NEXT has the best professional liability insurance in Illinois with affordable rates and strong customer service. The Hartford ranks second, while Simply Business takes third place.
Professional Liability Insurance in Illinois
NEXT earns the highest score of 4.7 out of 5 in our analysis of the best professional liability insurance in Illinois.
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Updated: October 27, 2025
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Best Professional Liability Insurance in Illinois: Key Takeaways
NEXT is our top pick for professional liability insurance in Illinois, followed by The Hartford and Simply Business.
Your industry risk, client contracts, potential claim costs and budget determine the best Illinois professional liability insurance for you.
Assess your needs first, then compare quotes from multiple providers to find the best professional liability insurance in Illinois.
Find Insurance for Your Business
Select your industry and state to get a customized quote.
Industry
State
Best Professional Liability Insurance Companies in Illinois
| NEXT Insurance | 4.70 | $80 |
| The Hartford | 4.59 | $78 |
| Simply Business | 4.49 | $84 |
| Coverdash | 4.44 | $85 |
| Nationwide | 4.43 | $91 |
| biBERK | 4.42 | $87 |
| Progressive Commercial | 4.38 | $82 |
| Hiscox | 4.35 | $85 |
| Chubb | 4.26 | $97 |
| Thimble | 4.20 | $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 works best alongside other coverage types that create comprehensive financial protection for Illinois small businesses.
Best Illinois 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 Illinois businesses.
NEXT
Overall Best Provider
MoneyGeek Rating
4.7/ 5
4.6/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
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
3.9/5Our Survey: Recommend to Others
4.8/5
The Hartford
Runner-Up for Best Provider
MoneyGeek Rating
4.6/ 5
4.5/5Affordability
4.6/5Customer Experience
4.7/5Coverage Points
Average Monthly Premium
$78These 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 Illinois
The Hartford provides the cheapest professional liability insurance in Illinois at $78 monthly ($940 annually). NEXT offers another affordable option for business owners at $80 per month.
| The Hartford | $78 | $940 |
| NEXT Insurance | $80 | $961 |
| Progressive Commercial | $82 | $989 |
| Simply Business | $84 | $1,011 |
| Thimble | $84 | $1,011 |
| Hiscox | $85 | $1,015 |
| Coverdash | $85 | $1,021 |
| biBERK | $87 | $1,047 |
| Nationwide | $91 | $1,086 |
| Chubb | $98 | $1,170 |
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 Illinois
Professional liability insurance costs $85 monthly ($1,025 annually) in Illinois, which is $7 more than the national average. Home-based businesses pay around $41 per month, while mortgage brokers average $183. Rates also vary based on business location, claims history and coverage limits.
| Accountants | $164 | $1,967 |
| Ad Agency | $109 | $1,304 |
| Auto Repair | $89 | $1,063 |
| Automotive | $83 | $993 |
| Bakery | $57 | $688 |
| Barber | $48 | $571 |
| Beauty Salon | $55 | $660 |
| Bounce House | $66 | $797 |
| Candle | $46 | $553 |
| Cannabis | $132 | $1,589 |
| Catering | $87 | $1,039 |
| Cleaning | $61 | $726 |
| Coffee Shop | $67 | $805 |
| Computer Programming | $114 | $1,371 |
| Computer Repair | $69 | $833 |
| Construction | $84 | $1,013 |
| Consulting | $121 | $1,449 |
| Contractor | $71 | $849 |
| Courier | $55 | $662 |
| DJ | $50 | $603 |
| Daycare | $118 | $1,415 |
| Dental | $92 | $1,101 |
| Dog Grooming | $61 | $728 |
| Drone | $118 | $1,421 |
| Ecommerce | $68 | $810 |
| Electrical | $71 | $846 |
| Engineering | $112 | $1,350 |
| Excavation | $75 | $895 |
| Florist | $41 | $493 |
| Food | $121 | $1,454 |
| Food Truck | $66 | $794 |
| Funeral Home | $89 | $1,067 |
| Gardening | $43 | $518 |
| HVAC | $89 | $1,071 |
| Handyman | $59 | $714 |
| Home-based business | $41 | $488 |
| Hospitality | $81 | $967 |
| Janitorial | $54 | $651 |
| Jewelry | $68 | $812 |
| Junk Removal | $74 | $892 |
