Procurement Market Intelligence Report
Professional Indemnity Insurance
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Professional Indemnity Insurance Global Overview
Definition
Summary
Professional indemnity insurance, also known as professional liability insurance or errors and omissions insurance, provides coverage against negligence claims made by clients. In medical professions, it is commonly referred to as medical malpractice insurance. Specifically, it covers the cost of defending a claim in court and pays any damages awarded to the litigant. Different types of indemnity include repairs, replacement, cash payments, and reinstatement. The primary suppliers are direct insurance carriers and agents and brokers. Key buyers include healthcare providers, law firms, and technology companies.
This Report Includes:
- Professional Liability Insurance
- Errors & Omissions Insurance
- Medical Malpractice Insurance
Not in this Report:
- Building Contents Insurance
- Cargo Insurance
- Reinsurance
- Business Interruption Insurance
Global Professional Indemnity Insurance Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 584,870 |
| #2 United States | 415,700 |
| #3 Europe | 374,555 |
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Geography Drilldown - US
Average Cost of Professional Indemnity Insurance
United States
2026 Market Pricing$240.00 to $XX,XXX.XX
per employee per yearAverage Price
Prices in the Professional Indemnity Insurance market range from $240.00 to $XX,XXX.XX, depending on Level of Risk, Number of Employees, Limit of Indemnity and Deductible. For example, lower prices are associated with Consultants ($440 to $2,000 per employee per year), whereas higher prices are associated with Individual healthcare professionals ($4,000 to $50,000 per employee per year).
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Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Professional Indemnity Insurance Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Professional Indemnity Insurance market, prices in the US have grown 1.8% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Professional Indemnity Insurance
Total cost of ownership is Low in the Professional Indemnity Insurance market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Emergencies may raise the total cost of ownership unexpectedly.
Negotiated Before
Financing
Other Fees
Billed During
Additional Fees
Unforeseen
Emergencies
Hidden Fees
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -0.5 in the United States. Buyer power is most positively impacted by Availability of Substitutes. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Portfolio Management Firms
- Reinsurance Carriers
- Office Supply Stores
- Computer & Packaged Software Wholesalers
- Internet Service Providers
2nd
Tier Suppliers
- Securities Brokerage Firms
- Insurance Brokerage Firms & Agencies
- Art & Office Supply Manufacturers
- Computer Manufacturers
- Telecommunication Networking Equipment Manufacturers
Biggest Professional Indemnity Insurance Suppliers in the US by Revenue
The largest Professional Indemnity Insurance vendors by revenue in the US are Arthur J. Gallagher & Co., AXA AS and Aon Plc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Berkshire Hathaway Inc. | Global | Omaha, NE | >10,000 | 5-10 | ||||
| Progressive Casualty Insurance Company | International | MAYFIELD VILLAGE, OH | >10,000 | 5-10 | ||||
| State Farm Mutual Automobile Insurance Co | National | Bloomington, IL | >10,000 | 5-10 | ||||
| Zurich Insurance Group Ltd. | Global | Zurich, CH | >10,001 | < 5 | ||||
| Allstate Corp | International | NORTHBROOK, IL | >10,000 | < 5 | ||||
| Chubb Ltd | Global | ZURICH | >10,000 | < 5 | ||||
| The Travelers Companies, Inc. | Global | SAINT PAUL, MN | >10,000 | < 5 | ||||
| American International Group, Inc. | Global | NEW YORK, NY | >10,000 | < 5 | ||||
| Marsh & Mclennan Companies, Inc. | Global | NEW YORK | >10,000 | < 5 | ||||
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Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Professional Indemnity Insurance market is 13.2% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is stagnating, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Insurance providers face low bankruptcy risk. Positive demand trends for professional indemnity insurance further lower vendor risk and decrease the risk of service discontinuity for buyers.
Market share concentration for professional indemnity insurance is low, with the top four suppliers in the market accounting for less than 30.0% of total revenue. This encourages price competition and benefits buyers.
Supply chain risk for professional indemnity insurance has been moderate, indicating that providers are more likely to face uncertain expenses due to supply chain disruptions. However, providers do not rely extensively on upstream suppliers to perform services.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises
Supplier Information
Berkshire Hathaway Inc.
