Updated: October 2, 2025

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Key Takeaways

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NEXT, The Hartford and Simply Business ranked as the best professional indemnity insurance providers in our analysis.

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Consultants and advisors need professional indemnity coverage, with limits ranging from $1 million to $2 million for small practices to $5 million to $8 million for large firms handling major contracts.

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Assess your business risk exposure, compare quotes from multiple specialized insurers and look for industry-specific coverage to find the best professional indemnity protection.

Best Professional Indemnity Insurance Companies

Professional indemnity insurance (also called professional liability or errors and omissions insurance) protects your business financially if clients claim you made professional mistakes or gave bad advice.

We analyzed the top providers and found NEXT offers the best combination of quality and value, earning a 4.73 MoneyGeek score with $72 monthly premiums. That's $6 less than the $78 industry average. The Hartford, Simply Business and Coverdash also offer solid coverage options worth considering.

NEXT Insurance4.73$72
The Hartford4.70$72
Simply Business4.51$76
Coverdash4.44$78
Progressive Commercial4.44$75
biBERK4.42$79
Nationwide4.40$82
Hiscox4.39$77
Thimble4.37$76
Chubb4.20$89

Note: These rates are estimates based on MoneyGeek's analysis of small businesses with two employees across 79 major industries. Actual rates vary widely based on your business location, industry risk factors, claims history, coverage limits and individual insurer underwriting criteria. Professional indemnity insurance requirements and availability differ by state and profession. Contact insurers directly for personalized quotes and verify coverage meets your state's professional licensing requirements.

Find Insurance for Your Business

Select your industry and state to get a customized quote.

Industry
State

Best Professional Indemnity Insurance by State

When you're shopping for professional indemnity insurance, location matters for coverage options and pricing. 

We analyzed providers across all 50 states and found that NEXT consistently offers you the best value nationwide. The Hartford ranks as your second-best option in 48 states, while Simply Business takes that spot in Alaska and Hawaii. No matter where your business operates, you'll find strong PII coverage from these top-performing providers.

AlabamaNEXT Insurance4.73
AlaskaNEXT Insurance4.70
ArizonaNEXT Insurance4.73
ArkansasNEXT Insurance4.76
CaliforniaNEXT Insurance4.73
ColoradoNEXT Insurance4.71
ConnecticutNEXT Insurance4.74
DelawareNEXT Insurance4.76
FloridaNEXT Insurance4.73
GeorgiaNEXT Insurance4.71
HawaiiNEXT Insurance4.72
IdahoNEXT Insurance4.74
IllinoisNEXT Insurance4.70
IndianaNEXT Insurance4.76
IowaNEXT Insurance4.75
KansasNEXT Insurance4.71
KentuckyNEXT Insurance4.70
LouisianaNEXT Insurance4.74
MaineNEXT Insurance4.74
MarylandNEXT Insurance4.71
MassachusettsNEXT Insurance4.71
MichiganNEXT Insurance4.73
MinnesotaNEXT Insurance4.69
MississippiNEXT Insurance4.73
MissouriNEXT Insurance4.74
MontanaNEXT Insurance4.73
NebraskaNEXT Insurance4.72
NevadaNEXT Insurance4.74
New HampshireNEXT Insurance4.74
New JerseyNEXT Insurance4.70
New MexicoNEXT Insurance4.72
New YorkNEXT Insurance4.76
North CarolinaNEXT Insurance4.74
North DakotaNEXT Insurance4.74
OhioNEXT Insurance4.75
OklahomaNEXT Insurance4.70
OregonNEXT Insurance4.75
PennsylvaniaNEXT Insurance4.73
Rhode IslandNEXT Insurance4.71
South CarolinaNEXT Insurance4.72
South DakotaNEXT Insurance4.73
TennesseeNEXT Insurance4.70
TexasNEXT Insurance4.73
UtahNEXT Insurance4.76
VermontNEXT Insurance4.71
VirginiaNEXT Insurance4.70
WashingtonNEXT Insurance4.69
West VirginiaNEXT Insurance4.72
WisconsinNEXT Insurance4.69
WyomingNEXT Insurance4.72

Best Professional Indemnity Insurance Company Reviews

Finding the right professional indemnity insurance comes down to knowing which provider matches your needs. We've spotlighted three E&O insurance providers that shine in different areas. 

