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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.

MoneyGeek Logo IconBest Prof. LiabilityCalifornia
2023

Best Professional Liability Insurance in California

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?

Company
MoneyGeek Score
Monthly Cost Without Employees
Monthly Cost With 20 Employees

Next

96

$39

$337

The Hartford

93

$156

$545

biBERK

92

$165

$755

Nationwide

91

No Data

$349

Thimble

90

$31

$1,824

Hiscox

90

No Data

$349

MoneyGeek’s Pick: NextScore: 96
Next
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’s Pick: NextScore: 99
Next
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’s Pick: NextScore: 96
Next
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’s Pick: NationwideScore: 97
Nationwide
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?

MoneyGeek’s Pick: ThimbleScore: 90
Thimble
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.

State
Average Monthly Cost Without Employees
Average Monthly Cost With 20 Employees

Wyoming

$81

649

Wisconsin

$75

699

West Virginia

$79

721

Washington

$122

896

Virginia

$72

703

Vermont

$79

864

Utah

$76

705

Texas

$78

713

Tennessee

$77

707

South Dakota

$74

694

South Carolina

$72

689

Rhode Island

$74

697

Pennsylvania

$97

796

Oregon

$74

703

Oklahoma

$85

633

Ohio

$77

710

North Dakota

$79

714

North Carolina

$67

674

New York

$80

804

New Mexico

$76

703

New Jersey

$77

750

New Hampshire

$76

703

Nevada

$87

858

Nebraska

$72

687

Montana

$84

739

Missouri

$75

707

Mississippi

$86

747

Minnesota

$75

698

Michigan

$73

692

Massachusetts

$71

719

Maryland

$74

714

Maine

$74

694

Louisiana

$87

724

Kentucky

$77

712

Kansas

$75

696

Iowa

$74

695

Indiana

$75

700

Illinois

$75

705

Idaho

$74

694

Hawaii

$93

723

Georgia

$81

712

Florida

$78

734

Delaware

$76

632

Connecticut

$74

627

Colorado

$76

632

California

$98

693

Arkansas

$95

667

Arizona

$98

586

Alaska

$86

942

Alabama

$89

584

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:

  • shakingHands icon

    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.

  • california icon

    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.

  • female icon

    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.

  • insurance2 icon

    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.

  • signupBonus icon

    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.
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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.

About Melissa Wylie


Melissa Wylie headshot

Melissa Wylie is a Content and SEO Manager at MoneyGeek. Melissa has worked in the financial content space since 2018 and has spent much of that time focused on all things small business.

Prior to joining MoneyGeek, Melissa held SEO positions at Bankrate and LendingTree. Melissa’s work has also appeared on LendingTree-owned websites ValuePenguin and MagnifyMoney.

Melissa began her career at American City Business Journals in 2015 as a reporter for the company’s women-focused publication Bizwomen. Melissa has a Bachelor of Arts in Journalism from the University of North Texas. Melissa relies on her foundation in journalism to craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.

Melissa's other work can be read on LendingTree and Bizwomen.


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