Berkshire Hathaway Inc. is a public company operating globally in the utilities, manufacturing and finance and insurance sectors. The company's offerings include truck trailers, natural gas, commercial auto & truck insurance, professional indemnity insurance, group travel insurance. Founded in 1929, the company... Subscribe to learn more
Progressive Casualty Insurance Company
Progressive Corporation is an insurance holding company that operates throughout the United States. Its insurance subsidiaries write personal and commercial auto insurance, personal residential property insurance, and insurance for motorcycles, watercraft, and other recreational vehicles, and offer business-related... Subscribe to learn more
State Farm Mutual Automobile Insurance Co
State Farm Mutual Automobile Insurance Co is a private company operating nationally in the finance & insurance sector. The company's offerings include commercial auto & truck insurance, professional indemnity insurance and life insurance. Founded in 1922, the company is currently headquartered in Bloomington,... Subscribe to learn more
Allianz Se
Allianz Se is a public company operating globally in the finance & insurance sector. The company's offerings include investment management services, marine insurance, business interruption insurance, supply chain insurance, professional indemnity insurance. Founded in 1890, the company is currently headquartered... Subscribe to learn more
Allstate Corp
Allstate Corp is a public company operating internationally in the finance and insurance sector. The company's offerings include product warranty insurance, building & contents insurance, commercial auto & truck insurance, business interruption insurance and professional indemnity insurance. Founded in 1931,... Subscribe to learn more
American International Group, Inc.
American International Group, Inc. is a public company operating globally in the finance and insurance sector. The company's offerings include product warranty insurance, building & contents insurance, commercial auto & truck insurance, cargo insurance, marine insurance. Founded in 1919, the company is currently... Subscribe to learn more
Aon Plc
Aon plc is engaged in the marketing and servicing of a range of management and financial services spanning risk managementm insurance and reinsurance brokerage, and human resource consulting and outsourcing. Its business is divided into two segments: Risk Solutions (risk management through insurance advisory,... Subscribe to learn more
Arthur J. Gallagher & Co.
Arthur J. Gallagher & Co. is a public company operating globally in the finance and insurance and professional, scientific and technical services sectors. The company's offerings include risk management consulting services, compensation & benefits planning services, insurance claims processing services, professional... Subscribe to learn more
AXA AS
AXA AS is a public company operating in the finance and insurance sector. The company's offerings include marine insurance, professional indemnity insurance, group travel insurance, life insurance, directors & officers liability insurance. The company is currently headquartered in NEW YORK, New York, United... Subscribe to learn more
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Procurement Management KPIs for the Professional Indemnity Insurance Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Order Value and Average Resolution Time. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Termination and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Order Value |
|
Total revenue Number of policies |
The average order value represents the revenue generated from the average order. The average order value can be used to assess a company’s ability to provide extensive coverage for large buyers. |
| Average Resolution Time |
|
Total resolution time Number of resolved tickets |
The average resolution time represents the average amount of time it takes to resolve a support ticket. The average resolution time can be used to determine a company’s support responsiveness with claims and other issues. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Experience and Expertise
What experience do your employees have selling insurance policies? How long have they been selling professional indemnity insurance?
What certifications and licenses do your employees hold?
Timeliness
If I make an amendment to the policy, how long will it take for this to be processed and put into effect?
On average, how long does it take for you to process a claim and then pay it out?
Price
If I pay the entire premium prior to the start of the policy, what discounts do I receive?
What is the interest rate for paying in monthly, quarterly or semi-annual installments?
The ultimate prep for procurement negotations
View all 34 negotiation questions for this category when you subscribe.
Professional Indemnity Insurance RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organizations, particularly their core operations.
Buyers should indicate the size and geographic location of their organizations.
Statement Of Need
Buyers should provide a description of the scope of services being sought, including any additional insurance coverage or related services they wish to procure.
Buyers should include the number of employees that will need coverage and a description of their regular responsibilities.
Project Budget
Buyers should indicate what their preferred premium is.
Buyers should include the deductible and limit amounts they prefer.
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