The Hartford offers solid coverage at competitive rates for budget-conscious businesses. NEXT excels at customer support when you need help navigating claims or coverage questions. Simply Business provides the most comprehensive financial protection options for businesses requiring extensive coverage.

Company Image

NEXT

Best for Customer Service

MoneyGeek Rating
4.7/ 5
4.7/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options

  • Average Monthly Rate

    $72

  • Availability

    50 States

  • Our Survey: Claims Process

    3.9

  • Our Survey: Likely to be Recommended to Others

    4.8
Company Image

The Hartford

Best for Affordability

MoneyGeek Rating
4.7/ 5
4.8/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options

  • Average Monthly Rate

    $72

  • Availability

    48 States

  • Our Survey: Claims Process

    4.5

  • Our Survey: Likely to be Recommended to Others

    4.5
Company Image

Simply Business

Best for Coverage Availability

MoneyGeek Rating
4.5/ 5
4.5/5Affordability
4.2/5Customer Experience
4.9/5Coverage Options

  • Average Monthly Rate

    $76

  • Availability

    50 States

  • Our Survey: Claims Process

    3.7

  • Our Survey: Likely to be Recommended to Others

    4.2

How to Get the Best Professional Indemnity Insurance

As a consultant, advisor or professional service provider, mistakes can cost your clients money and lead to expensive lawsuits. Professional indemnity insurance covers these claims against your business. 

Your E&O coverage needs vary based on your service complexity, usual contract size and industry risks. Our guide walks you through choosing the right coverage, policy and provider for your business.

Coverage Needs by Business Structure

Your business structure affects what's at stake when clients file professional liability claims. If you operate without corporate protection, your home and savings account become targets. Some business structures shield your personal assets better than others, so you'll need different coverage amounts depending on your setup.

Partnership
$2-3 million per occurrence, $4-6 million aggregate
Joint liability creates compounded exposure across all partners. Partnership disputes can affect coverage availability and claims handling.
Each partner's professional decisions impact everyone's liability exposure. Your partnership agreement should address insurance requirements and claim procedures.
Limited Liability Partnership (LLP)
$1-3 million per occurrence, $2-6 million aggregate
Supervising other partners increases your liability risk. Each state has different LLP rules and requirements.
Other partners can't drag you down with their mistakes, but you're still on the hook for your own errors. Check your state's minimum coverage requirements for LLPs.
Corporation/LLC
$1-2 million per occurrence, $2-4 million aggregate
Corporate formalities must be maintained to preserve liability protection. Professional licensing boards can pierce corporate protection for service quality issues.
Your assets are financially protected, but professional licensing boards can still hold you personally accountable for client advice and service quality.
Professional Corporation (PC)
$1-2 million per occurrence, $2-4 million aggregate
Your state's licensing board sets mandatory insurance amounts for PCs. Regulators watch professional corporations more closely than regular businesses.
PCs must follow stricter rules and file more detailed reports. Corporate protection won't save your professional license if things go wrong.
$1 million per occurrence, $2 million aggregate minimum
Everything you own faces direct exposure to professional liability claims. There's no separation between personal and business liability.
Professional indemnity claims can reach your home, savings and retirement accounts. Consider higher limits if you handle high-value client engagements.
Independent Contractors
$1-2 million per occurrence, $2-4 million aggregate
Client contracts often dictate specific coverage requirements. Subcontractor relationships create additional professional liability exposure.
You'll need certificates of insurance for most client engagements. Misclassification as an employee can affect your coverage and create tax liabilities.

