We analyzed 10 top providers for the best professional liability insurance and found that NEXT leads with a 4.73 MoneyGeek score at $72 monthly, which is $6 below the $78 industry average. The Hartford is a close second with a score of 4.70. Simply Business is also a strong professional indemnity option with a slightly higher monthly rate.
Best Professional Liability Insurance
NEXT has the best professional liability insurance for small businesses, with an overall MoneyGeek score of 4.73 out of 5.
Explore the top professional liability insurance companies below.
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Updated: September 11, 2025
Advertising & Editorial Disclosure
Key Takeaways
NEXT, The Hartford and Simply Business offer small businesses the best professional liability insurance.
The best professional liability insurance for you varies because of your industry, state and budget.
Choose coverage based on your business structure and profession, reduce risks through proper documentation and contracts and shop strategically with specialized insurers.
Best Professional Liability Insurance Companies
| NEXT Insurance | 4.73 | $72 |
| The Hartford | 4.70 | $72 |
| Simply Business | 4.51 | $76 |
| Coverdash | 4.44 | $78 |
| Progressive Commercial | 4.44 | $75 |
| biBERK | 4.42 | $79 |
| Nationwide | 4.40 | $82 |
| Hiscox | 4.39 | $77 |
| Thimble | 4.37 | $76 |
| Chubb | 4.20 | $89 |
Disclaimer
The monthly rates above come from our research into professional liability insurers. What you pay depends on your profession, how much coverage you choose, your business location and your claims track record. Our MoneyGeek scores look at pricing, customer service quality, coverage breadth and each company's financial strength.
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Industry
State
Best Professional Liability Insurance Companies by State
NEXT has the best professional liability insurance for small businesses across all 50 states in our study. The Hartford ranks second in 48 states, with Simply Business taking second place in Alaska and Hawaii.
| Alabama | NEXT | 4.73 |
| Alaska | NEXT | 4.70 |
| Arizona | NEXT | 4.73 |
| Arkansas | NEXT | 4.76 |
| California | NEXT | 4.73 |
| Colorado | NEXT | 4.71 |
| Connecticut | NEXT | 4.74 |
| Delaware | NEXT | 4.76 |
| Florida | NEXT | 4.73 |
| Georgia | NEXT | 4.71 |
| Hawaii | NEXT | 4.72 |
| Idaho | NEXT | 4.74 |
| Illinois | NEXT | 4.70 |
| Indiana | NEXT | 4.76 |
| Iowa | NEXT | 4.75 |
| Kansas | NEXT | 4.71 |
| Kentucky | NEXT | 4.70 |
| Louisiana | NEXT | 4.74 |
| Maine | NEXT | 4.74 |
| Maryland | NEXT | 4.71 |
| Massachusetts | NEXT | 4.71 |
| Michigan | NEXT | 4.73 |
| Minnesota | NEXT | 4.69 |
| Mississippi | NEXT | 4.73 |
| Missouri | NEXT | 4.74 |
| Montana | NEXT | 4.73 |
| Nebraska | NEXT | 4.72 |
| Nevada | NEXT | 4.74 |
| New Hampshire | NEXT | 4.74 |
| New Jersey | NEXT | 4.70 |
| New Mexico | NEXT | 4.72 |
| New York | NEXT | 4.76 |
| North Carolina | NEXT | 4.74 |
| North Dakota | NEXT | 4.74 |
| Ohio | NEXT | 4.75 |
| Oklahoma | NEXT | 4.70 |
| Oregon | NEXT | 4.75 |
| Pennsylvania | NEXT | 4.73 |
| Rhode Island | NEXT | 4.71 |
| South Carolina | NEXT | 4.72 |
| South Dakota | NEXT | 4.73 |
| Tennessee | NEXT | 4.70 |
| Texas | NEXT | 4.73 |
| Utah | NEXT | 4.76 |
| Vermont | NEXT | 4.71 |
| Virginia | NEXT | 4.70 |
| Washington | NEXT | 4.69 |
| West Virginia | NEXT | 4.72 |
| Wisconsin | NEXT | 4.69 |
| Wyoming | NEXT | 4.72 |
Best Professional Liability Insurance Review
To help you find the best professional liability insurance for your specific needs, we've reviewed three top providers based on different priorities: overall performance, affordability and industry specialization.
