E&O rates in California - sticker shock

Started by Carol J. — 6 months ago — 2 views
Just got quotes for E&O coverage here in Riverside. $4,200/year for $1M coverage seems insane. Is California really that much more expensive than other states?
Arkansas rates are about half that. California's litigation environment drives up all professional liability costs. Might be worth forming an LLC in Nevada or another business-friendly state.
Shop around. I've seen 50% differences between carriers for identical coverage. Also consider higher deductibles to lower premiums.
California does have higher E&O rates due to the legal climate, but don't let that discourage you from getting proper coverage. One lawsuit without insurance could cost far more than years of premiums.