Coverage Needs by Professional Industry

If you advise on mergers, one misstep could trigger million-dollar lawsuits against your business. Web developers face different risks when a site crash during a client's product launch costs them thousands in lost sales, and they'll look to you for compensation. You need to understand what kind of claims your specific work attracts. Here's how your coverage needs depend on what you do.

$3-7 million per occurrence, $6-12 million aggregate
Client loses major contracts after following your restructuring advice. Your due diligence work misses critical issues that tank acquisition deals. Cost-cutting strategies you recommend backfire and cause layoffs without savings. Board advisory services lead to governance failures.
Fortune 500 companies want to see hefty coverage numbers before they'll hire you. Confidentiality agreements mean you can't always defend yourself publicly when claims hit. Mergers get messy, and you could end up responsible for advice you gave to companies that no longer exist.
$2-4 million per occurrence, $3-8 million aggregate
Cloud migration you design crashes, taking client operations offline for days. Your API integration breaks during peak sales periods. Security architecture you build gets compromised within months. Digital transformation roadmaps you create miss the budget by millions.
Cloud contracts often push responsibility back to you. Your tech recommendations become part of their systems for years. Old open-source code can cause legal headaches later. You'll want both professional liability and cyber coverage since tech problems cross over.
Financial Advisors  or Planners
$2-4 million per occurrence, $3-6 million aggregate
Your asset allocation strategy loses 40% during market volatility while benchmarks stay flat. Estate planning advice triggers massive tax penalties for heirs. Insurance products you recommend fail to pay out as expected. Your retirement income projections prove wildly optimistic.
Regulators keep adding new rules about what you can recommend to whom. Fee disclosure requirements create more ways to get sued. Crypto investments are still the Wild West for liability. Your policy needs to cover both advice and any products you sell.
$1-3 million per occurrence, $2-6 million aggregate
Your social media campaign accidentally violates trademark law across multiple platforms. Email marketing automation you set up triggers spam violations and hefty fines. Influencer partnerships you arrange involve undisclosed paid promotions. SEO strategies you implement get client sites penalized by search engines.
Platform policy changes can instantly make your strategies non-compliant. Attribution models you use may misrepresent conversion data. Cross-border campaigns trigger international privacy law issues. Performance guarantees in contracts increase your liability exposure.
Environmental Consulting
$3-8 million per occurrence, $5-15 million aggregate
Your site assessment misses contamination that requires $2 million cleanup. Permit applications you file get denied, delaying projects for years. Environmental impact studies you conduct underestimate habitat damage. Carbon offset projects you design fail third-party verification.
Environmental laws change all the time, and new rules can make your old work look inadequate. Contamination problems have a nasty habit of showing up 20 years later. The EPA, state agencies and local authorities might all want to investigate the same mess. Get pollution coverage, since professional indemnity won't cover actual environmental cleanup costs.
Creative Services or Design
$1-2 million per occurrence, $2-3 million aggregate
Your logo design infringes on existing trademarks in key markets. The website you built crashes during the client's product launch. The brand strategy you develop gets the client sued for cultural appropriation. The packaging design you create violates FDA labeling requirements.
You can search for existing trademarks all day, but weird ones still slip through the cracks. Clients think their approval protects you from lawsuits, but it doesn't. International brands run into trademark problems across different countries constantly. Clients who tweak your designs after you deliver them create legal concerns.

Coverage Needs by Practice Size and Contract Value

Your coverage needs depend on how big your practice is and what size contracts you usually handle. A solo consultant landing a $500,000 project needs different financial protection than a 10-person firm handling $50,000 engagements. Here's how to match your coverage to your actual business situation.

