500–$1,200 per year for $1 million in general liability coverage.
- A roofing contractor might see premiums closer to $2,000–$4,000 annually, given the higher risk of accidents.
Get a Tailored Quote
Because so many factors influence the cost, the best way to find out what you’ll pay is to request a personalized quote. Independent insurance agencies, like Eugene C. Yates Insurance Agency, work with multiple top-rated carriers to find you the most comprehensive coverage at the most competitive rate.
Final Thoughts
Liability insurance is a crucial investment that protects your finances and reputation. Whether you’re a business owner, a contractor, or an individual looking for additional protection, a $1,000,000 policy often offers a solid foundation of security at a surprisingly affordable rate.
Interested in finding out exactly what a $1,000,000 liability insurance policy would cost you? Contact Eugene C. Yates Insurance Agency today for a free, no-obligation quote!