The best overall company for professional liability insurance in California is Next, earning a MoneyGeek score of 96. For LLCs with 20 employees, the average monthly cost is $337; for sole proprietors with no employees, it's $39. Next is also the most affordable option in the state.
Best Professional Liability Insurance in California (2024)
Updated: May 22, 2024
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Best Prof. LiabilityCaliforniaBest Professional Liability Insurance in California
Best Overall - Next
Cheapest - Next
Best for Sole Proprietors - Next
Best for LLCs - Nationwide
Best for Fast Quotes - Thimble
Why Trust MoneyGeek? We collected 1,162 professional liability insurance quotes and analyzed cost information alongside customer satisfaction and financial stability reports to determine the best professional liability insurance companies for small businesses in California.
Coverage costs and company information for professional liability insurance providers in California were updated in 2023.
1,162 Quotes Analyzed
6Companies Compared
50Zip Codes
Overall Best Professional Liability Insurance in California
MoneyGeek has ranked Next as California's top professional liability insurance provider, attributing its ranking to robust affordability scores for 20-employee LLCs and sole proprietors without any staff. The table below details the scores and costs for each company on our list to help you compare insurers.
How was this MoneyGeek score calculated?
MoneyGeek used the following weights to rank the best professional liability insurance in California:
- Affordability for LLCs: 25%
- Affordability for sole proprietors: 25%
- Customer satisfaction: 20%
- Financial stability: 15%
- Coverages offered: 10%
- Online quote process: 5%
MoneyGeek used two software development business profiles to gather professional liability quotes:
- An LLC with five years in business, 20 employees, $5 million in annual revenue and $1,250,000 in annual payroll costs
- A sole proprietorship with five years in business, no employees, $500,000 in annual revenue and no payroll costs
| Next | MoneyGeek Score96 | Monthly Cost Without Employees$39 | Monthly Cost With 20 Employees$337 |
| The Hartford | MoneyGeek Score93 | Monthly Cost Without Employees$156 | Monthly Cost With 20 Employees$545 |
| biBERK | MoneyGeek Score92 | Monthly Cost Without Employees$165 | Monthly Cost With 20 Employees$755 |
| Nationwide | MoneyGeek Score91 | Monthly Cost Without EmployeesNo Data | Monthly Cost With 20 Employees$349 |
| Thimble | MoneyGeek Score90 | Monthly Cost Without Employees$31 | Monthly Cost With 20 Employees$1,824 |
| Hiscox | MoneyGeek Score90 | Monthly Cost Without EmployeesNo Data | Monthly Cost With 20 Employees$349 |
MoneyGeek’s Pick: NextScore: 96
5/5LLC Affordability
5/5Sole Proprietor Affordability
5/5Customer Satisfaction
2/5Financial Stability
3/5Coverages Offered
4/5Online Quote Process
PROS
Excellent affordability for LLCs and sole proprietors
High customer satisfaction rating
Quick and efficient quote process
CONS
Financial stability score could be higher
Limited range of coverages offered
Lower AM Best rating indicates potential risk
Company Highlights
Next provides top-tier professional liability insurance in California, setting a high standard in terms of affordability. LLCs can expect an average monthly premium of $337, while sole proprietors will need to budget around $39 per month. Customers are pleased with the service they receive, as reflected in Next's high customer satisfaction rating. It's also quick and easy to obtain an online quote from Next, typically taking just under two minutes.
However, it's worth noting that Next's financial stability score, based on its A- AM Best rating, is not as high as some competitors. Additionally, while it offers a reasonable range of coverage options, other providers have more extensive offerings.
Cheapest Professional Liability Insurance in California
Next earns the title of the cheapest professional liability insurance in California with average monthly costs of $337 for LLCs with 20 employees and $39 for sole proprietors. Despite Thimble offering slightly lower rates for sole proprietors at $31, its significantly higher LLC rates of $1,824 position it as the second-cheapest insurer overall.
Our affordability ranking is based on a combined assessment of sole proprietor and LLC costs, meaning the cheapest overall may not be the least expensive for both categories.