| Lawn/Landscaping | $56 | $675 |
| Lawyers | $161 | $1,926 |
| Manufacturing | $67 | $801 |
| Marine | $99 | $1,183 |
| Massage | $115 | $1,376 |
| Mortgage Broker | $183 | $2,197 |
| Moving | $91 | $1,086 |
| Nonprofit | $56 | $676 |
| Painting | $71 | $846 |
| Party Rental | $62 | $739 |
| Personal Training | $78 | $937 |
| Pest Control | $104 | $1,250 |
| Pet | $51 | $614 |
| Pharmacy | $63 | $750 |
| Photography | $70 | $840 |
| Physical Therapy | $102 | $1,223 |
| Plumbing | $97 | $1,162 |
| Pressure Washing | $63 | $757 |
| Real Estate | $140 | $1,675 |
| Restaurant | $91 | $1,091 |
| Retail | $59 | $711 |
| Roofing | $107 | $1,283 |
| Security | $107 | $1,285 |
| Snack Bars | $52 | $628 |
| Software | $105 | $1,263 |
| Spa/Wellness | $122 | $1,468 |
| Speech Therapist | $107 | $1,289 |
| Startup | $80 | $965 |
| Tech/IT | $109 | $1,303 |
| Transportation | $106 | $1,271 |
| Travel | $108 | $1,291 |
| Tree Service | $82 | $986 |
| Trucking | $119 | $1,433 |
| Tutoring | $66 | $797 |
| Veterinary | $128 | $1,532 |
| Wedding Planning | $84 | $1,014 |
| Welding | $84 | $1,011 |
| Wholesale | $66 | $794 |
| Window Cleaning | $69 | $826 |
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 Illinois?
Professional liability insurance requirements depend on your specific profession in Illinois. Health care providers, lawyers, and certain contractors face stricter mandates than other fields. Even when the state doesn't require coverage, your risk exposure and client contracts often do. 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 Illinois carry greater liability exposure than others, directly affecting your coverage needs. Technology consultants and architects working in Chicago's bustling business district face higher risks due to complex projects and substantial client investments. Professional liability risks for accountants and real estate agents in smaller Illinois communities typically are lower. Your industry's inherent risk level should guide your baseline coverage amount.
Client Requirements
Many clients and contracts in Illinois require proof of professional liability insurance at specific minimum limits before work can begin. Large corporations headquartered in Chicago, state government contracts, and major organizations throughout Illinois often mandate coverage levels of $1 million or more. Meeting these contractual requirements ensures you can pursue lucrative opportunities across Illinois's diverse business landscape.
Potential Claim Costs
Your coverage should reflect the possible financial impact of professional liability lawsuits in Illinois courts. Small mistakes might result in claims ranging from $10,000 to $50,000, while errors on major projects could generate six-figure damages plus legal defense fees exceeding $100,000. Consider the scale of your typical projects and client relationships when determining appropriate coverage limits.
How to Get the Best Professional Liability Insurance in Illinois
Our process on how to get business insurance helps you find coverage that gives you professional liability protection while being within budget.
- 1Evaluate Your Business Risks
Different businesses face varying liability exposures in Illinois. A regional architecture firm typically needs higher coverage limits than an independent marketing consultant. Review your client contracts and industry standards to determine appropriate coverage amounts.
- 2Find a Knowledgeable Local Agent
Look for an agent who knows the business landscape and understands how business insurance costs vary by location and industry. They can recommend coverage that fits your specific profession and client requirements. This expertise helps you avoid coverage gaps that generic online quotes might miss.
- 3Collect Multiple Detailed Quotes
Request quotes from at least three insurers, to help you find the cheapest business insurance available. Compare policy terms like exclusions and deductibles to make sure you get the best deal. A $1 million policy from one carrier may offer different protections than another.
