NEXT offers Michigan's best professional liability insurance, with competitive rates and strong customer support. The Hartford ranks second, while Simply Business takes third place.
Professional Liability Insurance in Michigan
NEXT earns the highest score of 4.73 out of 5 in our analysis of the best professional liability insurance in Michigan.
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Updated: November 3, 2025
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Best Professional Liability Insurance in Michigan: Key Takeaways
NEXT is our top pick for professional liability insurance in Michigan, followed by The Hartford and Simply Business.
Your industry risk, client contracts, potential claim costs and budget determine the best Michigan professional liability insurance for you.
Assess your needs first, then compare quotes from multiple providers to find the best professional liability insurance in Michigan.
Find Insurance for Your Business
Select your industry and state to get a customized quote.
Industry
State
Best Professional Liability Insurance Companies in Michigan
| NEXT Insurance | 4.73 | $68 |
| The Hartford | 4.64 | $67 |
| Simply Business | 4.49 | $73 |
| Coverdash | 4.45 | $73 |
| Nationwide | 4.43 | $78 |
| biBERK | 4.42 | $75 |
| Progressive Commercial | 4.39 | $71 |
| Hiscox | 4.36 | $73 |
| Chubb | 4.26 | $84 |
| Thimble | 4.25 | $72 |
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 alone won't protect your Michigan business from every risk. Understanding how different coverage types work together creates stronger financial protection.
Best Michigan 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 Michigan businesses.
NEXT
Overall Best Provider
MoneyGeek Rating
4.7/ 5
4.7/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
Average Monthly Premium
$68These 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 Points
Average Monthly Premium
$67These 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 Michigan
The Hartford offers the cheapest professional liability insurance in Michigan at $67 monthly ($810 annually). NEXT provides another affordable option for business owners at $68 per month.
| The Hartford | $67 | $810 |
| NEXT Insurance | $68 | $813 |
| Progressive Commercial | $71 | $851 |
| Thimble | $72 | $860 |
| Simply Business | $73 | $872 |
| Coverdash | $73 | $878 |
| Hiscox | $73 | $879 |
| biBERK | $75 | $903 |
| Nationwide | $78 | $933 |
| Chubb | $84 | $1,006 |
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 Michigan
Professional liability insurance costs $73 monthly ($880 annually) in Michigan, which is $5 less than the national average. Home-based businesses pay around $35 per month, while mortgage brokers average $158. Your final rate depends on factors like business location, claims history and coverage limits.
| Accountants | $138 | $1,661 |
| Ad Agency | $92 | $1,104 |
| Auto Repair | $80 | $963 |
| Automotive | $70 | $839 |
| Bakery | $50 | $595 |
| Barber | $40 | $479 |
| Beauty Salon | $47 | $562 |
| Bounce House | $56 | $673 |
| Candle | $40 | $475 |
| Cannabis | $115 | $1,383 |
| Catering | $76 | $908 |
| Cleaning | $52 | $625 |
| Coffee Shop | $58 | $699 |
| Computer Programming | $101 | $1,212 |
| Computer Repair | $59 | $710 |
| Construction | $72 | $859 |
| Consulting | $102 | $1,224 |
| Contractor | $59 | $704 |
| Courier | $46 | $556 |
| DJ | $42 | $509 |
| Daycare | $102 | $1,230 |
| Dental | $79 | $950 |
| Dog Grooming | $52 | $619 |
| Drone | $99 | $1,182 |
| Ecommerce | $57 | $690 |
| Electrical | $61 | $732 |
| Engineering | $99 | $1,188 |
| Excavation | $65 | $779 |
| Florist | $36 | $427 |
| Food | $105 | $1,260 |
| Food Truck | $56 | $677 |
| Funeral Home | $76 | $916 |
| Gardening | $38 | $454 |
| HVAC | $78 | $940 |
| Handyman | $50 | $606 |
| Home-based business | $35 | $424 |
| Hospitality | $70 | $840 |
| Janitorial | $46 | $551 |
| Jewelry | $57 | $683 |
| Junk Removal | $64 | $767 |
| Lawn/Landscaping | $48 | $582 |
| Lawyers | $136 | $1,630 |
| Manufacturing | $56 | $674 |
| Marine | $82 | $985 |
| Massage | $99 | $1,194 |
| Mortgage Broker | $158 | $1,893 |
| Moving | $77 | $921 |
| Nonprofit | $46 | $554 |
| Painting | $60 | $721 |
| Party Rental | $53 | $635 |
| Personal Training | $66 | $797 |
| Pest Control | $89 | $1,071 |
| Pet | $44 | $527 |
| Pharmacy | $55 | $656 |
| Photography | $60 | $719 |
| Physical Therapy | $89 | $1,068 |
| Plumbing | $87 | $1,045 |
| Pressure Washing | $53 | $638 |
| Real Estate | $117 | $1,405 |
| Restaurant | $78 | $932 |
| Retail | $51 | $614 |
| Roofing | $91 | $1,091 |
| Security | $95 | $1,135 |
| Snack Bars | $44 | $534 |
| Software | $88 | $1,057 |
| Spa/Wellness | $104 | $1,246 |
| Speech Therapist | $93 | $1,118 |
| Startup | $69 | $829 |
| Tech/IT | $93 | $1,116 |
| Transportation | $90 | $1,085 |
| Travel | $93 | $1,118 |
| Tree Service | $72 | $861 |
| Trucking | $105 | $1,256 |
| Tutoring | $57 | $678 |
| Veterinary | $112 | $1,348 |
| Wedding Planning | $74 | $889 |
| Welding | $73 | $882 |
| Wholesale | $58 | $692 |
| Window Cleaning | $59 | $710 |
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 Michigan?
