For the best professional liability insurance in Minnesota, NEXT tops our rankings with affordable rates and strong customer support. The Hartford places second, while Simply Business rounds out the top three.
Professional Liability Insurance in Minnesota
NEXT earns the highest score of 4.69 out of 5 in our analysis of the best professional liability insurance in Minnesota.
Discover cheap professional liability insurance in Minnesota below.
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Updated: September 28, 2025
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Key Takeaways
NEXT is our top pick for professional liability insurance in Minnesota, followed by The Hartford and Simply Business.
Your industry risk, client contracts, potential claim costs and budget determine the best Minnesota professional liability insurance for you.
Assess your needs first, then compare quotes from multiple providers to find the best professional liability insurance in Minnesota.
Best Professional Liability Insurance Companies in Minnesota
| NEXT Insurance | 4.69 | $68 |
| The Hartford | 4.62 | $67 |
| Simply Business | 4.48 | $71 |
| Coverdash | 4.42 | $73 |
| Nationwide | 4.42 | $77 |
| biBERK | 4.41 | $74 |
| Progressive Commercial | 4.36 | $71 |
| Hiscox | 4.33 | $73 |
| Chubb | 4.25 | $83 |
| Thimble | 4.20 | $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 Minnesota business from every risk. Understanding how different coverage types work together creates stronger financial protection for small businesses.
Best Minnesota 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 Minnesota businesses.
NEXT
Overall Best Provider
MoneyGeek Rating
4.7/ 5
4.6/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
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 Options
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 Minnesota
The Hartford offers the most affordable professional liability coverage in Minnesota at $67 monthly ($798 annually). NEXT provides another budget-friendly option for business owners, with premiums starting at $68 per month.
| The Hartford | $67 | $798 |
| NEXT Insurance | $68 | $817 |
| Progressive Commercial | $71 | $847 |
| Simply Business | $71 | $855 |
| Thimble | $72 | $867 |
| Hiscox | $73 | $872 |
| Coverdash | $73 | $873 |
| biBERK | $74 | $892 |
| Nationwide | $77 | $925 |
| Chubb | $83 | $1,000 |
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 Minnesota
Professional liability insurance costs $73 monthly ($875 annually) in Minnesota, which is $5 less than the national average. Home-based businesses pay around $35 per month, while mortgage brokers average $154. Rates also vary based on business location, claims history and coverage limits.
| Accountants | $137 | $1,639 |
| Ad Agency | $92 | $1,101 |
| Auto Repair | $78 | $942 |
| Automotive | $70 | $839 |
| Bakery | $50 | $599 |
| Barber | $40 | $476 |
| Beauty Salon | $46 | $555 |
| Bounce House | $56 | $677 |
| Candle | $39 | $468 |
| Cannabis | $115 | $1,378 |
| Catering | $74 | $893 |
| Cleaning | $51 | $608 |
| Coffee Shop | $57 | $689 |
| Computer Programming | $98 | $1,170 |
| Computer Repair | $58 | $699 |
| Construction | $71 | $850 |
| Consulting | $100 | $1,204 |
| Contractor | $59 | $711 |
| Courier | $48 | $570 |
| DJ | $43 | $515 |
| Daycare | $103 | $1,232 |
| Dental | $77 | $930 |
| Dog Grooming | $51 | $613 |
| Drone | $99 | $1,191 |
| Ecommerce | $58 | $701 |
| Electrical | $59 | $711 |
| Engineering | $97 | $1,166 |
| Excavation | $64 | $771 |
| Florist | $35 | $423 |
| Food | $104 | $1,253 |
| Food Truck | $55 | $661 |
| Funeral Home | $76 | $908 |
| Gardening | $38 | $455 |
| HVAC | $77 | $924 |
| Handyman | $51 | $616 |
| Home-based business | $35 | $422 |
| Hospitality | $69 | $833 |
| Janitorial | $47 | $560 |
| Jewelry | $57 | $688 |
| Junk Removal | $63 | $751 |
| Lawn/Landscaping | $49 | $583 |
| Lawyers | $134 | $1,607 |
| Manufacturing | $57 | $682 |
| Marine | $82 | $988 |
| Massage | $101 | $1,207 |
| Mortgage Broker | $154 | $1,843 |
| Moving | $78 | $935 |
| Nonprofit | $47 | $568 |
| Painting | $60 | $724 |
| Party Rental | $52 | $620 |
| Personal Training | $66 | $796 |
| Pest Control | $89 | $1,068 |
| Pet | $43 | $520 |
| Pharmacy | $53 | $639 |
| Photography | $59 | $707 |
| Physical Therapy | $88 | $1,051 |
| Plumbing | $85 | $1,017 |
| Pressure Washing | $54 | $643 |
| Real Estate | $121 | $1,449 |
| Restaurant | $76 | $917 |
| Retail | $51 | $613 |
| Roofing | $93 | $1,115 |
| Security | $94 | $1,124 |
| Snack Bars | $45 | $546 |
| Software | $90 | $1,078 |
| Spa/Wellness | $105 | $1,260 |
| Speech Therapist | $91 | $1,097 |
| Startup | $67 | $807 |
| Tech/IT | $92 | $1,104 |
| Transportation | $88 | $1,061 |
| Travel | $90 | $1,077 |
| Tree Service | $72 | $859 |
| Trucking | $105 | $1,263 |
| Tutoring | $57 | $686 |
| Veterinary | $109 | $1,312 |
| Wedding Planning | $73 | $876 |
| Welding | $73 | $876 |
| Wholesale | $58 | $696 |
| Window Cleaning | $59 | $707 |
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 Minnesota?
