NEXT is the best professional liability insurance provider for small business owners, offering excellent service quality for affordable premiums. Our research also found The Hartford, Simply Business and Progressive Commercial excellent liability insurance companies to protect your business from claims about errors or negligence in your professional services.
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 top professional liability insurance companies below.
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Updated: August 13, 2025
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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.
Assess your profession's risks, research different insurance companies, compare quotes and consider bundling to find the right policy.
Best Professional Liability Insurance Companies
Provider | Overall Score | Average Monthly Cost |
|---|---|---|
NEXT | 4.73 | $72.24 |
The Hartford | 4.70 | $71.54 |
Simply Business | 4.51 | $76.42 |
Progressive Commercial | 4.44 | $75.31 |
Coverdash | 4.44 | $77.76 |
biBERK | 4.42 | $79.42 |
Nationwide | 4.40 | $82.25 |
Hiscox | 4.39 | $77.29 |
Thimble | 4.37 | $76.19 |
Chubb | 4.20 | $88.53 |
LEARN MORE ABOUT PROFESSIONAL LIABILITY INSURANCE
Finding the best professional liability insurance starts with understanding the basics of coverage, costs and how it differs from other business policies.
Best Professional Liability Insurance Companies by Industry
The Hartford has the best professional liability insurance for small businesses across 44 industries in our study. NEXT and Nationwide follow with top scores for 25 and seven industries, respectively.
| Accountants | The Hartford | 4.78 |
| Ad Agency | The Hartford | 4.78 |
| Auto Repair | Nationwide | 4.76 |
| Automotive | NEXT | 4.82 |
| Bakery | The Hartford | 4.78 |
| Barber | NEXT | 4.82 |
| Beauty Salon | NEXT | 4.73 |
| Bounce House | The Hartford | 4.78 |
| Candle | NEXT | 4.82 |
| Cannabis | The Hartford | 4.78 |
| Catering | NEXT | 4.73 |
| Cleaning | NEXT | 4.61 |
| Coffee Shop | Coverdash | 4.68 |
| Computer Programming | The Hartford | 4.78 |
| Computer Repair | NEXT | 4.82 |
| Construction | Nationwide | 4.63 |
| Consulting | The Hartford | 4.78 |
| Contractor | The Hartford | 4.74 |
| Courier | The Hartford | 4.78 |
| DJ | NEXT | 4.82 |
| Daycare | The Hartford | 4.78 |
| Dental | NEXT | 4.82 |
| Dog Grooming | The Hartford | 4.67 |
| Drone | The Hartford | 4.78 |
| Ecommerce | NEXT | 4.63 |
| Electrical | Simply Business | 4.71 |
| Engineering | NEXT | 4.75 |
| Excavation | The Hartford | 4.77 |
| Florist | NEXT | 4.62 |
| Food | Coverdash | 4.68 |
| Food Truck | NEXT | 4.82 |
| Funeral Home | The Hartford | 4.78 |
| Gardening | NEXT | 4.82 |
| HVAC | The Hartford | 4.52 |
| Handyman | The Hartford | 4.75 |
| Home-based | NEXT | 4.82 |
| Home-based | NEXT | 4.82 |
| Home-based business | The Hartford | 4.78 |
| Hospitality | Nationwide | 4.76 |
| Janitorial | NEXT | 4.66 |
| Jewelry | The Hartford | 4.76 |
| Junk Removal | The Hartford | 4.78 |
| Lawn/Landscaping | Nationwide | 4.67 |
| Lawyers | The Hartford | 4.78 |
| Manufacturing | The Hartford | 4.78 |
| Marine | The Hartford | 4.78 |
| Massage | Nationwide | 4.76 |
| Mortgage Broker | The Hartford | 4.78 |
| Moving | The Hartford | 4.78 |
| Nonprofit | The Hartford | 4.75 |
| Painting | The Hartford | 4.55 |
| Party Rental | The Hartford | 4.78 |
| Personal Training | The Hartford | 4.78 |
| Pest Control | The Hartford | 4.78 |
| Pet | The Hartford | 4.74 |
| Pharmacy | The Hartford | 4.78 |
| Photography | NEXT | 4.82 |
| Physical Therapy | The Hartford | 4.78 |
| Plumbing | The Hartford | 4.78 |
| Pressure Washing | The Hartford | 4.61 |
| Real Estate | NEXT | 4.82 |
| Restaurant | Nationwide | 4.76 |
| Retail | Nationwide | 4.76 |
| Roofing | NEXT | 4.65 |
| Security | NEXT | 4.63 |
| Snack Bars | The Hartford | 4.78 |
| Software | The Hartford | 4.78 |
| Spa/Wellness | Simply Business | 4.71 |
| Speech Therapist | The Hartford | 4.78 |
| Startup | Simply Business | 4.71 |
| Tech/IT | The Hartford | 4.78 |
| Tech/IT | NEXT | 4.78 |
| Transportation | The Hartford | 4.78 |
| Travel | The Hartford | 4.78 |
| Tree Service | NEXT | 4.67 |
| Trucking | The Hartford | 4.78 |
| Tutoring | NEXT | 4.82 |
| Veterinary | biBERK | 4.70 |
| Wedding Planning | NEXT | 4.82 |
| Welding | The Hartford | 4.78 |
| Wholesale | The Hartford | 4.73 |
| Window Cleaning | The Hartford | 4.60 |
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.