How was this MoneyGeek score calculated?
MoneyGeek used the following weights to find the cheapest professional liability insurance in California:
- Affordability for LLCs: 50%
- Affordability for sole proprietors: 50%
MoneyGeek’s Pick: NextScore: 99
5/5LLC Affordability
5/5Sole Proprietor Affordability
5/5Customer Satisfaction
2/5Financial Stability
3/5Coverages Offered
4/5Online Quote Process
PROS
Unmatched affordability for both LLCs and sole proprietors
Stellar customer service as reflected in satisfaction rating
Efficient online process for obtaining quotes
CONS
Coverage offerings could be more comprehensive
A- AM Best rating might not instill full confidence
Company Highlights
Next stands out as California's most cost-effective choice for professional liability insurance. It caters to both LLCs and sole proprietors with its exceptional affordability. Policyholders also commend Next for its service, contributing to its high customer satisfaction rating. Obtaining a quote is quick with a process that takes less than two minutes on average. However, some potential customers might be deterred by Next's financial stability score, based on its A- AM Best rating. It's also worth noting that the breadth of coverages offered, while decent, isn't as comprehensive as what some competitors provide.
Best Professional Liability Insurance for Sole Proprietors in California
Next ranks as the top choice for sole proprietors with no employees seeking professional liability insurance in California, earning a MoneyGeek score of 96. This ranking is based on its stellar affordability, with an average monthly cost of $39, and strong customer satisfaction ratings. Following closely behind, Thimble secured the second-best position with a score of 95.
How was this MoneyGeek score calculated?
MoneyGeek used the following weights to find the best professional liability insurance for sole proprietors without employees in California:
- Affordability for sole proprietors: 50%
- Customer satisfaction: 20%
- Financial stability: 15%
- Coverages offered: 10%
- Online quote process: 5%
MoneyGeek’s Pick: NextScore: 96
5/5Sole Proprietor Affordability
5/5Customer Satisfaction
2/5Financial Stability
3/5Coverages Offered
4/5Online Quote Process
PROS
Cost-effective for sole proprietors
High level of customer service satisfaction
Rapid quote generation process
CONS
Lower financial stability may concern some customers
Range of coverage options is somewhat limited
Company Highlights
Next is the top choice for sole proprietors in California seeking professional liability insurance. Offering an excellent balance of affordability and top-tier customer service, the company also provides a swift online quote process, typically taking less than ninety seconds. However, potential clients should note that while Next is affordable, it has a lower financial stability rating due to its A- AM Best score. Another consideration is that while the range of coverages offered is satisfactory, they might not meet all customers' needs.
Best Professional Liability Insurance for LLCs With 20 Employees in California
Nationwide ranks as California's best professional liability insurance provider for LLCs with 20 employees, earning a MoneyGeek score of 97. This score reflects the company's cheap average monthly premium of $349, high customer satisfaction ratings and comprehensive range of insurance coverages. The Hartford matches Nationwide's score of 97, but its higher monthly cost of $545 positions it in second place. Remember that employee count significantly influences the cost of professional liability insurance; businesses with fewer than 20 employees can anticipate lower costs, while those with a larger workforce should expect to pay more.
How was this MoneyGeek score calculated?
MoneyGeek used the following weights to find the best professional liability insurance for LLCs in California:
- Affordability for LLCs: 50%
- Customer satisfaction: 20%
- Financial stability: 15%
- Coverages offered: 10%
- Online quote process: 5%
MoneyGeek’s Pick: NationwideScore: 97
5/5LLC Affordability
4/5Customer Satisfaction
4/5Financial Stability
5/5Coverages Offered
2/5Online Quote Process
PROS
Excellent affordability for LLCs with 20 employees
Comprehensive range of coverage options
Strong financial stability with A+ AM Best rating
CONS
Slightly lower customer satisfaction rating
Slow quote generation process compared to competitors
Company Highlights
Nationwide provides the best professional liability insurance for LLCs with 20 employees in California. Its services offer tremendous value by supplying a broad range of coverage options at affordable rates. The company also boasts a robust financial stability score, backed by an A+ AM Best rating, instilling confidence in its ability to meet claim obligations. Nonetheless, its customer satisfaction scores, while solid, could be better. It's also worth noting that the average time required to receive an online quote is over three minutes, making it less efficient than its competitors.
