The best professional liability insurance in Texas is from Next, which stands out for its affordability and customer satisfaction. With monthly costs of $233 for LLCs with 20 employees and $42 for sole proprietors, Next offers the best overall value and also ranks as the cheapest insurer in the state.
Best Professional Liability Insurance in Texas (2024)
Next ranks as the best insurer for professional liability insurance in Texas with a MoneyGeek score of 96. This coverage protects professionals against claims of negligence, malpractice or misrepresentation.
Melissa Wylie
Content and SEO Manager
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.
Jonathan Ramos
Content Editor
Jonathan Ramos is an editor committed to producing user-friendly and accessible financial content, particularly for those in younger generations. Previously, he worked as a fact-checker at The Daily Emerald, the University of Oregon newspaper. Jonathan's interest in the personal finance space stems from his desire to make a positive impact on the lives of others — he helps people make informed financial decisions by using his editing skills to make complex information more digestible.
Melissa Wylie
Content and SEO Manager
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.
Jonathan Ramos
Content Editor
Jonathan Ramos is an editor committed to producing user-friendly and accessible financial content, particularly for those in younger generations. Previously, he worked as a fact-checker at The Daily Emerald, the University of Oregon newspaper. Jonathan's interest in the personal finance space stems from his desire to make a positive impact on the lives of others — he helps people make informed financial decisions by using his editing skills to make complex information more digestible.
Updated: May 22, 2024
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Best Professional Liability Insurance in Texas
Why Trust MoneyGeek? We collected 1,162 professional liability insurance quotes and analyzed cost information alongside customer satisfaction and financial stability reports to determine the best professional liability insurance companies for small businesses in Texas.
Coverage costs and company information for professional liability insurance providers in Texas were updated in 2023.
Overall Best Professional Liability Insurance in Texas
MoneyGeek named Next as Texas' best overall professional liability insurance provider, excelling in affordability for both LLCs with 20 employees and sole proprietors. The table below shows MoneyGeek scores and costs for all companies we've reviewed so you can see how the insurers stack up.
How was this MoneyGeek score calculated?
MoneyGeek used the following weights to rank the best professional liability insurance in Texas:
- Affordability for LLCs: 25%
- Affordability for sole proprietors: 25%
- Customer satisfaction: 20%
- Financial stability: 15%
- Coverages offered: 10%
- Online quote process: 5%
MoneyGeek used two software development business profiles to gather professional liability quotes:
- 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
Next | MoneyGeek Score97 | Monthly Cost Without Employees$42 | Monthly Cost With 20 Employees$233 |
The Hartford | MoneyGeek Score95 | Monthly Cost Without Employees$89 | Monthly Cost With 20 Employees$298 |
biBERK | MoneyGeek Score93 | Monthly Cost Without Employees$132 | Monthly Cost With 20 Employees$482 |
Thimble | MoneyGeek Score90 | Monthly Cost Without Employees$49 | Monthly Cost With 20 Employees$1,839 |
Exceptional affordability for LLCs and sole proprietors
High customer satisfaction rating
Quick and easy quote process
Limited range of coverage options
Financial stability may be less robust
Quote time isn't the fastest
Next offers the best professional liability insurance in Texas, particularly excelling in affordability. The monthly cost is $233 for LLCs and $42 for sole proprietors. Next's customer satisfaction is high, reflecting their commitment to superior service. The company also makes it easy to get a quote, taking an average of one minute and ten seconds. However, while Next offers a range of coverages, it falls short of some competitors. The financial stability of Next, based on an A- AM Best rating, might not be as robust as some other insurers, but it's still dependable.
Cheapest Professional Liability Insurance in Texas
Next is the cheapest professional liability insurer in Texas, with average monthly costs of $233 for LLCs with 20 employees and $42 for sole proprietors. The Hartford, the second-cheapest, charges $298 and $89, respectively. Our affordability score combines these two costs to present a balanced view of overall cost-effectiveness.
How was this MoneyGeek score calculated?
MoneyGeek used the following weights to find the cheapest professional liability insurance in Texas:
- Affordability for LLCs: 50%
- Affordability for sole proprietors: 50%
Unbeatable price point for both LLCs and sole proprietors
Positive customer service feedback
Convenient, rapid quote process
Financial stability isn't top-tier
Coverage diversity could be enhanced
Quicker quote times are available elsewhere
Next is the go-to choice in Texas for cheap professional liability insurance. The company's policies are cost-effective for both LLCs and sole proprietors. Next's customer satisfaction ratings underscore their excellent service quality. The time required to obtain a quote is also quite brief, taking just over a minute. However, there is room for improvement in terms of financial stability and coverage options, though Next still maintains a reliable A- AM Best rating.
