NEXT offers California's best professional liability insurance with affordable rates and solid customer support. The Hartford ranks second, while Simply Business takes third place.
Professional Liability Insurance in California
NEXT earns the highest score of 4.73 out of 5 in our analysis of the best professional liability insurance in California.
Discover cheap professional liability insurance in California below.
Select your industry
Select state
Updated: October 2, 2025
Advertising & Editorial Disclosure
Best Professional Liability Insurance in California: Key Takeaways
NEXT is our top pick for professional liability insurance in California, followed by The Hartford and Simply Business.
Your industry risk, client contracts, potential claim costs and budget determine the best California professional liability insurance for you.
Assess your needs first, then compare quotes from multiple providers to find the best professional liability insurance in Carolina.
Find Insurance for Your Business
Select your industry and state to get a customized quote.
Industry
State
Best Professional Liability Insurance Companies in California
| NEXT Insurance | 4.73 | $81 |
| The Hartford | 4.62 | $80 |
| Simply Business | 4.51 | $85 |
| Nationwide | 4.46 | $91 |
| biBERK | 4.44 | $89 |
| Coverdash | 4.44 | $87 |
| Progressive Commercial | 4.39 | $84 |
| Hiscox | 4.37 | $85 |
| Chubb | 4.27 | $99 |
| Thimble | 4.25 | $84 |
How Did We Determine These Rates and Rankings?
These rates are estimates based on MoneyGeek's proprietary analysis of small businesses with two employees across 79 major industries and should not be considered quotes. Your actual rate will differ based on business-specific factors. Contact insurers directly for accurate pricing tailored to your business needs.
LEARN MORE ABOUT BUSINESS INSURANCE
Professional liability coverage protects your business, but other coverage types work alongside it to create complete financial protection for California small businesses.
Best California Professional Liability Insurance Reviews
Most professionals need professional liability insurance, but not all providers offer the same value. We've broken down what differentiates these top providers and why they made our list for California businesses.
NEXT
Overall Best Provider
MoneyGeek Rating
4.7/ 5
4.7/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average Monthly Premium
$81These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies.Our Survey: Claims Process
3.9/5Our Survey: Recommend to Others
4.8/5
The Hartford
Runner-Up for Best Provider
MoneyGeek Rating
4.6/ 5
4.6/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options
Average Monthly Premium
$80These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies.Our Survey: Claims Process
4.5/5Our Survey: Recommend to Others
4.5/5
Cheapest Professional Liability Insurance Companies in California
The Hartford offers low-cost professional liability insurance in California, costing $80 monthly ($955 annually). NEXT also provides affordable coverage for business owners at $81 per month.
| The Hartford | $80 | $955 |
| NEXT Insurance | $81 | $969 |
| Progressive Commercial | $84 | $1,009 |
| Thimble | $84 | $1,013 |
| Simply Business | $85 | $1,026 |
| Hiscox | $85 | $1,026 |
| Coverdash | $87 | $1,043 |
| biBERK | $89 | $1,063 |
| Nationwide | $91 | $1,095 |
| Chubb | $99 | $1,186 |
How Did We Determine These Rates?
These rates are estimates based on MoneyGeek's proprietary analysis of small businesses with two employees across 79 major industries and should not be considered quotes. Your actual rate will differ based on business-specific factors. Contact insurers directly for accurate pricing tailored to your business needs.
Average Cost of Professional Liability Insurance in California
Professional liability insurance costs $87 monthly ($1,038 annually) in California, which is $9 more than the national average. Home-based businesses pay around $41 per month, while mortgage brokers average $183. Your final rate depends on factors like business location, claims history and coverage limits.