Professional liability insurance requirements in Michigan depend on your specific profession. Health care providers, attorneys, and certain contractors face legal mandates, while other fields rely on industry standards and client contracts. Even without state requirements, your coverage amount should reflect your risk exposure and clients' expectations. Higher-risk professions typically carry $1 million per occurrence and $3 million aggregate coverage.
Your coverage decision depends on three factors:
Your Industry Risk
Some industries in Michigan carry greater liability exposure than others, directly affecting your coverage needs. Technology consultants and architects in Detroit or Grand Rapids face higher risk. Professional liability risks for accountants or real estate agents in smaller Michigan communities are lower.
Client Requirements
Many clients and contracts in Michigan require proof of professional liability insurance at specific limits before they'll work with you. Corporations like those in Detroit's automotive sector and government contracts throughout Michigan often set minimum coverage levels of $1 million or more. Meeting these requirements is essential for securing and maintaining business relationships.
Potential Claim Costs
Your coverage should reflect the possible financial impact of a lawsuit in Michigan's legal environment. Small mistakes might result in minor penalties of a few thousand dollars, while errors in larger projects for major Michigan manufacturers or municipalities could lead to six-figure damages plus substantial legal fees. Consider the maximum financial exposure your work could create when selecting coverage limits.
How to Get the Best Professional Liability Insurance in Michigan
The steps to getting business insurance are straightforward. These helps you secure professional liability insurance that matches your Michigan business needs and budget.
- 1Evaluate Your Business Risks
Different businesses face varying liability exposures in Michigan. A consulting firm typically needs lower coverage limits than an engineering company handling major projects. Review your client contracts and industry standards to determine appropriate coverage amounts.
- 2Partner with Local Agents
Look for an agent who knows Massachusetts' business landscape and understands how the cost of insurance for small businesses vary by location and industry. Local expertise helps match your coverage to common industry practices and client expectations across Michigan markets.
- 3Collect Multiple Quotes
Request quotes from at least three insurers to see which one offers the cheapest business insurance. Compare and policy terms like exclusions and deductibles. A $1,000,000 policy varies significantly between carriers based on specific terms.
- 4Verify Insurer Financial Strength
When researching business insurance in Michigan, look beyond price. Research carrier financial strength through AM Best ratings and claims handling reputation. Strong insurers with industry-specific experience provide better protection when you need to file a claim. Professional reviews offer additional insight into carrier performance.
- 5Explore Bundling Options
Many insurers offer discounts when combining professional liability with other small business insurance coverage types, like general liability or business owner's policies. Bundling often reduces overall premiums while simplifying policy management for busy business owners.
- 6Maintain Continuous Protection
Professional liability operates on a claims-made basis, covering only claims filed while your policy remains active. When switching carriers, secure prior acts coverage or purchase tail coverage to protect against future claims from past work.
How to Prevent Professional Liability Claims in Michigan
Most professional liability claims in Michigan 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 prevent conflicts and shield your business from 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 and protects you if disagreements arise later.
Use Detailed Contracts with Clear Scope
Your contracts should define responsibilities, timelines and deliverables in specific terms. Outline what is included and excluded from your services to avoid conflicts over additional work that clients may expect for free.
Communicate Project Changes Immediately
Confirm all client-requested changes in writing before moving forward with the work. Document how these changes affect timelines, budgets and deliverables to prevent misunderstandings about costs and completion dates.
Set Realistic Expectations Upfront
Be transparent about timelines, potential challenges and expected results from the beginning of each project. Being honest about your capabilities helps avoid overpromising and reduces disputes when results don't meet unrealistic client expectations.
Keep Detailed Project Records
Maintain thorough records of your work, decisions made and the reasoning behind them throughout each project. This documentation demonstrates your professional diligence and provides protection if your work methods or results are questioned later.
Michigan Professional Liability: Bottom Line
Professional liability insurance decisions in Michigan depend on understanding your specific business risks and client demands. NEXT leads our rankings, but your industry type, existing contracts and budget determine the best fit. Evaluate your coverage needs first, then partner with a local agent to compare affordable options that deliver solid financial protection for your business.
Michigan Professional Liability Insurance: FAQ
Here are frequently asked questions about professional liability insurance in Michigan.
What does professional liability insurance cost in Michigan?
Professional liability insurance in Michigan costs between $67 and $84 monthly. Your premium depends on your industry's risk level, claims history, coverage limits and business location, with rates varying between providers.
Which professional liability insurance company is best in Michigan?
NEXT ranks as the top professional liability insurance company in Michigan, 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 small business owners.
How much professional liability coverage do I need in Michigan?
Professional liability coverage needs in Michigan vary based on your industry risk level, client contract demands and potential legal costs. High-risk professionals like architects and consultants need higher coverage limits, while businesses in lower-risk fields can often get by with smaller amounts.
Are professional liability and E&O insurance the same thing?
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.
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.