Best Professional Liability Insurance for Sole Proprietors in Texas
Next tops the list as the best professional liability insurer for Texas-based sole proprietors, earning a MoneyGeek score of 96 out of 100 thanks to its affordability and swift quote generation time. With a monthly cost of just $42, Next surpasses its closest competitor, Thimble, which scored 94 out of 100. If you're a sole proprietor, Next offers exceptional value and efficiency.
How was this MoneyGeek score calculated?
MoneyGeek used the following weights to find the best professional liability insurance for sole proprietors without employees in Texas:
- Affordability for sole proprietors: 50%
- Customer satisfaction: 20%
- Financial stability: 15%
- Coverages offered: 10%
- Online quote process: 5%
Outstanding affordability for independent professionals
Excellent customer service track record
Swift and efficient quote process
Adequate, but not superior, financial stability
Limited breadth of coverages offered
Faster quote times can be found elsewhere
Next ranks as the best professional liability insurance provider for sole proprietors without employees in Texas. The insurer combines great affordability, high customer satisfaction and a fast quote process, making it an excellent choice for independent professionals. Despite its mediocre financial stability score, based on an A- AM Best rating, Next is a reliable option. Though its range of offered coverages could be more extensive, Next remains a strong contender in the insurance market.
Best Professional Liability Insurance for LLCs With 20 Employees in Texas
The Hartford earns the top spot for professional liability insurance for Texas LLCs with 20 employees, achieving a MoneyGeek score of 98 out of 100 based on its affordability, customer satisfaction and coverage range. With a monthly cost of $298, it edges out the second-place insurer, biBERK. It's important to note that employee count significantly influences insurance costs; businesses with fewer than 20 employees may pay less, while those with more can expect higher costs.
How was this MoneyGeek score calculated?
MoneyGeek used the following weights to find the best professional liability insurance for LLCs in Texas:
- Affordability for LLCs: 50%
- Customer satisfaction: 20%
- Financial stability: 15%
- Coverages offered: 10%
- Online quote process: 5%
Top-rated affordability for LLCs
High customer satisfaction ratings
Wide range of coverages offered
While quote time is good, faster options exist
Despite high financial stability, others score higher
The Hartford is the top choice for professional liability insurance for LLCs with 20 employees in Texas. The company excels in affordability, customer satisfaction and the breadth of coverages offered. The Hartford's financial stability is quite strong, as indicated by its A+ AM Best rating, providing reassurance to policyholders. The company's quote generation process is also quick, taking just a minute and nine seconds.
Best Professional Liability Insurance for Fast Quotes in Texas
Thimble leads its competitors in Texas for quick professional liability insurance quotes, delivering an average quote time of just 27 seconds. A fast online quote process allows you to compare insurance options quickly, make informed decisions and secure coverage with minimal disruption to your daily operations, saving valuable time and resources.
How was this MoneyGeek score calculated?
The company below has the fastest quote time in Texas. The company’s MoneyGeek score is based on the following weights:
- Affordability for LLCs: 25%
- Affordability for sole proprietors: 25%
- Customer satisfaction: 20%
- Financial stability: 15%
- Coverages offered: 10%
- Online quote process: 5%
Fastest quote process of the companies on our list
Affordable for sole proprietors
Broad range of coverage options
High cost for LLCs
Customer satisfaction is below average
Financial stability could be stronger
Thimble stands out in the Texas professional liability insurance landscape for its fast quote process, clocking in at just 27 seconds. For sole proprietors, Thimble offers excellent affordability, with a monthly cost of $49. Thimble's offerings for LLCs are more costly at $1,839 per month. The company boasts solid financial stability with an A AM Best rating, though not top-tier, and has room for improvement in customer satisfaction. However, the insurer does offer a diverse range of coverages to cater to different business needs.
How Much Is Professional Liability Insurance in Texas?
In Texas, the average monthly cost of professional liability insurance is approximately $713 for LLCs with 20 employees and $78 for sole proprietors without employees. This cost is based on the policy limits set at $1 million per occurrence, a $1 million aggregate limit and a $5,000 deductible. Here’s what those policy limits mean:
- The per occurrence limit is the most an insurer would pay for a single incident throughout the policy’s term.