Best Professional Liability Insurance for Fast Quotes in California
Thimble leads the way in California for fast professional liability insurance quotes with an average online quote time of 52 seconds. Speedy online quote processes can minimize downtime and streamline decision-making for business owners, allowing for quick comparisons between providers and plans.
How was this MoneyGeek score calculated?
The company below has the fastest quote time in California. The company’s MoneyGeek score is based on the the following weights:
- Affordability for LLCs: 25%
- Affordability for sole proprietors: 25%
- Customer satisfaction: 20%
- Financial stability: 15%
- Coverages offered: 10%
- Online quote process: 5%
MoneyGeek’s Pick: ThimbleScore: 90
1/5LLC Affordability
5/5Sole Proprietor Affordability
2/5Customer Satisfaction
3/5Financial Stability
4/5Coverages Offered
5/5Online Quote Process
PROS
Fastest provider for professional liability insurance quotes
Highly affordable for sole proprietors
Wide range of coverage options
CONS
LLCs face high monthly costs
Customer satisfaction could be improved
Financial stability rating not as high as some competitors
Company Highlights
In California, Thimble stands out for its fast professional liability insurance quote process, averaging 52 seconds. It offers affordable rates for sole proprietors with an average monthly cost of $31 while providing a respectable range of coverage options. However, LLCs with 20 employees may find Thimble's rates less attractive, as the average monthly cost soars to $1,824. Additionally, the company's mediocre customer satisfaction score and financial stability rating suggest some areas for improvement.
How Much Is Professional Liability Insurance in California?
In California, the average monthly cost of professional liability insurance is $693 for LLCs with 20 employees and $98 for sole proprietors without employees. These rates are for a policy with limits set at $1 million per occurrence, $1 million aggregate and a $5,000 deductible. Here’s how to understand the policy limits:
- The per occurrence limit is the maximum amount the insurance company will pay for a single claim.
- The aggregate limit is the maximum amount the insurer will pay out over the policy's term.
- The deductible is the amount the policyholder must pay out of pocket before the insurance coverage starts to apply.
A comparison of California's professional liability insurance costs with rates in other states reveals that California is on the higher end of the scale. California ranks in the top 25% for average monthly rates for LLCs with 20 employees. California's costs are around the middle of the pack for sole proprietors without employees compared to other states.
The table below presents a state-by-state comparison of the average monthly cost of professional liability insurance, highlighting the variations in premiums across the country.
| Wyoming | Average Monthly Cost Without Employees$81 | Average Monthly Cost With 20 Employees649 |
| Wisconsin | Average Monthly Cost Without Employees$75 | Average Monthly Cost With 20 Employees699 |
| West Virginia | Average Monthly Cost Without Employees$79 | Average Monthly Cost With 20 Employees721 |
| Washington | Average Monthly Cost Without Employees$122 | Average Monthly Cost With 20 Employees896 |
| Virginia | Average Monthly Cost Without Employees$72 | Average Monthly Cost With 20 Employees703 |
| Vermont | Average Monthly Cost Without Employees$79 | Average Monthly Cost With 20 Employees864 |
| Utah | Average Monthly Cost Without Employees$76 | Average Monthly Cost With 20 Employees705 |
| Texas | Average Monthly Cost Without Employees$78 | Average Monthly Cost With 20 Employees713 |
Factors Impacting Professional Liability Insurance Costs in California
The cost of professional liability insurance in California can change significantly from one business to another. This variation is due to several factors that insurance companies consider when determining premiums. Each factor plays a role in shaping the cost of coverage:
Industry and Type of Services Provided
Different industries carry different levels of risk. For instance, a consulting firm may face a higher risk of professional liability claims than a retail business. The type of services provided can also significantly affect insurance costs. High-risk professions or industries, like law or medicine, typically face higher professional liability insurance premiums.