The Hartford
Best for Affordability
MoneyGeek Rating
4.7/ 5
4.8/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options
Average Cost of Professional Liability
$72/monthlyWe analyzed thousands of professional liability quotes from insurers across 79 industriesOur Survey: Claims Process
4.5/5Our Survey: Likely to Recommend to Others
4.5/5
NEXT
Best for Customer Experience
MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average Cost of Professional Liability
$72/monthlyWe analyzed thousands of professional liability quotes from insurers across 79 industriesOur Survey: Claims Process
3.9/5Our Survey: Likely to Recommend to Others
4.8/5
Simply Business
Best for Coverage Options
MoneyGeek Rating
4.5/ 5
4.6/5Affordability
4.2/5Customer Experience
4.9/5Coverage Options
Average Cost of Professional Liability
$76/monthlyWe analyzed thousands of professional liability quotes from insurers across 79 industriesOur Survey: Claims Process
3.7/5Our Survey: Likely to Recommend to Others
4.2/5
How to Get the Best Professional Liability Insurance
Professional liability insurance operates on claims-made coverage, which means your policy must be active when someone files a claim, not when you performed the service. That makes continuous coverage critical to avoid gaps that leave you exposed to claims from past work.
Your needs vary widely by profession and risk level. We'll guide you through coverage limits, policy features and shopping strategies matching your situation.
Recommended Coverage by Business Structure
Your business structure directly affects your liability risk and professional liability insurance needs. Understanding these differences helps you choose appropriate coverage limits and policy features for your situation.
Sole Proprietorship | $1 million to $2 million | Your personal assets are at risk since there's no legal separation between you and your business. Professional mistakes can result in unlimited liability to your home, savings and other personal property. |
Single-Member LLC | $1 million to $2 million | You get liability protection for your personal assets while maintaining tax simplicity. You still need adequate coverage since you could lose liability protection if you don't separate your business and personal finances. |
Multi-Member LLC | $1 million to more than $5 million | All members share protection from personal liability, but you'll need higher limits if serving large clients or working in high-risk industries. Each member's actions can expose the entire LLC to professional liability claims. |
Partnership | $2 million to $5 million | Each partner faces joint and several liability, meaning you're responsible for all partners' professional mistakes. Higher coverage limits help protect against this shared exposure, and professional corporation structures offer additional financial protection. |
Corporation | $1 million to more than $5 million | Your corporate structure provides strong liability protection for shareholders' personal assets. You'll need higher coverage limits if you serve large clients or work in high-risk industries, and the financial protection only works if you maintain proper corporate formalities. |
Professional Corporation (PC) | $2 million to more than $10 million | Required for many licensed professionals in certain states, PCs offer liability protection while meeting professional licensing requirements. Due to the nature of professional services and potential claim severity, coverage limits often need to be higher. |
Professional LLC (PLLC) | $2 million to more than $10 million | Combines LLC flexibility with professional licensing compliance requirements. You maintain personal liability protection while meeting state regulations for licensed professionals, but coverage needs are typically higher than general business LLCs. |
Independent Contractor | $1 million to $2 million | Client contracts typically mandate specific coverage minimums, and misclassification risks can increase your liability exposure. Your errors and omissions (E&O) coverage needs to be portable and meet varying requirements across different client engagements. |
Recommended Coverage by Industry
Your profession determines your specific professional liability risks and coverage requirements. Different industries face unique claim types and require specialized policy features to protect against professional errors and omissions.