Small Practice (Under $250,000 revenue)
Under $50,000 contracts
$1 million per occurrence, $2 million aggregate
Even small projects can trigger expensive professional indemnity claims. Check if your state requires minimum coverage for your license. Look for insurers who specialize in your type of work.
Small Practice (Under $250,000 revenue)
$50,000+ contracts
$2-3 million per occurrence, $3-4 million aggregate
One problematic contract can destroy a small practice financially. Many clients won't sign agreements until they see proof of your coverage. Get your policy in place before you start pursuing larger contracts.
Medium Practice ($250,000-$1 million revenue)
Under $100,000 contracts
$2 million per occurrence, $3-5 million aggregate
Juggling multiple clients means more chances for mistakes and miscommunications. Train your staff on professional standards and document everything. Good systems now prevent expensive problems later.
Medium Practice ($250,000-$1 million revenue)
$100,000-$500,000 contracts
$3-4 million per occurrence, $4-7 million aggregate
Mid-size contracts create the trickiest liability situations. Clients expect sophisticated advice but don't always understand the limitations of what you can deliver. Write detailed engagement letters that spell out exactly what you will and won't do.
Large Practice ($1 million+ revenue)
Under $250,000 contracts
$3-4 million per occurrence, $6-10 million aggregate
More projects mean more opportunities for something to go sideways. You need quality control systems and peer review processes to catch problems before clients do. Consider bringing in a dedicated risk management person.
Large Practice ($1 million+ revenue)
$250,000+ contracts
$5-8 million per occurrence, $8-15 million aggregate
High-dollar professional indemnity exposures demand maximum financial protection. You might need custom policy language for unique situations your firm handles. Some clients will specify exactly how much coverage they want to see in their contracts.

How to Get the Best Professional Indemnity Insurance

Getting the right professional indemnity insurance means finding coverage that protects your business when clients file claims, from an insurer experienced with professional liability cases. Here's your step-by-step guide to securing the financial protection you need at the best price.

  1. 1

    Assess your business risk exposure

    Think about what could go wrong with your professional work and how much it might cost. Management consultants get sued when their strategic advice backfires or merger deals they recommend fall apart. Technology consultants face lawsuits when cloud systems they design fail or security plans don't work. Sole proprietors put everything they own at risk.

  2. 2

    Determine your coverage limits

    Calculate how much financial protection you need based on your client contracts and project values. Small practices generally need $1 million to $3 million per occurrence, while large practices handling major contracts require $5 million to $8 million per occurrence and $8 million to $15 million aggregate. Match your limits to your biggest potential client loss.

  3. 3

    Look for industry-specific coverage

    Find an insurer familiar with your line of work and its common problems. Software developers get sued for coding mistakes, while business consultants face lawsuits over bad advice. Specialized insurers understand your profession's risks and price coverage more accurately than generic business insurance companies.

  4. 4

    Compare quotes from multiple insurers

    Get quotes from at least three providers to compare rates and coverage options. Monthly premiums range from $72 (NEXT Insurance and The Hartford) to $89 (Chubb), showing how much rates vary between providers. Don't just compare prices. Evaluate coverage features, too.

  5. 5

    Review policy terms and exclusions

    Before purchasing, check what your policy covers and what it doesn't. Some policies exclude certain work types or have strict deadlines for reporting potential claims. Pay special attention to retroactive dates, extended reporting periods and specific exclusions relevant to your work.

  6. 6

    Bundle policies for better rates

    Combine professional indemnity with general liability or other business coverage for discounts. Most insurers offer savings when you bundle multiple policies together. Bundling also simplifies your insurance management and claim reporting processes.

  7. 7

    Maintain a clean claims history

    Keep detailed records of your work and client communications to prevent claims. Document project scope, timelines and changes to protect yourself when disputes happen. Good documentation helps defend against false claims and demonstrates professional competence to insurers.

  8. 8

    Reassess your coverage regularly

    Review your policy annually as your business grows and services expand. You need other coverage types or higher limits if you're a freelance designer who adds web development work. Regular reviews ensure you remain financially protected as your business risks change.

Other Business Insurance to Consider by Industry

Professional indemnity insurance protects against advice and service errors, but your business faces other risks that need different coverage types. Client injuries at your office, cyber attacks on your systems and employment disputes with staff all require separate insurance policies. Here's what else you should consider based on your profession.

  • Directors & Officers (D&O): Important when you serve on client boards or in advisory roles. 

  • Employment Practices Liability: Critical if you do HR consulting and workplace transformation advice. 