| Accountants | $159 | $1,911 |
| Ad Agency | $111 | $1,333 |
| Auto Repair | $91 | $1,095 |
| Automotive | $83 | $1,000 |
| Bakery | $60 | $723 |
| Barber | $47 | $567 |
| Beauty Salon | $55 | $655 |
| Bounce House | $66 | $793 |
| Candle | $47 | $564 |
| Cannabis | $137 | $1,648 |
| Catering | $88 | $1,056 |
| Cleaning | $62 | $745 |
| Coffee Shop | $68 | $821 |
| Computer Programming | $117 | $1,401 |
| Computer Repair | $70 | $835 |
| Construction | $86 | $1,029 |
| Consulting | $120 | $1,437 |
| Contractor | $71 | $846 |
| Courier | $56 | $676 |
| DJ | $51 | $612 |
| Daycare | $120 | $1,445 |
| Dental | $92 | $1,104 |
| Dog Grooming | $60 | $722 |
| Drone | $120 | $1,441 |
| Ecommerce | $70 | $836 |
| Electrical | $71 | $849 |
| Engineering | $116 | $1,386 |
| Excavation | $77 | $919 |
| Florist | $42 | $505 |
| Food | $124 | $1,487 |
| Food Truck | $66 | $794 |
| Funeral Home | $90 | $1,081 |
| Gardening | $45 | $538 |
| HVAC | $91 | $1,088 |
| Handyman | $60 | $719 |
| Home-based business | $41 | $492 |
| Hospitality | $83 | $992 |
| Janitorial | $56 | $672 |
| Jewelry | $67 | $806 |
| Junk Removal | $74 | $891 |
| Lawn/Landscaping | $57 | $687 |
| Lawyers | $160 | $1,917 |
| Manufacturing | $66 | $797 |
| Marine | $99 | $1,191 |
| Massage | $116 | $1,392 |
| Mortgage Broker | $183 | $2,196 |
| Moving | $93 | $1,119 |
| Nonprofit | $56 | $673 |
| Painting | $70 | $841 |
| Party Rental | $61 | $730 |
| Personal Training | $79 | $950 |
| Pest Control | $105 | $1,261 |
| Pet | $51 | $617 |
| Pharmacy | $65 | $776 |
| Photography | $73 | $870 |
| Physical Therapy | $107 | $1,285 |
| Plumbing | $100 | $1,194 |
| Pressure Washing | $64 | $773 |
| Real Estate | $137 | $1,644 |
| Restaurant | $92 | $1,103 |
| Retail | $60 | $726 |
| Roofing | $108 | $1,296 |
| Security | $112 | $1,346 |
| Snack Bars | $53 | $631 |
| Software | $105 | $1,257 |
| Spa/Wellness | $123 | $1,473 |
| Speech Therapist | $111 | $1,337 |
| Startup | $81 | $975 |
| Tech/IT | $108 | $1,301 |
| Transportation | $105 | $1,258 |
| Travel | $110 | $1,315 |
| Tree Service | $86 | $1,027 |
| Trucking | $125 | $1,504 |
| Tutoring | $66 | $798 |
| Veterinary | $128 | $1,537 |
| Wedding Planning | $86 | $1,028 |
| Welding | $85 | $1,020 |
| Wholesale | $68 | $811 |
| Window Cleaning | $72 | $860 |
How Did We Determine These Rates?
These rates are estimates based on MoneyGeek's proprietary analysis of small businesses with two employees across 79 major industries and should not be considered quotes. Your actual rate will differ based on business-specific factors. Contact insurers directly for accurate pricing tailored to your business needs.
How Much Professional Liability Insurance Do I Need in California?
Professional liability insurance requirements differ by profession in California. Health care providers and attorneys often face mandatory coverage rules, while other fields rely on client contracts and industry standards. Even without legal requirements, your coverage amount should reflect your risk exposure and clients' expectations. Higher-risk professions carry $1 million per occurrence and $3 million aggregate coverage.
Your coverage decision depends on three factors:
Your Industry Risk
Some industries in California carry greater liability exposure than others, directly affecting your coverage needs. The professional liability risk of accountants in Sacramento or real estate agents in smaller Central Valley communities are less than those of Technology consultants in Silicon Valley and architects working on major Los Angeles developments. Your industry's typical claim frequency and severity should guide your coverage amount selection.
Client Requirements
Many clients and contracts in California require proof of professional liability insurance at specific minimum limits before work can begin. Large corporations, government contracts and major organizations throughout the state often mandate coverage levels ranging from $1 million to $5 million or higher. Meeting these requirements is essential for securing valuable business opportunities in California's competitive marketplace.
Potential Claim Costs
Your coverage should reflect the possible financial impact of a professional liability lawsuit in California's legal environment. Small mistakes might result in minor penalties and legal fees, while errors in larger projects could lead to six-figure damages plus substantial attorney costs. Consider the maximum financial exposure your business could face based on your typical project size and client base.
How to Get the Best Professional Liability Insurance in California
You can get business insurance that fits your professional liability needs and budget in California using these steps:
- 1
Evaluate Your Risk Exposure
Different businesses face varying liability risks in California. A tech consultant typically needs lower coverage limits than an architect or health care provider. Review your industry standards and client contract requirements to determine appropriate coverage amounts.
- 2
Find a Knowledgeable Agent
Look for an agent who knows California's business landscape and understands how business insurance costs vary by location and industry. Local expertise helps match your coverage to regional industry demands. An experienced agent can identify risks specific to your profession and location.
- 3
Collect Multiple Detailed Quotes
Request quotes from at least three insurers, comparing cheap business liability insurance options and policy terms like exclusions and deductibles. A $1 million policy from one carrier may offer different protections than another's identical limit.
- 4
Verify Insurer Reliability
When researching business liability insurance in California, look beyond price. Research each company's financial stability using AM Best ratings and claims handling reputation. Strong insurers respond quickly to claims and have experience in your specific industry. Professional reviews from peers provide valuable insights about service quality.
- 5
Explore Bundling Opportunities
Many insurers offer discounts when combining professional liability with other business insurance coverage types, like general liability or business owner's policies. Bundling can reduce overall costs while simplifying policy management. California insurers frequently provide these multi-policy savings to attract comprehensive coverage customers.
- 6
Maintain Uninterrupted Coverage
Professional liability operates on a claims-made basis, covering only incidents reported while your policy remains active. Gaps in coverage leave you vulnerable to unprotected claims. Always secure prior acts coverage or tail coverage (extended reporting periods) when switching carriers.