- The aggregate limit is the most an insurer would pay for all incidents combined throughout the policy’s term.
- The deductible is the out-of-pocket amount the policyholder would have to pay before insurance coverage starts to pay out a claim.
When comparing Texas to other states, the cost of professional liability insurance for sole proprietors without employees and LLCs with 20 employees is in the middle range. Professional liability insurance costs in Texas are neither significantly higher nor significantly lower than in most other states, indicating a balanced insurance market.
Check out the table below, which provides the average monthly costs of professional liability insurance in each state, to compare and understand the costs associated with your location.
Texas | Average Monthly Cost Without Employees$78 | Average Monthly Cost With 20 Employees$713 |
Factors Impacting Professional Liability Insurance Costs in Texas
The cost of professional liability insurance in Texas is not a one-size-fits-all figure. It's tailored to each business based on specific factors, which can influence the cost of coverage, making it higher or lower than the state average. Understanding how these elements impact your premium is key to making informed decisions about your professional liability insurance.
Industry and type of services provided
Certain industries and professions come with higher risks than others. For example, a construction company faces different kinds of risks compared to a consulting firm. The more risk associated with the services you provide, the higher your insurance costs can be.
Location
Where your business operates also plays a role in determining your coverage costs. Higher costs of living or higher litigation rates in your area can lead to increased insurance premiums.
Number of employees
The more employees you have, the higher your insurance costs are likely to be. This is because having more employees can increase the risk of errors or omissions that could lead to a claim.
Coverage limits
Choosing higher coverage limits means your insurer would potentially pay out more in the event of a claim. Therefore, higher limits usually lead to higher premiums.
Policy add-ons
Adding extra coverages to your policy, such as general liability or property coverage, can increase your premium. While these add-ons can provide valuable protection, assessing their costs versus their benefits to your business is essential.
Who Needs Professional Liability Insurance in Texas?
Professional liability insurance is typically not a legal requirement for most businesses. There are exceptions to this rule in high-risk industries like healthcare and law, where malpractice insurance — another name for professional liability insurance — may be legally required.
- Legal malpractice insurance: In the legal field within Texas, the state doesn't require attorneys to carry professional liability insurance. However, some referral services in the state may only recommend insured lawyers.
- Medical malpractice insurance: While the state of Texas doesn't impose a legal obligation on physicians to maintain medical malpractice insurance, individual hospitals and healthcare facilities may enforce their own rules. These institutions often require their healthcare providers to carry malpractice insurance as a condition of their employment. There are also specific rules regarding filing medical malpractice suits in Texas.
Even when not legally required, professional liability insurance provides a financial safety net in the event of claims or lawsuits for alleged negligence or failure to perform professional duties. It safeguards the business's reputation, maintains client trust and offers peace of mind, allowing you to focus on your core operations without worrying about potential legal disputes.
Frequently Asked Questions About Professional Liability Insurance in Texas
Understanding professional liability insurance in Texas may seem daunting as many variables are involved. The following questions delve into the highest-rated and most cost-effective insurance providers, provide a detailed breakdown of what this type of insurance typically covers and offer insight into the average costs specific to Texas.
Next offers the best professional liability insurance in Texas based on its MoneyGeek score of 96 out of 100. Next excels in affordability, customer satisfaction and swift quote response time. However, remember that the best insurance for you hinges on specific factors like your business size, number of employees and unique coverage requirements.
Next stands out as the cheapest choice for professional liability insurance in Texas, offering an average monthly cost of $233 for LLCs with 20 employees and $42 for sole proprietors without employees. These attractive rates contribute to Next's high standing in the market. Keep in mind that the most cost-effective insurance for your specific needs will vary depending on factors such as your business location and employee count.
Professional liability insurance in Texas typically covers financial losses that may arise due to errors, omissions or negligence while delivering professional services. It generally does not cover intentional misconduct, bodily injury and property damage, which are covered by general liability insurance, employee injuries, covered by workers' compensation insurance, or punitive damages.
The average monthly cost of professional liability insurance in Texas varies based on business details. For example, an LLC with 20 employees can expect to pay an average of $713 per month. On the other hand, sole proprietors without any employees typically pay significantly less, with costs averaging $78 per month.
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
- Texas Law Changes. "Medical Malpractice Laws in Texas." Accessed June 3, 2023.