$1 million to more than $5 million | Malpractice claims happen when you miss deadlines, give incorrect legal advice, have conflicts of interest or mishandle client funds. Trust account violations and failing to file proper documents can create expensive problems. | You'll want client trust fund protection, coverage for regulatory defense, prior acts protection if you're hiring lawyers from other firms and defense against disciplinary proceedings. | |
Health Care Professionals | $1 million to $3 million per occurrence | Medical malpractice claims come from treatment errors, missed diagnoses, medication mistakes and patient privacy violations. Issues with your scope of practice and inadequate informed consent also lead to lawsuits. | Consider telemedicine coverage, locum tenens protection, license defense coverage and tail insurance (extended reporting periods) if you plan to retire. |
$1 million to $2 million | System failures, software bugs, data loss, security breaches, and failing to deliver what you promised create the biggest headaches. Project delays and poor system performance often lead to unhappy clients and disputes. | Look into technology errors and omissions coverage, system failure protection, intellectual property defense and business interruption coverage for project delays. | |
$2 million to more than $5 million | Design errors that cause structural problems, building code violations, project delays and construction defects create major liability. Environmental issues and failing to meet project specifications can be costly. | You'll need pollution liability coverage, construction defect protection, joint venture coverage and extended discovery periods since problems can appear years later. | |
Financial Advisors | $1 million to $2 million minimum | Investment losses, recommending unsuitable investments, breaching your fiduciary duty and regulatory violations create the most risk. Failing to diversify portfolios and inadequate disclosure can lead to expensive claims. | Get FINRA regulatory coverage, fiduciary liability protection, coverage for securities transaction errors and defense against regulatory proceedings. |
$1 million standard | Bad business advice, failed implementations, confidentiality breaches and project cost overruns trigger most lawsuits. Intellectual property disputes and failing to deliver promised results create ongoing client headaches. | Consider intellectual property defense, third-party coverage, protection for international work and media liability if you publish recommendations or advice. | |
How to Get the Best Deal on Professional Liability Insurance
Getting the best rates for professional liability insurance requires understanding what drives your premiums and positioning your business as a lower risk.
- 1
Understand what affects your premium
Your claims history has the biggest impact on E&O insurance rates, so even one claim can increase your premiums for years. While you're reviewing your policy, make sure your insurer has your industry classification right, since being miscategorized can cost you hundreds annually. Balance coverage limits with deductibles you can afford if you need to file a claim. The good news is that your experience works in your favor. Years in practice and professional certifications often help you qualify for better professional indemnity insurance rates.
- 2
Implement risk reduction strategies
Keep up with continuing education and maintain your professional certifications, as many insurers offer discounts for ongoing development. Beyond credentials, document everything and maintain detailed project files since good records help defend against claims and show insurers you run an organized practice. Most importantly, use clear engagement letters that spell out precisely what you'll do for each client. A well-defined scope prevents misunderstandings that often lead to lawsuits.
- 3
Shop smart for coverage
Get quotes from at least three insurers who work with people in your field. Companies that insure lawyers, consultants, or architects regularly know what claims look like and price accordingly. Skip the lowest quote if it means giving up coverage you actually need. Many insurers also give you a break when you bundle E&O with your other business insurance, so ask about package deals.
- 4
Optimize policy structure and payment
If your cash flow allows, pay annually to avoid the monthly payment fees that add up yearly. Consider working with specialized brokers who know which carriers consistently offer the best rates for your specific profession and can help you navigate policy complexities. Finally, if you have a clean claims history, ask about multi-year agreements since some insurers will guarantee your rates for two to three years, protecting you from surprise increases.
How to Choose the Right Professional Liability Insurer
Picking the right insurer matters as much as getting the right coverage. You want a company that understands your profession and offers policy features that protect your business.
Evaluate the Insurer's Strength and Expertise
Look for an AM Best rating of A- or better, which shows the company has solid finances to pay claims. More importantly, choose insurers who regularly work with your profession since they understand your specific risks and price coverage more fairly than companies that insure everyone.
Consider Customer Service and Digital Tools
Look for insurers with online portals that let you generate professional liability certificates instantly when clients demand proof of coverage. You'll also want responsive support for professional liability questions, like whether a specific project is covered or how to handle a potential claim situation before it escalates.
Look for Essential Policy Features
Make sure the insurer covers you wherever you work, including remote consultations and client visits. Check whether its defense costs count against your policy limits or come separately. When defense costs are "outside limits," you get the full policy amount for settlements plus additional money for legal fees.
Check Coverage for Professional Issues
Find insurers that include regulatory proceedings, since professional licensing boards can investigate you even when you've done nothing wrong. Also, verify that it offers proper retroactive date coverage, which determines how far back your coverage goes for past work. If you're switching insurers, make sure there won't be gaps in your prior acts coverage.