Best Overall: NEXT
pros
Ranked first overall in MoneyGeek's study of insurance companies
Topped the list for customer service and digital experience
Ranked second in affordability
Provides online quotes and coverage in 10 minutes
Covers over 1,300 different professions
cons
Claims process ranks lower than other providers
Relatively new, with only nine years in business
COMPANY HIGHLIGHTS
NEXT's digital platform lets you get quotes, manage policies and access certificates instantly. You won't spend time waiting for agents or office hours. Our study puts NEXT's professional liability insurance costs at $72 monthly, making it an affordable option. You'll also get reliable support from a financially stable carrier with an A- rating from AM Best that understands small business needs.
Best for Affordability: The Hartford
pros
Ranked second overall among all providers studied
Has the lowest average rates for professional liability insurance
Excellent claims process ranked first among providers
Has an A+ Superior rating from AM Best
Over 200 years of proven business experience
cons
Unavailable in Alaska and Hawaii
Weak digital experience compared to competitors
COMPANY HIGHLIGHTS
As a small business owner, professional liability insurance costs can make or break your budget. Our study found that The Hartford delivers the most affordable coverage at $72 monthly. That's $6 less than the industry average. With over 200 years of proven financial stability and an A+ Superior AM Best rating, you'll get reliable financial protection.
Best for Construction and Electrical Businesses: Nationwide
pros
- Ranks second in policy management among all insurers included in our study
- Best provider for seven industries
- Has nearly 100 years of business experience since 1926
cons
Provides a weaker digital experience than competitors
Ranked second-to-last in overall affordability
COMPANY HIGHLIGHTS
Construction and electrical professionals face unique errors and omissions risks like design errors, code violations, and faulty workmanship that can result in costly professional liability lawsuits. Nationwide offers competitive monthly rates for electrical contractors at $49, but exceeds the industry average rate for construction businesses at $88.
How to Get the Best Professional Liability Insurance
You can find the best professional liability insurance by carefully evaluating specific risks and comparing providers. These steps help you find coverage without overpaying.
- 1
Assess your profession's risks
Think about what could go wrong in your work and potential claim costs. A business consultant might face claims for giving ineffective advice, while an error in tax preparation can result in a lawsuit for an accountant.
- 2
Determine your coverage needs
How much coverage you need depends on your business size and potential lawsuit costs. For instance, a small consulting firm might need $1 million coverage, while larger practices often require $2 million or more.
- 3
Research different insurance providers
Compare insurers, but look beyond premiums. Research their financial stability, customer service ratings and industry expertise. Some professional liability companies have strong claims-handling reputations and offer specialized coverage for professions like construction or healthcare.
- 4
Gather and compare quotes
Get quotes from at least three insurers to find the best value. Our research shows Chubb's average monthly cost is $89, while The Hartford's is $72. That's a difference of $12 each month.
- 5
Bundle for better rates
Combining professional liability with other types of business insurance, like general liability and workers’ compensation, can reduce insurance costs. Many insurers offer discounts when bundling multiple policies.
- 6
Review policy details carefully
Before signing, review what's covered, excluded and your deductible. For example, if you're an IT professional handling client data, check if your policy includes cyber liability claims.
Getting business insurance is just the first step. Even after you're insured, maintaining good business practices and detailed records is a good way to qualify for lower premiums when you renew.
Best Professional Liability Insurance for Small Business: Bottom Line
Understanding your business's specific risks and your state's requirements is key to getting the right professional liability insurance. NEXT, The Hartford and Simply Business top our rankings for small businesses, but the best choice depends on your industry and coverage needs.
Take the time to compare quotes from multiple providers. Bundling policies saves you money while giving you more comprehensive protection.