Professional liability insurance requirements differ by profession in Minnesota. Health care providers, attorneys and certain contractors face stricter mandates than other fields. Even without legal requirements, your coverage amount should match your risk exposure and client expectations. Many higher-risk professions carry $1 million per occurrence and $3 million aggregate coverage as a baseline.
Your coverage decision depends on three factors:
Your Industry Risk
Some industries in Minnesota carry greater liability exposure than others, affecting how much coverage you need. Technology consultants and architects in Minneapolis-St. Paul face higher risks due to complex projects and potential for costly errors, while accountants in smaller cities like Rochester or real estate agents typically have lower exposure.
Client Requirements
Many clients and contracts in Minnesota require proof of professional liability insurance at specific limits before they'll work with you. Large corporations headquartered in Minnesota, government contracts, and major organizations often set minimum coverage levels ranging from $1 million to $5 million or more. Meeting these requirements is essential for winning and maintaining business relationships.
Potential Claim Costs
Your coverage should reflect the possible financial impact of a professional liability lawsuit in Minnesota. Small errors might result in damages of a few thousand dollars, while mistakes on larger projects could lead to six-figure settlements plus legal fees that easily exceed $100,000. Consider the scale and value of your typical projects when determining appropriate coverage limits.
How to Get the Best Professional Liability Insurance in Minnesota
Finding the best business insurance becomes straightforward when you follow our step-by-step guide to getting coverage. This process helps you secure professional liability insurance that matches your Minnesota business needs and budget.
- 1
Evaluate Your Business Risks
Determine your coverage needs based on your industry and client contracts. A marketing consultant typically needs lower limits than an engineering firm due to different liability exposures. Check if clients require specific coverage amounts before selecting your policy limits.
- 2
Find a Knowledgeable Local Agent
Look for an agent who knows Minnesota's business landscape and understands how business insurance costs vary by location and industry. Local expertise helps match coverage to your industry's specific risks and state requirements. They can also recommend insurers with strong reputations in your area.
- 3
Request Multiple Detailed Quotes
Request quotes from at least three insurers, comparing affordable business insurance rates and policy terms like exclusions and deductibles. A $1 million policy from one company may offer different protections than another's identical limit.
- 4
Verify Insurer Financial Stability
When researching business insurance in Minnesota, look beyond price. Research each company's AM Best rating and claims-handling reputation before deciding. Strong financial ratings indicate the insurer can pay claims when needed. Read reviews from other professionals in your field to gauge customer satisfaction.
- 5
Explore Bundling Opportunities
Many insurers in the state offer discounts when combining professional liability with general liability or business owner's policies. Bundling often reduces total premiums while simplifying policy management. Ask agents about available package deals for your business type.
- 6
Maintain Uninterrupted Coverage
Professional liability policies only cover claims filed while your policy remains active. When switching insurers, ensure your new policy includes prior acts coverage or purchase tail coverage from your old insurer. Coverage gaps leave you vulnerable to lawsuits from past work.
How to Prevent Professional Liability Claims in Minnesota
Most professional liability claims in Minnesota come from poor communication and vague client expectations rather than actual mistakes. Small disputes quickly rack up thousands in legal fees. These 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 project approvals. This documentation prevents disputes by providing a clear record of what was agreed upon and when changes occurred. Written records protect you when clients claim they never approved additional work or costs.