Other Business Insurance to Consider by Industry
Professional liability insurance protects against mistakes in your services, but you'll need additional coverage for other business risks. Here's what else to consider based on your profession.
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Best Professional Liability Insurance for Small Business: Bottom Line
Professional liability protection requires knowing your business structure and industry risks, then getting quotes from specialized insurers like NEXT, The Hartford and Simply Business. Your industry, location and budget will ultimately determine which carrier offers the best combination of coverage and value for your specific needs.
Best Professional Liability Insurance: FAQs
If you're searching for the best professional liability insurance, you likely have questions about costs, coverage, and requirements. We've answered the most frequently asked questions below:
How much does professional liability insurance cost per month?
According to our analysis, most small businesses pay $72 to $78 monthly for professional liability coverage. NEXT and The Hartford both offer rates at $72 monthly, saving you $6 compared to the industry average of $78.
What business structure needs the highest professional liability coverage?
Professional Corporations and Professional LLCs need the most coverage, typically $2 million to more than $10 million. If you're a licensed professional using these structures, you face bigger potential claims and stricter regulatory requirements.
Does professional liability insurance work on a claims-made or occurrence basis?
Professional liability works on a claims-made basis, which means your policy must be active when someone files a claim against you, not when you did the work. That's why keeping continuous coverage matters so much.
Which industries need professional liability insurance most?
Lawyers, doctors, architects, engineers and financial advisors face the most professional liability risks. If you work in these fields, client mistakes can lead to major financial losses that require specialized coverage protection.
What other business insurance do I need besides professional liability?
You'll likely need general liability for office accidents and commercial property to protect your equipment and cyber liability for data breaches. Your specific needs depend on what kind of professional work you do.
Can independent contractors get professional liability insurance?
Absolutely. As an independent contractor, you need $1 million to $2 million in coverage that travels with you between different clients and meets each contract's requirements.
How does professional liability insurance compare to general liability?
To understand how General liability and professional liability insurance differ in terms of what triggers a claim. Professional liability kicks in when you make mistakes giving advice or providing services, while general liability covers physical accidents like someone slipping in your office.
How We Chose the Best Professional Liability Insurance Companies
Finding professional liability insurance that protects your business without breaking your budget means cutting through marketing claims to find real value. We designed our research to show you which companies deliver affordable coverage when professional mistakes trigger expensive lawsuits.
We gathered quotes from major insurers using a consistent business profile: two employees, $300,000 annual revenue, and $150,000 payroll. Every quote included $1 million per claim and $2 million aggregate limits — the standard amounts most client contracts require.
Our scoring reflects what matters most when you're facing a potential claim:
- Affordability (50%) drives most small business insurance decisions. Since you likely need more than professional liability coverage, we compared rates across coverage types.
- Customer Experience (30%) becomes critical when clients threaten lawsuits. Slow claim handling can destroy your business, so we evaluated response times and approval rates using complaint data and industry ratings.
- Coverage Options (15%) and Financial Strength (5%) ensure you get flexible policies from stable companies that can actually pay claims.
This approach shows real comparisons for businesses like yours, focusing on companies that combine reasonable rates with reliable claim handling.
About Mark Fitzpatrick
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.
sources
- AM Best. "AM Best Upgrades Issuer Credit Ratings of The Hartford Insurance Group, Inc. and Its Subsidiaries." Accessed September 10, 2025.
- AM Best. "AM Best Places Credit Ratings of Next Insurance US Company Under Review With Positive Implications." Accessed September 9, 2025.
- Better Business Bureau. "Simply Business | BBB Business Profile." Accessed September 10, 2025.
- Better Business Bureau. "Next Insurance, Inc. | BBB Business Profile." Accessed September 10, 2025.
- Better Business Bureau. "The Hartford Financial Services Group, Inc. | BBB Reviews." Accessed September 10, 2025.
- Trustpilot. "nextinsurance.com Reviews." Accessed September 10, 2025.
- Trustpilot. "The Hartford Reviews." Accessed September 10, 2025.
- Trustpilot. "Simply Business US Reviews." Accessed September 10, 2025.