Best Professional Liability Insurance: FAQs
We addressed frequently asked questions about the best professional liability insurance for small business owners:
What is professional liability insurance?
Professional liability insurance provides financial protection when clients claim your work caused them financial harm. It's coverage for your professional advice and services, not physical accidents. It covers legal bills, settlements and judgments if you face a lawsuit regarding errors or negligence.
How much does a certificate of liability insurance cost?
Getting a certificate usually costs nothing once you have an active policy. Most insurers provide certificates free as part of your benefits. However, some professional liability companies charge small fees for rush orders or extra copies.
What's the difference between claims-made and occurrence-based professional liability policies?
Claims-made policies cover you when someone files a lawsuit during your policy period, regardless of when the mistake happened. Occurrence-based policies work the opposite way. They cover incidents that happened while you're insured, even if the lawsuit comes later. Most professional liability insurance uses claims-made coverage, so you'll need continuous coverage to avoid gaps.
Should I bundle professional liability with general liability insurance?
Professional liability covers mistakes in your work, while general liability handles physical injuries and property damage at your business. Most service companies need both. Business owner's policies (BOPs) are a popular way to get both coverages together. They work best when you need multiple types of business insurance.
What factors affect professional liability insurance rates?
Your rates depend on industry, coverage amount, deductible, business size and claims history. High-risk professions like doctors and lawyers pay much more than low-risk consultants. Higher coverage limits and lower deductibles increase your premium, while a clean claims record can earn discounts. Your business revenue and location also matter.
Do I need professional liability insurance as a freelancer or independent contractor?
Yes, you'll need this coverage because many clients won't hire you without proof of professional liability insurance, especially for larger projects. Even small mistakes can turn into expensive lawsuits. The coverage protects your personal assets if clients claim your work caused them financial harm.
Which industries need professional liability insurance most?
Healthcare professionals, lawyers, accountants, IT consultants and engineers face the highest lawsuit risks and often have mandatory coverage requirements. Doctors need malpractice insurance because medical mistakes can be life-threatening. Many professional licensing boards and client contracts require proof of coverage before you can work.
What does professional liability insurance not cover?
Professional liability insurance won't cover intentional wrongdoing, criminal acts, bodily injuries, property damage or employment issues. The coverage focuses on financial losses from professional mistakes, not physical harm or deliberate misconduct.
Most policies exclude work done before your policy started and services outside your professional scope. Review your policy's exclusions and consider additional protection for complete business coverage.
How do I file a professional liability insurance claim?
Contact your insurance company immediately when you need to file a claim. Document everything related to the incident, including client emails, work products and timelines. Your insurer will assign a claims adjuster and may provide legal representation. Don't admit fault or discuss the situation with anyone except your insurance company and their assigned lawyers.
How We Chose the Best Professional Liability Insurance Companies
Professional liability insurance covers the costs when clients claim your services caused them harm. Whether you're a consultant, contractor, or professional service provider, the right policy protects your business from expensive lawsuits.
Our Research Approach
We gathered thousands of quotes from 79 industries across four coverage types: professional liability, general liability, workers' compensation and business owner's policies.
Our research used a two-employee business with $300,000 annual revenue and $150,000 payroll for accurate rate comparisons. Coverage included $1 million per claim and $2 million aggregate limits. These standard amounts meet most client contract requirements without breaking small business budgets.
Our Scoring Model
- Affordability (50%): Cost drives most small business decisions. We compared each company's rates across all four insurance types, focusing on businesses like yours that need multiple coverage types.
- Customer Experience (30%): When clients threaten lawsuits, response time and claim approval rates matter. We used J.D. Power ratings, National Association of Insurance Commissioners complaint data, review sites and independent agency ratings to measure how well companies handle the claims process.
- Coverage Options (15%): Professional risks vary dramatically between consultants and contractors. We assessed coverage breadth, policy limits and customization options each company offers for different professional services.
- Financial Strength (5%): Great rates don't help if companies can't pay claims. We evaluated stability using AM Best and Moody's ratings, financial reports and business longevity.
This approach reflects real priorities: affordable coverage from stable companies that handle claims smoothly. Professional liability claims can drag on for months or years, making reliable claims handling important for your business survival. By testing identical business profiles, you can see how rates and services compare for businesses like yours.
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 Places Credit Ratings of Next Insurance US Company Under Review With Positive Implications." Accessed July 14, 2025.
- AM Best. "AM Best Upgrades Issuer Credit Ratings of The Hartford Insurance Group, Inc. and Its Subsidiaries." Accessed July 14, 2025.
- NEXT. "Professional Liability Insurance." Accessed July 14, 2025.