Use Detailed Contracts With Clear Scope
Create contracts that clearly define your responsibilities, project timelines and specific deliverables. Outline exactly what work is included in your fee and what services require additional payment to avoid conflicts over extra work. Well-defined contracts prevent clients from expecting services beyond your original agreement.
Communicate Project Changes Immediately
Confirm all client-requested changes in writing before starting additional work. Document how these changes affect project timelines, budgets and final deliverables so everyone understands the full impact. This written confirmation prevents clients from disputing additional charges or extended deadlines later.
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 prevents overpromising and reduces the risk of client disappointment. Setting realistic expectations from the start helps avoid disputes when projects face normal complications.
Keep Detailed Project Records
Maintain thorough records of your work process, key decisions and the reasoning behind your professional recommendations. This documentation demonstrates your diligence and expertise if your work is later questioned or challenged. Detailed records show you followed industry standards and made informed decisions throughout the project.
Minnesota Professional Liability: Bottom Line
Professional liability insurance decisions in Minnesota start with understanding your specific business risks and client needs. NEXT leads our rankings, but your industry type, existing contracts and budget constraints should drive your final choice. Assess your coverage needs first, then work with a local agent to compare options that deliver solid financial protection for your business.
Minnesota Professional Liability Insurance: FAQ
Minnesota professionals commonly ask these questions about professional liability insurance. We've compiled clear answers to help you understand your coverage options.
Is professional liability insurance required in Minnesota?
Minnesota does not legally require professional liability insurance. Client contracts and industry standards often demand coverage with specific limits. Most professionals carry this insurance to secure contracts, protect against costly claims and maintain credibility with clients.
What does professional liability insurance cost in Minnesota?
Professional liability insurance in Minnesota ranges from $67 to $83 monthly, based on provider data. Your premium depends on your industry's risk level, claims history, coverage limits and business location within the state.
Which professional liability insurance company is best in Minnesota?
NEXT ranks as the top professional liability insurance company in Minnesota, scoring 4.69 out of 5 for its affordable rates and excellent customer service. The Hartford follows closely at 4.62, while Simply Business rounds out the top three with a solid 4.48 rating for small business coverage.
How much professional liability coverage do I need in Minnesota?
Professional liability coverage amounts in Minnesota 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.
Can I get professional liability insurance online in Minnesota?
Yes, you can purchase professional liability insurance online in Minnesota. 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 the entire process faster and more convenient than traditional methods.
Should I buy general liability and professional liability insurance together in Minnesota?
Most Minnesota businesses benefit from carrying both general liability and professional liability insurance. General liability handles customer injuries and property damage at your business location. Professional liability covers errors in your services that cause financial harm to clients. These policies protect different aspects of your operation, making them complementary rather than competing coverages.
Do I need professional liability insurance if I work from home in Minnesota?
Yes, working from home doesn't eliminate your need for professional liability insurance in Minnesota. Professional errors can still cause financial damage to clients regardless of your office location. A freelance graphic designer who delivers flawed marketing materials or a consultant providing incorrect advice could face expensive lawsuits. Your home office doesn't reduce these risks, making coverage crucial for protecting your business.
What happens if I let my professional liability insurance lapse in Minnesota?
Letting your professional liability insurance lapse in Minnesota creates significant financial risks. Claims-made policies only provide coverage for lawsuits filed while your policy remains active, regardless of when you performed the work. If you're switching insurers, ensure your new policy includes prior acts coverage for past services. Alternatively, purchase tail coverage from your previous insurer to bridge any gaps and maintain continuous protection.
How We Scored the Best Professional Liability Insurance Companies in Minnesota
A professional liability lawsuit can destroy a small business in Minnesota or force it to close permanently. We evaluated insurers statewide to identify which companies provide the strongest financial protection for businesses from startups to established firms.
Our Scoring System
- Affordability (50%): Cost drives most small business insurance choices. We gave affordability the highest weight because finding quality coverage within budget is essential for business survival.
- Customer experience (30%): Professional liability claims create stress for business owners. We analyzed service quality through J.D. Power ratings and complaint records from the state's Department of Insurance.
- Coverage options (15%): We reviewed policy flexibility and exclusions that matter most to local professional services businesses.
- Financial strength (5%): AM Best financial ratings confirmed each recommended insurer has the 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!
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 September 30, 2025.