NEXT offers the best professional liability insurance in New Jersey, with affordable rates and strong customer support. The Hartford ranks second overall, while Simply Business takes third place.
Professional Liability Insurance in New Jersey
NEXT tops our analysis with 4.7 out of 5 for the best professional liability insurance in New Jersey, leading coverage for business owners.
Get matched to the best professional liability insurance provider for your business in New Jersey.
Select your industry
Select state
Updated: December 27, 2025
Advertising & Editorial Disclosure
Best Professional Liability Insurance in New Jersey: Key Takeaways
NEXT is our top pick for professional liability insurance in New Jersey, followed by The Hartford and Simply Business.
Your industry risk, client contracts, potential claim costs and budget determine the best New Jersey professional liability insurance for you.
Assess your needs first, then compare quotes from multiple providers to find the best professional liability insurance in New Jersey.
Find Insurance for Your Business
Select your industry and state to get a customized quote.
Industry
State
Best Professional Liability Insurance Companies in New Jersey
| NEXT Insurance | 4.70 | $82 |
| The Hartford | 4.62 | $81 |
| Simply Business | 4.49 | $86 |
| Nationwide | 4.42 | $93 |
| Coverdash | 4.41 | $88 |
| biBERK | 4.41 | $90 |
| Progressive Commercial | 4.36 | $86 |
| Hiscox | 4.34 | $87 |
| Chubb | 4.25 | $100 |
| Thimble | 4.20 | $86 |
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 is just one piece of your business insurance puzzle in New Jersey. These coverage types work together to create comprehensive financial protection for small businesses.
Best New Jersey 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 New Jersey businesses.
NEXT
Overall Best Provider
MoneyGeek Rating
4.7/ 5
4.6/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
Average Monthly Premium
$82These 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
$81These 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 New Jersey
The Hartford offers the cheapest professional liability insurance in New Jersey at $81 monthly ($968 annually). NEXT provides another affordable option for business owners at $82 per month.
| The Hartford | $81 | $968 |
| NEXT Insurance | $82 | $978 |
| Thimble | $86 | $1,027 |
| Progressive Commercial | $86 | $1,030 |
| Simply Business | $86 | $1,033 |
| Hiscox | $87 | $1,045 |
| Coverdash | $88 | $1,061 |
| biBERK | $90 | $1,079 |
| Nationwide | $93 | $1,118 |
| Chubb | $100 | $1,203 |
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 New Jersey
Professional liability insurance costs $88 monthly ($1,054 annually) in New Jersey, which is $10 more than the national average. Home-based businesses pay around $43 per month, while mortgage brokers average $189. Rates also vary based on business location, claims history and coverage limits.
| Accountants | $165 | $1,975 |
| Ad Agency | $111 | $1,334 |
| Auto Repair | $93 | $1,121 |
| Automotive | $86 | $1,030 |
| Bakery | $60 | $715 |
| Barber | $49 | $583 |
| Beauty Salon | $55 | $659 |
| Bounce House | $68 | $817 |
| Candle | $47 | $562 |
| Cannabis | $134 | $1,607 |
| Catering | $90 | $1,085 |
| Cleaning | $62 | $749 |
| Coffee Shop | $70 | $845 |
| Computer Programming | $118 | $1,416 |
| Computer Repair | $72 | $860 |
| Construction | $88 | $1,061 |
| Consulting | $121 | $1,450 |
| Contractor | $71 | $852 |
| Courier | $57 | $684 |
| DJ | $51 | $615 |
| Daycare | $122 | $1,463 |
| Dental | $95 | $1,140 |
| Dog Grooming | $61 | $734 |
| Drone | $120 | $1,438 |
| Ecommerce | $70 | $843 |
| Electrical | $72 | $865 |
| Engineering | $117 | $1,404 |
| Excavation | $77 | $930 |
| Florist | $43 | $517 |
| Food | $127 | $1,528 |
| Food Truck | $67 | $805 |
| Funeral Home | $92 | $1,109 |
| Gardening | $45 | $539 |
| HVAC | $91 | $1,087 |
| Handyman | $62 | $739 |
| Home-based business | $43 | $511 |
| Hospitality | $84 | $1,005 |
| Janitorial | $56 | $678 |
| Jewelry | $69 | $830 |
| Junk Removal | $76 | $913 |
| Lawn/Landscaping | $58 | $694 |
| Lawyers | $163 | $1,957 |
| Manufacturing | $66 | $793 |
| Marine | $97 | $1,164 |
| Massage | $121 | $1,456 |
| Mortgage Broker | $189 | $2,262 |
| Moving | $91 | $1,096 |
| Nonprofit | $58 | $693 |