Location
The geographical location of a business can also impact insurance costs. Some areas may have a higher incidence of claims, leading to higher premiums. The legal environment in some states or cities may also make it easier for complainants to sue businesses, which can drive up insurance costs.
Number of Employees
The more employees a business has, the higher the chance of a mistake or oversight that could lead to a professional liability claim. Companies with more employees usually pay more for professional liability insurance.
Coverage Limits
Higher coverage limits mean the insurance company is potentially taking on more risk, so premiums increase with higher limits. For instance, a business requiring a policy with a $2 million limit will typically pay more than a company seeking a $1 million limit.
Policy Add-ons
Additional coverages, such as general liability insurance or options added to the basic policy, can increase the cost. These could include coverages for specific risks unique to the business or industry, which insurers don't typically offer in a standard professional liability policy.
Who Needs Professional Liability Insurance in California?
Professional liability insurance, often called malpractice insurance when applied to certain high-risk industries, is not typically a legal requirement for most businesses. However, specific fields like healthcare and law may have distinct considerations.
- Legal malpractice insurance: There isn't a mandate for lawyers in California to have malpractice insurance. But a lawyer who knows or should know that they do not have professional liability insurance must inform their client in writing, according to the California Rules of Professional Conduct. This disclosure should occur early on so that clients are aware of their lawyer's insurance status before formal legal representation begins.
- Medical malpractice insurance: Physicians in California are not legally required to carry malpractice insurance. However, certain hospitals or healthcare facilities might require their visiting providers to have such insurance. Medical professionals may also need malpractice insurance to participate in certain healthcare insurance plans.
CONSIDER PROFESSIONAL LIABILITY EVEN IF IT'S NOT REQUIRED
Professional liability insurance, even if not legally required, safeguards against potentially extreme costs associated with lawsuits or claims of negligence, misrepresentation or incorrect advice. For example, if a business consultant provides advice that leads to a client's financial loss without professional liability insurance, the consultant may be personally responsible for legal defense costs and potential settlement amounts, which could have severe economic consequences.
Frequently Asked Questions About Professional Liability Insurance in California
Navigating California's professional liability insurance landscape can be complex, with many factors to consider. The questions below cover the top-rated and most affordable providers, the specifics of what professional liability insurance covers and the typical costs associated with these policies in California.
Which company has the best professional liability insurance in California?
Next takes the top spot for best professional liability insurance in California, earning a MoneyGeek score of 96 out of 100, primarily due to its affordability, customer satisfaction ratings and swift quote process. The best insurance company for you hinges on several factors, including your business size, number of employees and coverage requirements. While Next excels overall, your best fit depends on your business needs.
Which company has the cheapest professional liability insurance in California?
Next stands out as the cheapest option for professional liability insurance in California, with an average monthly cost of $337 for LLCs with 20 employees and $39 for sole proprietors without employees. Keep in mind that the least expensive policy for your specific situation will depend on various factors, such as your business's location and number of employees.
What does professional liability insurance cover and not cover in California?
Professional liability insurance in California typically covers financial losses that may arise due to errors, negligence or malpractice in providing professional services. These policies include costs related to legal defense, settlements and judgments. This type of insurance does not cover intentional wrongdoing or misconduct, criminal acts, bodily injuries or property damage, as general liability insurance usually covers these claims. It also does not cover employee-related issues like harassment and discrimination claims covered under employment practices liability insurance.
How much does professional liability cost in California?
In California, the average monthly cost for professional liability insurance varies based on the business. For example, LLCs with 20 employees can expect to pay approximately $693 per month. Meanwhile, sole proprietors operating without employees typically pay a lower monthly premium, averaging around $98.
About Melissa Wylie
Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.
Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.
sources
- The State Bar of California. "Rule 3-410 Disclosure of Professional Liability Insurance." Accessed June 27, 2023.
- Arthur J. Gallagher & Co. "California Medical Malpractice Insurance." Accessed June 27, 2023.