I ran a live simulation. I am a Senior Java Developer, $150,000 revenue, based in Austin, Texas. No prior claims. I want $1 Million in Professional Liability coverage. Here is what the market looks like in 2026.
Key Takeaways
- Inflation Impact: Rates are up ~15-20% since 2024 due to legal inflation and AI uncertainty.
- The “Class Code” Matters: “App Developer” is more expensive than “Web Designer.” “Security Consultant” is double both.
- Revenue Bands: Premiums jump at $100k, $250k, and $500k revenue milestones.
- Cyber Bundle: Adding Cyber doubles the price but is essential.
The “Why”: The Rating Factors
The Trap: Why does my friend pay $30 and I pay $90?
- State: Texas (litigious) is more expensive than Ohio.
- Services: “Custom Software” (high risk of bugs) > “WordPress Sites” (low risk).
- Limit: $1M is standard. $2M costs 1.6x more (not double).
The Investigation: The 2026 Price Check
1. The Budget Option (Next / Thimble)
- Quote: $45 – $60 / month.
- Coverage: Basic E&O. Strict exclusions. Good for satisfying a contract requirement.
2. The Standard Option (Hiscox / Hartford)
- Quote: $75 – $110 / month.
- Coverage: Broader definitions. Includes “Copyright” and “Breach of Contract” defense. Better for career freelancers.
3. The Premium Option (Chubb / Coalition)
- Quote: $150 – $250 / month.
- Coverage: Includes robust Cyber, Crime, and Media Liability. This is what you buy if you have real assets to protect.
[IMAGE: Bar chart showing “Annual Cost” comparison of 3 tiers]
Comparison Table: 2026 Rate Card (Estimates)
| Carrier | Monthly Cost | Deductible | Cyber Included? |
| Next | $48 | $1,000 | No |
| Hiscox | $85 | $500 | Endorsed (+$20) |
| Coalition | $180 | $2,500 | Yes (Active) |
Step-by-Step Action Plan
- Determine Needs: Just a COI? Go Budget. Real protection? Go Standard.
- Adjust Deductible: Raising deductible from $500 to $2,500 can drop premium by 20%.
- Pay Annually: Saves 10-15% vs monthly.
- Audit Revenue: If you made less than projected, ask for a refund/credit at audit (if auditable policy).
FAQ
Why is it more than my car insurance?
Because a car crash costs $30k. A failed software project costs $300k.
Is it tax deductible?
Yes, 100% business expense.
Does credit score affect price?
Yes, in many states, insurance scoring is used for commercial policies.