| Painting | $73 | $875 |
| Party Rental | $62 | $747 |
| Personal Training | $80 | $958 |
| Pest Control | $109 | $1,303 |
| Pet | $53 | $634 |
| Pharmacy | $64 | $766 |
| Photography | $73 | $881 |
| Physical Therapy | $108 | $1,293 |
| Plumbing | $101 | $1,217 |
| Pressure Washing | $65 | $777 |
| Real Estate | $141 | $1,688 |
| Restaurant | $91 | $1,089 |
| Retail | $63 | $751 |
| Roofing | $109 | $1,309 |
| Security | $113 | $1,357 |
| Snack Bars | $54 | $650 |
| Software | $109 | $1,306 |
| Spa/Wellness | $129 | $1,544 |
| Speech Therapist | $110 | $1,316 |
| Startup | $82 | $983 |
| Tech/IT | $112 | $1,342 |
| Transportation | $108 | $1,290 |
| Travel | $110 | $1,315 |
| Tree Service | $85 | $1,018 |
| Trucking | $125 | $1,495 |
| Tutoring | $68 | $821 |
| Veterinary | $131 | $1,569 |
| Wedding Planning | $87 | $1,047 |
| Welding | $87 | $1,048 |
| Wholesale | $70 | $842 |
| Window Cleaning | $70 | $839 |
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 New Jersey?
Professional liability insurance requirements vary by profession in New Jersey. Healthcare and law face stricter mandates than other fields. Your coverage amounts need to match your business risks and client demands, regardless of legal requirements.
High-risk professions maintain at least $1 million per occurrence and $3 million aggregate coverage. Three factors determine your coverage needs:
Your Industry Risk
Some industries in New Jersey carry greater liability exposure than others, affecting how much coverage you need. Technology consultants and architects working in Newark and Jersey City face higher risks due to complex projects and potential for costly errors. Professional liability risks for accountants and real estate agents in smaller towns like Princeton or Morristown typically are lower.
Client Requirements
Many clients and contracts in New Jersey require proof of professional liability insurance at specific minimum limits before work can begin. Large corporations, government contracts and major organizations throughout the state often mandate coverage levels of $1 million or more as a condition of doing business. Meeting these client requirements ensures you can compete for lucrative contracts and maintain professional relationships.
Potential Claim Costs
Your coverage should reflect the possible financial impact of a professional liability lawsuit in New Jersey's legal environment. Small mistakes might result in minor penalties of a few thousand dollars, while errors on major projects could lead to six-figure damages plus substantial legal fees that can easily exceed $100,000. Consider the largest project you handle and the potential financial consequences if something goes wrong.
How to Get the Best Professional Liability Insurance in New Jersey
Our guide explains how to get business insurance that fits your New Jersey professional liability needs and budget.
- 1Evaluate Your Risk Exposure
Liability risks vary across New Jersey businesses. A consulting firm may need lower coverage limits than an architecture practice or a medical professional. Review your client contracts and industry standards to decide how much protection your business requires.
- 2Find a Local Agent
Work with an agent who understands New Jersey’s business environment and how business insurance costs shift by industry and location. Local agents know regional requirements and can recommend coverage that matches your business needs and client expectations.
- 3Compare Multiple Insurance Quotes
Request quotes from at least three insurers and compare affordable business insurance rates along with policy terms such as exclusions and deductibles. A $1 million limit can offer very different protection from one carrier to another.
- 4Research Insurance Company Quality
When researching business insurance in New Jersey, consider more than just price. Review each company’s AM Best financial rating and claims handling reputation. Insurers with strong ratings and positive industry reviews tend to provide more dependable protection.
- 5Explore Bundling Options
Many insurers offer discounts when you combine professional liability with other business insurance coverage, including general liability or a business owner's policy. Bundling can lower overall costs and simplify policy management.