  • Commercial General Liability: Covers office premises risks and client meeting injuries.
Ad Agency

  • Media Liability: Covers intellectual property disputes and copyright infringement claims from your creative work. 

  • Cyber Liability: Protects client data and digital assets you manage. 

  • Commercial General Liability: Covers office premises risks and client presentation injuries.

  • Intellectual Property Liability: Covers patent infringement and copyright violation claims from your development work. 

  • Product Recall: Covers costs to fix or replace defective software products you create. 

  • Cyber Liability: Essential when you handle client data and system security.

  • Professional Liability for Construction: Specialized coverage beyond standard professional indemnity for building design and structural work. 

  • Commercial General Liability: Covers site visit injuries and office premises risks. 

  • Commercial Auto: Protects vehicles you use for site visits and project meetings.

  • Technology Errors & Omissions Enhancement: Covers coding errors and system integration failures beyond basic professional indemnity. 

  • Intellectual Property Liability: Protects against copyright and patent infringement claims from your development work. 

  • Business Income: Covers lost revenue during development delays or system failures.

  • Fidelity Bond: Often required by lenders and regulatory agencies for loan origination and handling client funds. 

  • Regulatory Defense: Covers costs of regulatory investigations and license defense proceedings. 

  • Commercial General Liability: Covers office premises risks and client meeting injuries.

  • Trust Account Protection: Covers client funds you hold in trust accounts and fiduciary responsibilities beyond standard professional indemnity. 

  • Employment Practices Liability: Important for law firm employee relationships and discrimination claims. 

  • Cyber Liability: Essential for protecting client confidentiality and legal document security.

  • Fidelity Bond: Protects against employee theft of client funds and fraudulent activities during tax preparation and financial services. 

  • Business Income: Covers lost revenue during tax season disruptions or system failures. 

  • Workers' Compensation: Covers employee injuries from repetitive strain and office-related accidents.

  • Directors & Officers (D&O): Essential for startup leadership liability and investor relations as your company grows. 

  • Employment Practices Liability: Important for rapidly growing teams and evolving hiring practices. 

  • Cyber Liability: Critical for tech startups handling sensitive data and intellectual property.

Best Professional Indemnity Insurance: Bottom Line

If you're a consultant or advisor, you need professional indemnity coverage to protect against client lawsuits from professional mistakes. NEXT, The Hartford and Simply Business offer you the best combination of service quality and competitive rates. Your coverage should range from $1 million to $2 million for small practices up to $5 million to $8 million for larger firms. Compare quotes from specialized insurers and assess your business risks for the right financial protection.

Best Small Business Professional Indemnity Insurance: FAQ

MoneyGeek's experts answered the most frequently asked questions about finding the best professional indemnity insurance for your business:

What does professional indemnity insurance cover?

How much does professional indemnity insurance cost for small businesses?

Do I need professional indemnity insurance as a small business?

What's the difference between professional indemnity and general liability insurance?

Can I get professional indemnity insurance online?

How We Scored the Best Professional Indemnity Insurance Companies

Professional liability claims cost businesses hundreds of thousands in legal fees, even when you win. We built our analysis to help you find affordable coverage that protects during claims.

Our Research Method

We surveyed thousands of professional indemnity quotes from 79 industries using a two-employee business with $300,000 annual revenue. Coverage included $1 million per claim and $2 million aggregate limits.

Our Scoring Categories

  • Affordability (50%): We compared each company's rates across multiple coverage types, focusing on businesses that need comprehensive financial protection.
  • Customer Experience (30%): Professional liability claims drag on for months. We measured claims handling using J.D. Power ratings, complaint data and agency scores.
  • Coverage Options (15%): We evaluated coverage breadth, policy limits and customization options for different professional services.
  • Financial Strength (5%): We assessed stability using AM Best ratings, financial reports and business longevity.

Testing identical business profiles shows how rates and services compare for businesses like yours.

About Mark Fitzpatrick

Mark Fitzpatrick headshot

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.

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