- 4Verify Insurer Quality Ratings
When researching business insurance in Illinois, look beyond price. Before deciding, check each insurer's AM Best financial strength rating and claims handling reputation. Strong ratings indicate the company can pay claims when needed. Read professional reviews from other business owners in similar industries for additional insights.
- 5Explore Bundling Opportunities
Many insurers offer discounts when you combine professional liability with other business insurance coverage types, like general liability or business owner's policies. These bundled packages often cost less than separate policies while simplifying your insurance management. Ask each agent about available multi-policy discounts.
- 6Maintain Continuous coverage
Professional liability policies only cover claims filed while your policy remains active. Any coverage gap leaves you vulnerable to lawsuits from past work. When switching insurers, confirm your new policy includes prior acts coverage or purchase tail coverage from your previous carrier.
How to Prevent Professional Liability Claims in Illinois
Most professional liability claims in Illinois result from poor communication and vague client expectations rather than genuine mistakes. 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 project approvals. This documentation creates a clear record of agreements and decisions that can prevent disputes before they escalate. Strong documentation practices protect your business by providing evidence of what was actually agreed upon rather than relying on memory.
Use Detailed Contracts With Clear Scope
Create contracts that clearly define your responsibilities, project timelines, and specific deliverables for every engagement. Explicitly outline what services are included and excluded to prevent conflicts over additional work requests. Well-defined contracts serve as your first line of defense against scope creep and unrealistic client expectations.
Communicate Project Changes Immediately
Confirm all client-requested changes in writing before proceeding with any modifications to the original scope. Document how these changes affect project timelines, budgets, and final deliverables to maintain transparency. Immediate written communication prevents misunderstandings and ensures both parties understand the impact of modifications.
Set Realistic Expectations Upfront
Be transparent about project timelines, potential challenges, and expected results during initial client discussions. Honest communication about your capabilities and limitations helps avoid overpromising and reduces the likelihood of client dissatisfaction. Setting realistic expectations from the start builds trust and prevents disputes over unmet promises.
Keep Detailed Project Records
Maintain thorough records of all work performed, decisions made, and the reasoning behind your professional recommendations. This documentation demonstrates your diligence and professional standards if your work is ever questioned or challenged. Detailed project records provide crucial protection by showing you followed industry best practices and made informed decisions.
Illinois Professional Liability: Bottom Line
Selecting professional liability insurance in Illinois requires understanding your business risks and client requirements first. NEXT earns our top rating, but your industry, contracts, and budget should shape your final choice. Start by evaluating your specific needs, then work with a local agent to compare coverage options that deliver solid financial protection for your business.
Illinois Professional Liability Insurance: FAQ
Here are frequently asked questions about professional liability insurance in Illinois.
What does professional liability insurance cost in Illinois?
Professional liability insurance in Illinois ranges from $78 to $98 monthly, depending on your provider. Actual premiums 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 Illinois?
NEXT ranks as the top professional liability insurance provider in Illinois, scoring 4.7 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 Illinois businesses.
How much professional liability coverage do I need in Illinois?
Professional liability coverage amounts in Illinois depend on your industry's risk level, client contract requirements and potential lawsuit costs. High-risk professions like architects and consultants typically need higher coverage limits, while lower-risk businesses can often get by with smaller amounts.
How are professional liability and E&O insurance different?
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.
How We Scored the Best Professional Liability Insurance Companies in Illinois
A professional liability lawsuit can destroy a small business in Illinois. We studied insurers statewide to find which companies provide the best financial protection for businesses from startups to established firms.
Our Scoring System
- Affordability (50%): Cost drives insurance decisions for small businesses. We gave affordability the highest weight because companies need coverage that fits their budgets without sacrificing protection.
- Customer experience (30%): Quality service matters when filing claims. We reviewed J.D. Power scores and complaint records from the state's Department of Insurance to measure insurer responsiveness.
- Coverage options (15%): We examined policy flexibility and exclusions to ensure they serve local professional services effectively.
- Financial strength (5%): AM Best ratings confirmed each recommended insurer has the financial stability to pay claims when businesses need it most.
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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Alliance Health. "Provider Insurance Requirements." Accessed November 14, 2025.