- 6Maintain Continuous Coverage
Professional liability insurance applies only to claims filed while your policy is active. When changing insurers, make sure your new policy includes prior acts coverage or consider purchasing tail coverage to protect against claims that may arise from earlier work.
How to Prevent Professional Liability Claims in New Jersey
Professional liability claims in New Jersey often stem from poor communication and vague client expectations rather than actual professional mistakes. Small misunderstandings escalate into expensive legal battles. These strategies help New Jersey businesses prevent disputes and avoid costly claims.
Document Everything
Keep written records of all client communications, including email confirmations, project approvals and scope changes. This documentation creates a clear trail of what was agreed upon and helps prevent disputes over project details. Written proof protects your business when clients question decisions or claim work wasn't authorized.
Use Detailed Contracts With Clear Scope
Draft contracts that specifically define your responsibilities, project timelines and expected deliverables. Clearly outline what services are included in your fee and what constitutes additional work requiring separate payment. This approach prevents conflicts when clients request work beyond the original agreement.
Communicate Project Changes Immediately
Confirm all client-requested modifications in writing before proceeding with the work. Document how these changes will affect project timelines, budgets and final deliverables. This practice ensures both parties understand the implications of adjustments and prevents surprise billing disputes.
Set Realistic Expectations Upfront
Be transparent with clients about project timelines, potential challenges and expected results from the start. Honest communication about your capabilities and limitations prevents overpromising and reduces the likelihood of client dissatisfaction. Clear expectations create stronger professional relationships and fewer disputes.
Keep Detailed Project Records
Maintain comprehensive records of your work process, key decisions and the reasoning behind your professional choices. These detailed files demonstrate your diligence and professional standards if your work is ever questioned. Thorough documentation can provide crucial protection in liability claims by showing you followed proper procedures.
New Jersey Professional Liability: Bottom Line
Selecting professional liability coverage in New Jersey requires understanding your business risks and client demands. NEXT leads our rankings, but your industry, contract requirements and budget should drive your choice. Assess your coverage needs, then connect with a local agent to compare options that protect your business financially.
New Jersey Professional Liability Insurance: FAQ
Here are frequently asked questions about professional liability insurance in New Jersey.
What does professional liability insurance cost in New Jersey?
Professional liability insurance in New Jersey costs between $81 and $100 monthly, depending on your provider. Your actual 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 New Jersey?
NEXT leads professional liability insurance in New Jersey with a 4.70 out of 5 rating for its affordable coverage and excellent customer service. The Hartford ranks second at 4.62, while Simply Business comes third at 4.49, both offering solid options for New Jersey professionals.
How much professional liability coverage do I need in New Jersey?
Professional liability coverage amounts in New Jersey depend on your industry's risk level, client contract requirements and potential lawsuit costs. Higher-risk professions like architects and consultants need larger coverage limits, while businesses with lower exposure may require less protection.
How are professional liability and E&O insurance different?
Professional liability and errors and omissions (E&O) insurance are two names for the same coverage. Both protect you from claims about mistakes in your services. Some industries prefer one term, but they work the same way.
How We Scored the Best Professional Liability Insurance Companies in New Jersey
A professional liability lawsuit can destroy a small business in New Jersey overnight. We studied insurers throughout the state to find which companies provide the best financial protection for businesses at every stage, from new startups to well-established firms.
Our Scoring System
- Affordability (50%): Price drives small business insurance decisions. Affordability received the highest weight because budget constraints determine whether businesses can maintain necessary coverage.
- Customer experience (30%): Responsive claims service matters most when businesses face losses. J.D. Power ratings and state Department of Insurance complaint records reveal how insurers actually perform under pressure.
- Coverage options (15%): Policy flexibility and coverage exclusions must match professional service providers' specific risks. Our review evaluated whether insurers offer adequate protection for local businesses.
- Financial strength (5%): AM Best ratings confirm insurers maintain financial resources to pay claims promptly.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in 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 December 29, 2025.
- Better Business Bureau. "Next Insurance, Inc. | BBB Complaints." Accessed December 29, 2025.
- Better Business Bureau. "The Hartford Insurance Company | BBB Business Profile." Accessed December 29, 2025.