How to Prevent Professional Liability Claims in California
Most professional liability claims in California result from poor communication and vague client expectations rather than actual mistakes. Even small disputes can cost thousands in legal fees. These proven strategies help businesses prevent conflicts and avoid expensive claims.
Document Everything
Keep written proof of all client interactions, including email confirmations, scope changes and client approvals. This documentation helps prevent disputes by providing a clear record of what was agreed upon. Proper records serve as your best defense if disagreements arise about project details or deliverables.
Use Detailed Contracts with Clear Scope
Create contracts that clearly define responsibilities, timelines and deliverables for every project. Outline what is included and excluded from your services to avoid conflicts over additional work requests. Well-defined agreements protect both you and your clients by establishing clear boundaries from the start.
Communicate Project Changes Immediately
Confirm all client-requested changes in writing before moving forward with any modifications. Document how these changes affect timelines, budgets and final deliverables. This practice prevents misunderstandings and ensures everyone agrees on the revised project scope.
Set Realistic Expectations Upfront
Be transparent about timelines, potential challenges and expected results during initial client discussions. Honest communication about your capabilities helps avoid overpromising and reduces the likelihood of disputes later. Managing expectations from the beginning builds trust and prevents disappointment.
Keep Detailed Project Records
Maintain thorough records of all work performed, decisions made and the reasoning behind your professional choices. This documentation demonstrates your diligence and provides protection if your work is questioned. Detailed records show that you followed proper procedures and made informed decisions throughout the project.
California Professional Liability: Bottom Line
Selecting professional liability insurance in California starts with understanding your business risks and client needs. NEXT earns our top rating, but your industry, contracts and budget should drive your final choice. Assess your specific requirements first, then work with a local agent to compare options that deliver solid financial protection.
California Professional Liability Insurance: FAQ
California professionals ask us these key questions about professional liability insurance coverage. We've compiled the most important answers below.
Is professional liability insurance required in California?
California doesn't legally require professional liability insurance, but client contracts and industry standards often demand coverage. Many professionals carry it anyway for financial protection and credibility when competing for business opportunities.
What does professional liability insurance cost in California?
Professional liability insurance in California ranges from $80 to $99 monthly, depending on your provider. Actual costs vary based on your industry's risk level, claims history, coverage limits and business location within the state.
Which professional liability insurance company is best in California?
NEXT ranks as the top professional liability insurance company in California, scoring 4.73 out of 5 for its affordable rates and excellent customer service. The Hartford follows closely in second place, while Simply Business rounds out the top three with competitive options for California businesses.
How much professional liability coverage do I need in California?
Professional liability coverage needs in California vary based on your industry's risk level, client contract demands and potential lawsuit expenses. High-risk professions like architects and consultants typically need higher coverage limits, while businesses in lower-risk fields may require less protection.
Can I get professional liability insurance online in California?
Yes, you can purchase professional liability insurance online in California. Many insurers offer digital applications that take just minutes to complete, providing instant certificates and immediate coverage confirmation. Online platforms also allow 24/7 policy management, making it far more convenient than traditional paper-based processes with lengthy approval times.
Are professional liability and E&O insurance the same thing in California?
Yes, they're the same coverage. Professional liability and errors and omissions (E&O) insurance both protect you from claims about mistakes in your professional services. Some industries prefer one term over the other, but the coverage works identically regardless of what you call it.
Do I need professional liability insurance if I work from home in California?
Yes, home-based professionals in California need professional liability insurance. Your work location doesn't eliminate the risk of costly mistakes that could financially harm clients. A marketing consultant providing poor strategy advice or a freelance graphic designer missing project deadlines can still face expensive lawsuits. Professional errors create liability regardless of whether you work from home or a traditional office.
What happens if I let my professional liability insurance lapse in California?
Letting your professional liability insurance lapse in California creates serious exposure to financial risk. Claims-made policies only provide coverage for lawsuits filed while your policy remains active, regardless of when you performed the work. Even past services lose protection during coverage gaps. To avoid this dangerous situation, secure prior acts coverage with your new insurer or purchase tail coverage from your previous carrier before your policy expires.
How We Scored the Best Professional Liability Insurance Companies in California
A professional liability lawsuit can destroy a small business in California overnight. We studied insurers throughout the state to identify which companies provide the most reliable financial protection for businesses from startups to established operations.
Our Scoring System
- Affordability (50%): Cost dominates small business insurance choices. We gave affordability the highest weight because finding quality coverage within budget determines whether businesses can afford protection at all.
- Customer experience (30%): Professional liability claims create major stress for business owners. We analyzed service quality through J.D. Power ratings and complaint records from the California Department of Insurance.
- Coverage options (15%): We examined policy flexibility and exclusions specific to professional services operating in the state.
- Financial strength (5%): AM Best financial ratings confirmed each recommended insurer maintains the resources to pay claims reliably.
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
- Alliance Health. "Provider Insurance Requirements." Accessed October 17, 2025.
- Trustpilot. "nextinsurance.com Reviews." Accessed October 17, 2025.