In our study of professional liability insurance providers, Next earned our top score with a nearly perfect 98 out of 100 due to their great customer service ratings and the lowest rates in North Carolina, regardless of business size. However, we do recommend reaching out to biBerk, The Hartford and Thimble as well when you are shopping around.
Professional Liability Insurance North Carolina
Updated: April 24, 2025
Advertising & Editorial Disclosure
Key Takeaways
Next is our top choice for professional liability insurance in North Carolina due to their steller customer service and low rates in the state.
Professional liability insurance in NC costs around $65 per month for sole proprietors and $674 monthly for LLCs.
To get the best deal on professional liability insurance, you should decide coverage beforehand, research costs, compare around online and consult similar businesses.
Best Professional Liability Insurance in North Carolina
| Next | 98.00 | $37 | $228 |
| The Hartford | 97.00 | $89 | $298 |
| biBERK | 95.00 | $92 | $322 |
| Thimble | 81.00 | $40 | $1,833 |
*Rates presented for LLCs refer to a software development company with 20 employees, $5 million is annual revenue and $1,250,000 in annual payroll costs. Sole proprietor rates assume a business with no payroll expenses and $500,000 in annual revenue.
Next: Best Cheap Overall
pros
Lowest rates for both sole proprietors and LLCs
Great customer satisfaction ratings
Quick and efficient quote process
cons
Limited range of other coverages offered
COMPANY HIGHLIGHTS
Next is our top pick for businesses in North Carolina looking for professional liability insurance due to their balance of great rates and customer service. The company sports rates that are 45% lower for sole proprietors and 66% lower for LLCs compared to the state average. The company also has the highest customer ratings out of the companies on our list with a rating of 4.7 out of 5.0 stars from around 1,000 customer reviews.
How Much Is Professional Liability Insurance in North Carolina?
We found that average costs for professional liability insurance are around $778 per year for sole proprietors and $8,047 annually for LLCs. However, depending on the company you select, rates can be anywhere from $448 to $21,997 per year.
| Sole Proprietor | $67 | $778 |
| LLC | $674 | $8,047 |
*Rates presented for LLCs refer to a software development company with 20 employees, $5 million is annual revenue and $1,250,000 in annual payroll costs. Sole proprietor rates assume a business with no payroll expenses and $500,000 in annual revenue.
Factors Affecting Professional Liability Insurance Costs in North Carolina
Factors for professional liability insurance vary to a number of factors which we will break down below:
Industry and Type of Services Provided
Different industries carry different levels of risk. For instance, a consulting firm may face a higher risk of professional liability claims than a retail business. The type of services provided can also significantly affect insurance costs. High-risk professions or industries, like law or medicine, typically face higher professional liability insurance premiums.
Location
The geographical location of a business can also impact insurance costs. Some areas may have a higher incidence of claims, leading to higher premiums. The legal environment in some states or cities may also make it easier for complainants to sue businesses, which can drive up insurance costs.
Number of Employees
The more employees a business has, the higher the chance of a mistake or oversight that could lead to a professional liability claim. Companies with more employees usually pay more for professional liability insurance.
Coverage Limits
Higher coverage limits mean the insurance company is potentially taking on more risk, so premiums increase with higher limits. For instance, a business requiring a policy with a $2 million limit will typically pay more than a company seeking a $1 million limit.
Policy Add-ons
Additional coverages, such as general liability insurance or options added to the basic policy, can increase the cost. These could include coverages for specific risks unique to the business or industry, which insurers don't typically offer in a standard professional liability policy.
North Carolina Professional Liability Insurance Buyers Guide
Navigating the world of business insurance can be difficult, especially for newer small businesses. So below, we've created a comprehensive buying guide for professional liability insurance, defining what it is, who needs it, and how to get the best coverage.
What Is Professional Liability Insurance?
Professional liability insurance, also called malpractice insurance, covers all damages that are caused directly when you are providing services to a customer and associated legal costs. There are type types, including claims made, which covers you for a policy period, and per occurrence which covers you for a specific number of claims.
Who Needs Professional Liability Insurance?
Professional liability insurance is only required when your business works with a client that requests it in their contract, state law mandates it or you need it to get your business license for your industry. Below we've listed common job areas that either are required to get coverage or should consider getting a policy for their services:
- Accountants and tax preparers
- Lawyers
- Architects
- Real estate agents
- Consultants
- Financial advisors
- IT professionals
- Healthcare providers
- Marketing and advertising professionals
- Graphic designers
- Insurance professionals
- Interior designers
- Construction contractors
How To Get The Best Professional Liability Insurance in North Carolina
Below we detail our recommended steps to getting the best professional liability insurance in North Carolina:
- 1
Decide on coverage needs beforehand
First, you should research what requirements your industry has if any. Once you do so, you should consider how your industry, location, and claims history influences your risk as a business for lawsuit for professional liability. From there you can decide on what limits you need and whether you need a policy term or occurrence-based claims.
