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.
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Updated: October 27, 2025
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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 differ by profession in New Jersey, with some fields like healthcare and law facing stricter mandates than others. Coverage amounts should reflect your business risks and client demands, even without legal requirements. Many high-risk professions maintain at least $1 million per occurrence and $3 million aggregate coverage.
Your coverage decision depends on three factors:
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 walks you on how to get business insurance that fits your New Jersey professional liability needs and budget.
- 1Evaluate Your Risk Exposure
Different businesses face varying liability risks in New Jersey. A consulting firm typically needs lower coverage limits than an architecture practice or medical professional. Review your client contracts and industry standards to determine appropriate coverage amounts.
- 2Find a Local Agent
Look for an agent who knows New Jersey's business landscape and understands how business insurance costs vary by location and industry. Local agents understand regional industry requirements and can recommend coverage that fits your specific business needs and client expectations.
- 3Compare Multiple Insurance 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 carrier may offer different protection than another.
- 4Research Insurance Company Quality
When researching business insurance in New Jersey, look beyond price. Check each insurer's AM Best financial rating and claims handling reputation. Companies with strong ratings and positive reviews from professionals in your industry provide more reliable protection when you need it most.
- 5Explore Bundling Options
Many insurers offer discounts when you combine professional liability with other types of business insurance coverage, like general liability or business owner's policies. Bundling can reduce insurance costs while simplifying policy management and renewal dates.
- 6Maintain Continuous Coverage
Professional liability insurance only covers claims filed while your policy remains active. When switching carriers, ensure your new policy includes prior acts coverage or purchase tail coverage to protect against future claims from past work.
How to Prevent Professional Liability Claims in New Jersey
Professional liability claims in New Jersey typically result from poor communication and vague client expectations rather than genuine professional mistakes. Small misunderstandings can quickly escalate into expensive legal battles. These proven 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 specific business risks and client demands. NEXT leads our rankings, but your industry type, contract requirements and budget constraints should drive your final choice. Assess your coverage needs first, then connect with a local agent to compare options that deliver solid financial protection for your business.
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 most small business insurance choices. We gave affordability the highest weight because finding quality coverage within budget constraints is essential for business survival.
- Customer experience (30%): When facing a claim, responsive service makes all the difference. We analyzed J.D. Power ratings and complaint records from the state's Department of Insurance to measure insurer performance.
- Coverage options (15%): We reviewed policy flexibility and exclusions to ensure they match the diverse needs of local professional service providers.
- Financial strength (5%): AM Best financial ratings confirmed each recommended insurer has solid resources to pay claims when businesses need protection 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.
- Better Business Bureau. "Next Insurance, Inc. | BBB Complaints." Accessed November 14, 2025.
- Better Business Bureau. "The Hartford Insurance Company | BBB Business Profile." Accessed November 14, 2025.