- 2
Research costs and providers
To give you a frame of reference before comparing quotes, looking into providers, their offerings and average costs for your business make it easy to define what companies are likely to be best for you.
- 3
Consult an agent and similar businesses
To get a second opinion we recommend talking to both independent business insurance agents and similar businesses in your area about what coverage you need. This will give you a balanced perspective from both consumer and provider sides to understand frequency of claims and more personalized to your specific business.
- 4
Compare plenty of quotes through multiple means
Comparing multiple quotes apples to apples in terms of coverage makes sure you can look at pricing side by size to gfet the best deal. We also recommend that you get quotes from multiple places including online provider sites, comparison providers, and agents since pricing may vary between them.
NC Professional Liability Insurance: Bottom Line
The top three best professional liability insurance providers in North Carolina are Next Insurance, biBerk and The Hartford. While these are our recommendations, we recommend comparing around for yourself, deciding on coverage before buying and researching providers for yourself.
Professional Liability Insurance NC: FAQ
Below we answered some frequently asked questions about professional liability insurance in North Carolina:
Which company has the best professional liability insurance in North Carolina?
Next takes the top spot for best professional liability insurance in North Carolina, earning a MoneyGeek score of 98 out of 100, primarily due to it having the best rates, customer satisfaction ratings and fastest quote process. However, we also recommend reaching out to biBerk, The Hartford and Thimble for coverage.
How much does professional liability cost in North Carolina?
In North Carolina, the average monthly cost for professional liability insurance varies based on the business. For example, LLCs with 20 employees can expect to pay approximately $674 per month or $8,074 per year while sole proprietors operating without employees pay an average of $64 monthly or $778 annually.
Who needs professional liability insurance in North Carolina?
State law in North Carolina typically does not require professional liability insurance, but this can differ by industry. While this is the case, professionals in industrial that often have high rates of lawsuit related to negligence or not providing satisfactory service should consider this coverage.
How We Rated The Best Professional Liability Insurance Companies in North Carolina
Methodology
MoneyGeek created a scoring system to compare business insurance companies across six metrics and ranked them based on their scores for North Carolina. We chose these companies based on their broad national coverage and ability to provide an online quote.
Small Business Sample Profiles:
We gathered quotes for two types of software development companies in North Carolina:
- An LLC with five years in business, 20 employees, $5 million in annual revenue and $1,250,000 in annual payroll costs.
- A sole proprietorship with five years in business, no employees, $500,000 in annual revenue and no payroll costs.
MoneyGeek’s Scoring System:
In our unique scoring system, companies can earn up to five points in each of the six categories. We then use these category scores to calculate an overall MoneyGeek score out of 100. We applied the following weightings to score insurers:
- Affordability for LLCs: 55%
- Affordability for sole proprietors: 5%
- Customer satisfaction: 25%
- Financial stability: 5%
- Coverages offered: 5%
- Online quote process: 5%
Each company’s score incorporates:
- Customer satisfaction data from the National Association of Insurance Commissioners (NAIC) customer complaint index (we reviewed annual complaint data from 2020 to 2022, the most recent year available)
- Financial strength ratings from AM Best
- Cost data obtained through online quotes, based on the monthly and yearly cost of a professional liability policy with a $1 million per occurrence limit, $1 million aggregate limit and $5,000 deductible
- How many minutes it took to complete an online application and receive a quote from each company
- The variety of each company’s coverage offerings and the number of core business insurance coverage options available to customers
Quote Gathering Process
Three companies on our list — Next, The Hartford and Thimble — require business owners to bundle professional liability insurance with general liability coverage when obtaining an online quote. Thimble also includes cyber liability insurance in its bundle.
For these three companies, we gathered bundled quotes and quotes for general liability insurance. We then subtracted the cost of general liability insurance from the bundled amount to determine the cost of professional liability coverage on its own.
About Melissa Wylie
Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.
Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.
sources
- The State Bar of California. "Rule 3-410 Disclosure of Professional Liability Insurance." Accessed January 2, 2025.
- Arthur J. Gallagher & Co. "California Medical Malpractice Insurance." Accessed January 2, 2025.